Continuing Professional Education: CPE Requirements for CPAs

After passing the CPA exam, all professionals are required to complete a certain number of CPE hours. The specifics of these hours vary by state, but in most places, the number works out to be 120 for every three-year reporting cycle or 40 hours per year. 

It can be difficult to keep up with the changing requirements, so always refer to your state’s board for the most recent rule updates. 

Let’s break down some of the ways CPE rules vary by state.

Most states require a minimum of 40 annual CPE hours for licensed CPAs to remain compliant. Because their reporting periods vary, this could be 120 for a three-year reporting cycle or 80 for a two-year reporting cycle. 

Most states require a minimum of 40 annual CPE hours for licensed CPAs to remain compliant. Because their reporting periods vary, this could be 120 for a three-year reporting cycle or 80 for a two-year reporting cycle. 

Some states with biennial or three-year reporting cycles implement a minimum or maximum number of hours that can be completed per year. The precise limits, again, vary by state, but they are typically 20 hours per year. This prevents professionals from cramming all 80 or 120 hours into a single year.

Most states require a minimum number of hours to be spent on ethics-related courses each year. Some minimums are as low as four hours for a three-year reporting cycle while some are as high as four hours in a calendar year.

Some states require that ethics courses be approved by the NASBA to qualify, so be sure to confirm with your jurisdiction before completing an ethics CPE course. 

Keeping track of and reporting on your CPE hours is incredibly important. As a professional, it is your responsibility to keep documentation that proves your compliance. For this reason, you must familiarize yourself with the reporting period in your state.

The CPE reporting periods for CPAs range from one to three calendar years. The specific dates on which each new period begins also vary by state.

Many states have implemented additional subject requirements outside of the minimum for ethics-related courses. Some common additional subject requirements include:

• Auditing
• Accounting
• Taxation
• Business law
• Management advisory services
• Fraud
• Technical skills
• Government auditing
• Preparation engagement 

Some states even mandate that a certain number of CPE credits be earned through specific modalities such as webinars or formal classes.

Another important consideration is the specific limitations each state has for how credits can be earned. 

Certain states place a limit on how many credits can be earned from specific modalities. For example, some limit the number of credits that can be claimed from committee meetings, course instruction, and published material. 

Although the NASBA requires that all CPE credits be in approved subject matter, some states make exceptions if you can prove your course contributed to your professional development. However, non-approved subjects must not make up all of your credits. Each state has different limits for this exception.

Other exemptions could include professionals who are reviewing their license in a state with varying requirements from the state in which they first obtained their license. If you have recently moved to another state halfway through a reporting cycle, your new state of residence may make an exception for that reporting period, provided you meet the requirements from your original state.

Although credit calculation varies drastically depending on a number of factors, there are some general trends. Most states count one hour of CPE study as one credit, but there are plenty of limits and exceptions to this.

Most NASBA-approved credit modalities will clearly outline the number of credits a CPA can earn upon completion. If this information is unavailable, you can always contact the instructor or organizer to confirm.

While it is not required to hold the certificate, many CPAs choose to be a part of the AICPA. The organization has a clear, streamlined list of rules for CPE hours that are a requirement for membership.

The AICPA requires that its members complete 120 hours of CPE credits every three years. The reporting period for each begins January 1 the year following your initial certification. 

Only certain programs qualify for AICPA CPE hours, such as in-house training, trade association conferences, or university classes.

In all states, CPAs are responsible for documenting and recording all their completed CPE hours. While each state may have varying requirements for document submission, it’s a good general best practice to keep every record or transcript related to a completed credit.

Here are some forms of documentation you should keep on file:

• Sponsor details
• Title and description of course content
• Date of attendance and completion
• Location of course
• Number of completed CPE hours
• Registration or enrollment letters
• Records of attendance
• Progress reports
• Certificates and completion documents
• Records of performance

Organize all documents into files by reporting period and keep them on file for at least three years following the end of the respective reporting period.

All states have a different list of acceptable subjects. And each topic might be subject to limitations and minimums. As a general rule, you should aim to acquire at least four hours in ethics courses and focus the remainder of your hours on accounting-related subjects.

Here are some NASBA-approved topics for CPE hours:

• Accounting
• Business applications of mathematics and statistics
• Business law
• Computer science
• Economics
• Ethics
• Financial management
• Management
• Production
• Organizational behavior

Be sure to confirm with the board in your state before enrolling to a course to ensure it meets the standards.

First, you should develop a plan that allows you to comfortably complete the hours without having to cram them into the final months of the reporting period. Luckily, so long as it is a formal course involving NASBA-approved training material, there are many convenient options to choose from. Here are a few:

• College courses
• Short courses or seminars
• Professional exams
• Self-study courses
• Instructing a college course
• Leading a discussion or seminar
• Publishing technical materials

My personal favorite of the above options are self-study courses. That’s because I love being able to learn at my convenience, and from whichever location is accessible to me. I also love the variety of modern, engaging topics to choose from online.

In my opinion, it’s the most convenient and useful way to earn credits. One problem I did have with self-study methods, however, was that it was sometimes difficult to find courses that balanced relevant, useful information with engaging and interesting delivery.

In other words, many of them were a bit boring.

That’s what led to me creating my dream self-study CPE program. It’s called CPE Flow: a growing series of exclusive CPE masterclasses taught by the brightest and most exciting experts in the accounting industry. 

I wanted to make something that blended Netflix with university; the perfect mix of education and entertainment. 

If you become a CPE Flow member, you’ll get access to interesting video masterclasses that tackle the biggest issues facing our industry. They will equip you with all the skills you need to offer more value to your employer while also making the process of earning CPE hours fun. 

Curious? Explore our course catalog and start upskilling today! .

Thank you for reading,