What's Happening?
California Governor Gavin Newsom has signed Assembly Bill 1175 into law, introducing alternative pathways to CPA licensure. This legislation allows candidates to qualify with a bachelor's degree and two years of experience, a master's degree and one year of experience, or an approved accounting certificate program with six months of experience. The new pathways aim to address the CPA talent shortage by reducing the previous 150-credit-hour requirement. The law also facilitates interstate mobility for CPAs, allowing out-of-state professionals to practice in California.
Why It's Important?
The introduction of alternative pathways to CPA licensure is a significant step in addressing the ongoing shortage of accounting professionals. By lowering barriers to entry, the law aims to attract more candidates to the profession, ensuring that the growing demand for CPA services is met. This change could have a ripple effect across the U.S., prompting other states to reconsider their licensure requirements. The legislation also supports economic growth by ensuring that businesses have access to qualified accounting professionals.
What's Next?
The new licensure pathways will take effect on January 1, 2027. In the meantime, educational institutions and accounting firms may begin adjusting their programs and recruitment strategies to align with the new requirements. The California Board of Accountancy and other stakeholders will likely monitor the impact of these changes on the CPA workforce and make further adjustments as needed.
