California’s CPA Licensure Requirements: Addressing the Workforce Shortage

California, like many other states, is facing a significant workforce shortage in the accounting industry. To address this, states and professional organizations are considering changes to CPA licensure eligibility requirements.

Most states are moving in this direction, and the American Institute of Certified Public Accountants (AICPA) has announced alternative pathways for licensure. Many state boards are working on the legislative side to implement these changes, which are expected to take effect in about a year.

In California, to be eligible for a CPA license, you must currently have:

• A minimum of a bachelor’s degree in any subject
• Completion of at least 150 total semester units, including 78 units distributed across four specific categories
  • 24 units of accounting subjects
  • 24 units of business-related subjects
  • 20 units of accounting study
  • 10 units of ethics study
• Passed the CPA exam
• Obtained one year of relevant accounting experience under the supervision of an individual with an active CPA license

Addressing the Workforce Shortage: Proposed Flexibility in CPA Requirements

Given the workforce shortage, states are considering allowing CPA candidates to substitute 30 semester units with an additional year of work experience (totaling two years of accounting experience). 

The recent proposed change in CPA requirements aims to make the designation more accessible and attractive to potential candidates by offering greater flexibility.

Industry leaders, including Big Four accounting firms, support this change, emphasizing the urgent need to address the workplace shortage.

The formulation and evaluation of major changes to the accounting industry are not without strict review and consideration from the current business leaders in the accounting industry.

As the UC Davis MPAc Academic Executive Director, I have been a CalCPA Council member and served on the CalCPA Accounting Education Committee. I have played a pivotal role in expanding the interactions between accounting educators and accounting practitioners to collectively foster students’ future career success.

I am also a member of the CalCPA Pipeline Advisory Group, collaborating with firms and professionals in strategic planning to address workforce needs, promote diversity, and ensure a robust pipeline of future accounting professionals.

Given the new pathway proposed by American Institute of Certified Public Accountants (AICPA) and National Association of State Boards of Accountancy (NASBA), I also represent educators and am involved in focus groups by California Board of Accountancy regarding the new educational requirements for California.

The state board will provide the additional pathway to CPA candidates and is currently working on writing the legislature.

Fast-Track Your CPA Journey with the Nine-Month UC Davis MPAc Program

The UC Davis MPAc program is designed for both accounting majors and others who are interested in the accounting profession. With the esteemed faculty, the STEM-designated curriculum provides students the training to excel in their careers and pass the CPA exams. 

Our classroom experience focuses on applications-based learning, ensuring students able to apply fundamental concepts to real-world settings. This method tests students not only their understanding of concepts, but also their ability to apply and analyze situations. Our STEM designation also allows us to ensure current technology and tools are utilized in the classroom setting.

Another cornerstone of the MPAc curriculum is collaboration, our students are tasks with working with their peers in a variety of assignments to ensure their communication, teamwork and  other relevant soft skills are refined in the program.

Our MPAc program offers a significant time advantage by allowing students to complete their graduate degree in just nine months, compared to the proposed pathway of an additional year (12 months) of work experience. This faster timeline enables students to "gain" three months while still meeting educational requirements and advancing toward their CPA licensure efficiently.

Through the program, students enjoy expanding their professional networks, as they have access to events and career support services. The resources and support the program provides are instrumental in preparing students to begin their careers in public accounting—providing a step-by-step support system and direct access to accounting firms. The majority of our student body has little to no prior work experience, and can leverage the career support services to jumpstart their career in public accounting.

In nine short months, a UC Davis MPAc degree fulfills the 24 semester units of accounting subjects, 20 units of accounting study and 10 units of ethics study of the California CPA education requirements.

Given the curriculum, workshops, and symposiums provided to MPAc students throughout the program, our students are up to date on various aspects of the accounting profession and the trends in the industry. This is what allows both accounting and non-accounting majors to benefit greatly from the MPAc program.

The evolving CPA pathways present a promising solution to the accountant shortage, offering greater accessibility and flexibility for aspiring professionals.

As the industry adapts to these changes, initiatives like those I lead through the UC Davis MPAc program—such as the STEM-relevant curriculum, Forensic Accounting Symposium, and workshops conducted by executives with professional organizations—will play a critical role in preparing a diverse and competent new generation of CPAs ready to meet the demands of the profession.