The journey to becoming a Certified Public Accountant (CPA) is a formidable one, characterized by rigorous educational requirements, a challenging examination process, and additional criteria such as work experience. Among these steps, one of the most debated topics is whether aspiring CPAs should first complete the mandatory 150 credit hours of higher education before taking the CPA exam, or whether they should take the exam first and then finish obtaining their credit hours. Of course, this question pertains to those states that allow one to sit at 120 credit hours. While there is no one-size-fits-all answer, this article will explore the pros and cons of both approaches to help CPA candidates make an informed decision.

Understanding the Requirements

Before delving into the pros and cons, it is crucial to understand the CPA requirements. To be eligible for the CPA license, candidates generally need to:

  1. Complete 150 Semester Hours of Education: This typically includes a bachelor’s degree in accounting or a related field and additional coursework to meet the 150-hour requirement.
  2. Pass the Uniform CPA Examination: Composed of four sections—Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation.
  3. Gain Relevant Work Experience: The required duration and nature of experience vary by state.
  4. Meet State-Specific Requirements: These can include ethics exams, specific coursework, or residency requirements.

Many states also allow candidates to sit for the CPA exam after completing 120 credit hours, even before obtaining the full 150 hours needed for licensure.

The Case for Completing 150 Credit Hours First

Pros:

  1. Thorough Academic Preparation: Completing all 150 credits before sitting for the CPA exam ensures comprehensive coverage of accounting principles and related subjects. This can enhance candidates’ understanding and performance on the exam.
  2. Gradual and Structured Learning: Achieving 150 credit hours often involves a blend of undergraduate and graduate-level (or, at minimum, upper-level) coursework. This structured pathway can help reinforce and build upon foundational accounting knowledge.
  3. Fulfillment of Educational Prerequisites: Some states have specific course requirements within the 150 hours. By completing these hours first, candidates ensure they meet all educational prerequisites for both the exam and licensure.
  4. Timely Scheduling: Completing educational requirements ahead of the exam can align better with recruitment cycles for accounting firms. Many employers prioritize candidates who have met educational criteria and are ready to focus on passing the CPA exam.

Cons:

  1. Increased Time and Financial Investment: Extending education to meet the 150-hour requirement before taking the exam can be time-consuming and financially demanding. To alleviate this, CPA Credits offers heavily discounted self-paced courses.
  2. Potential Delays in Exam Preparation: Spending additional time in school could delay focused CPA exam preparation, particularly if the coursework is not directly aligned with the exam content.

The Case for Taking the CPA Exam First

Pros:

  1. Early Exam Completion: Sitting for the exam after completing 120 credit hours allows candidates to tackle the CPA exam sooner, potentially shortening the overall timeline to licensure.
  2. Focused Exam Preparation: Completing core accounting courses up to 120 hours can provide a solid foundation, allowing candidates to concentrate exclusively on CPA exam content without the additional coursework burden.
  3. Reduced Academic Pressure: Once the exam is out of the way, candidates can complete the remaining credit hours at a more flexible pace, potentially balancing work and final coursework more effectively.
  4. Immediate Relevance: For some candidates, the knowledge gained directly from the 120 hours of coursework may be fresher, resulting in better exam performance.

Cons:

  1. Risk of Disqualification: If candidates fail to complete the additional 30 credit hours within a specific time frame, they risk invalidating their exam scores or facing licensing delays.
  2. Fragmented Focus: Balancing ongoing coursework and exam preparation simultaneously can be challenging and could lead to suboptimal performance in both areas.
  3. Employer Perceptions: Some employers might prefer candidates who have completed their educational requirements, perceiving them as more committed and prepared for the profession.

Balancing Both Approaches: A Blended Strategy

Given the advantages and disadvantages of each approach, some candidates may opt for a blended strategy. This involves taking a portion of the CPA exam while completing the remaining credit hours. For instance, candidates might complete 120 credits, take two sections of the CPA exam, and then return to complete additional coursework before attempting the remaining sections. This can provide a balanced pathway, leveraging the benefits of both strategies while mitigating potential downsides.

Making the Decision

Ultimately, the decision of whether to complete the 150 credit hours before taking the CPA exam or vice versa is highly individual. Candidates should consider their personal circumstances, learning preferences, financial situation, and career goals. Here are some guiding questions to facilitate decision-making:

  • Academic Readiness: Do you feel sufficiently prepared with 120 credit hours to tackle the CPA exam, or would the additional coursework provide essential knowledge and confidence?
  • Time Management: Can you efficiently balance exam preparation with completing extra coursework, or would focusing on one objective at a time yield better results?
  • Financial Considerations: Is immediate entry into the workforce a priority to offset educational expenses, or can you afford to invest more time in your education before job hunting?
  • Support Systems: Do you have access to supportive resources, such as academic advisors, mentors, and CPA review courses, to guide your chosen pathway?

Conclusion

There is no definitive answer to whether it is better to first obtain 150 credits and then take the CPA exam or to take the exam and then finish obtaining the credit hours. Each pathway has its own set of advantages and drawbacks, influenced by individual preferences, circumstances, and goals. By carefully evaluating these factors, aspiring CPAs can chart a course that aligns with their strengths and aspirations, ultimately achieving success in their professional journey.