If you’re living abroad and looking to become a US Certified Public Accountant (CPA), there are various factors to consider. Obtaining a CPA license is essential if you want to work in accounting and finance in many countries, including the United States. Here’s everything you need to know about getting a US CPA from abroad.

Understanding the CPA Exam

The CPA exam is a four-part, computer-based test that covers auditing and attestation, business environments and concepts, regulation, and financial accounting and reporting. The exam is rigorous and requires extensive preparation to pass. The test is administered by the American Institute of Certified Public Accountants (AICPA) in various locations worldwide.

Eligibility Requirements

To be eligible to take the CPA exam, you need to meet a set of requirements set by the individual state boards of accountancy. These requirements include educational, work experience, and residency requirements. Therefore, it’s crucial to research the specific requirements of the state board you plan to apply to. Based on those requirements, you may choose to take the Uniform CPA Exam or the International Qualification Exam (IQEX). The IQEX is a shorter, two-part exam specifically designed for qualified accountants who are licensed in an international jurisdiction and wish to obtain a US CPA license.

Education Requirements

Typically, the educational requirement for CPA licensure is a bachelor’s degree from an accredited university, with a specified number of hours of accounting coursework. However, state boards may also accept the equivalent of a US degree from foreign institutions. Therefore, it’s essential to check whether your foreign degree meets the requirement before applying to take the exam (see section below regarding international evaluation).

In addition to having a bachelor’s degree from an accredited university, aspiring CPA candidates must fulfill the 150-credit hour requirement to be eligible to take the CPA exam and obtain a CPA license. This requirement is designed to ensure that candidates have enough education and training to succeed in the field of public accounting.

The 150 credit hours typically consists of 120 semester units of coursework along with an additional 30 semester units of upper-division classes which include accounting, business courses, or a combination of both. However, each state board of accountancy may set its standards for the educational requirements, and candidates must review the requirements of the state board where they plan to apply.

CPA Credits was founded in order to assist prospective CPAs earn their credits more conveniently and more affordably.

International Transcript Evaluation

If you’re living abroad and have completed coursework outside of the United States, you will need to have your international transcripts evaluated to determine whether they meet the education requirements necessary to take the CPA exam. There are various services available to evaluate international credentials, such as the National Association of State Boards of Accountancy’s (NASBA) International Evaluation Services. They can provide an evaluation report that indicates a suggested US degree equivalency based on education completed, the institution attended and the original country of the institution.

Work Experience Requirements

Work experience is also a crucial requirement for obtaining a CPA license in most states. You’ll need to have two years of relevant accounting experience under a licensed CPA or public accounting firm. However, some state boards may accept experience obtained outside of the US, and this is an area where obtaining a CPA from abroad can work in your favor. Therefore, if you have foreign work experience, it’s essential to check whether the state board you’re applying to allows you to use that experience towards the work experience requirement.

Preparing for the Exam

Preparing for the CPA exam is a significant undertaking. You’ll need to study and review a vast amount of accounting material. However, the good news is that there are various study materials available, including online courses, review courses, and textbooks. Therefore, you can prepare for the exam while living abroad. Many US universities also offer online courses that you can take to satisfy the education requirement.

Applying for the Exam and Licensure

Once you’ve met the educational and work experience requirements, you can apply to take the CPA exam. The application process varies by state, but typically involves submitting transcripts, proof of work experience, and a fee. The fee for taking the CPA exam varies by state as well. Once you’ve passed the exam, you’ll then apply for licensure to the state board of accountancy where you desire to work.

Maintaining Your CPA License

Maintaining your CPA license requires meeting continuing education requirements, which vary by state. Most states require CPAs to complete a certain number of hours of continuing education each year. It’s up to you to ensure you’re meeting the requirements of the state board where you’re licensed.

Benefits of Obtaining a CPA from Abroad

Obtaining a US CPA from abroad offers several benefits. First of all, a US CPA license is highly recognized and valued within the accounting and finance industry worldwide. Therefore, it opens up a range of career opportunities both locally and internationally. Additionally, if you’re a foreign national, obtaining a US CPA may increase your chances of being hired by a US company, as it demonstrates a deep understanding of US accounting principles and regulations.

Furthermore, obtaining a US CPA from abroad is a great advantage if you plan to work for a multinational corporation or accounting firm. With a US CPA license, you can take advantage of various global opportunities and work in different countries without having to go through a separate licensure process.

Conclusion

Obtaining a US CPA from abroad requires a significant amount of preparation and work, but the potential benefits are well worth the investment. With a US CPA license, you can access a range of new career paths and work in different countries. If you’re interested in obtaining a US CPA from abroad, it’s crucial to start by checking the eligibility requirements set by the state board where you plan to apply. From there, you can take the necessary steps to meet the requirements and prepare for the exam, ensuring you’re set up for success in the world of accounting and finance.