How to Work in the U.S. As a Foreign-Educated Accountant (CPA)

Certified Public Accountants (CPAs) play a crucial role in tax, auditing, and consulting. If you were educated outside the United States but wish to practice as a CPA, you must meet specific licensing requirements. Fortunately, many U.S. states offer pathways for internationally trained accountants to become certified. And although the process may feel daunting, it’s achievable with some effort.

This guide outlines the essential steps to obtaining your CPA license in the U.S., including educational requirements, the CPA exam, credential evaluation, and state-specific licensing processes.

Why Become a CPA in the United States?

You might ask yourself if pursuing a career as a CPA in the United States is worth it. And the answer is yes. Accounting services are critical across industries. CPAs ensure businesses and organizations stay on top of taxes and keep accurate financial records, from nonprofits to major corporations.

According to the U.S. Bureau of Labor Statistics, the demand for accountants and auditors is projected to grow 6 percent from 2023 to 2033, faster than the average for most professions. Additionally, there is already a noticeable shortage, and more CPA jobs are expected to open up in the next decade. According to the Wall Street Journal, the need for CPAs in the U.S. is so pressing that national groups like the American Institute of Certified Public Accountants (AICPA) are working to streamline the licensing process.

Earning Potential

A CPA license can also be financially rewarding. According to Indeed.com, the average annual salary for CPAs in the United States is approximately $92,000, with higher salaries in states such as:

• New York: $100,000 (Indeed)
• Massachusetts: $94,300 (Indeed)
• Florida: $94,700 (Indeed)

There is potential for even higher earnings as CPAs gain experience, specialize in areas like tax or forensic accounting, or move into managerial or executive roles.

Now that you know about the opportunities and earning potential, let’s look at the steps to get started as a CPA.

Step 1: Identify Your State’s Licensing Board

First, To become a CPA, you need to know which licensing board will grant your CPA license.

While a few national organizations, such as the National Association of State Boards of Accountancy (NASBA) and the AICPA, help oversee the work of CPAs in the U.S., your state’s licensing board will award your license.

Each state has its own board that sets the requirements for becoming a licensed CPA, and it’s essential to familiarize yourself with the specific regulations in the state where you plan to practice. For example:

• California Board of Accountancy handles CPA licensing in California.
• New York State Education Department oversees licensing in New York.

To make your search easier, the NASBA has assembled a directory to help people find the licensing board for each state.

Step 2: Credential Evaluation for Foreign-Trained Accountants

Before sitting for the CPA exam, foreign-trained accountants must have their academic credentials evaluated by an approved agency.

Credential evaluation services review the academic and professional qualifications of individuals educated outside the U.S. and compare international degrees and coursework to U.S. education standards as recognized by the NASBA, AICPA, and state accountancy boards.

The NASBA has assembled a detailed list of foreign credential evaluators in PDF format. You’ll notice that certain states accept some evaluators and reject others. These preferences differ from state to state, so pay attention to which organization is accepted by the state where you would like to work.

Evaluation Services

• NASBA’s International Credential Evaluation ($240) – Accepted in all states except Iowa and Kansas.
• Other State-Approved Evaluators – Costs range from $70 to $500 depending on the level of evaluation, with processing times varying from a few days to four weeks.

Since some states accept only specific evaluation services, confirm with your state’s board before selecting an agency. If you plan to practice in most states, the NASBA’s service is a good option since they’re already partnered with the AICPA, the organization that creates the CPA exam.

Required Documents

To complete your evaluation, you typically need:

• Your original degree certificate/diploma
• Transcripts and mark sheets
• Official translations (if documents are not in English)

No matter which credential evaluation service you choose, your transcripts must be translated into English before you submit them. The NASBA specifically requires official transcripts and diplomas that aren’t in English to be translated before they can process your application.

Processing Times

The processing time for credential evaluations can vary from a few days to as long as four weeks. However, many companies offer expedited processing for an additional fee, usually between $80 and $150

Certified Translations

If your documents are in a language other than English, you’ll need certified translations. You cannot translate your own documents—even if you are fluent in English. Many credential evaluation agencies offer translation services, but since we specialize in translation, our fees are usually lower, and our turnaround times faster.

To obtain a certified translation, you can place your order through our website or request a quote. You can simply send us scanned documents or even photographs of them; it is not necessary to send the physical documents for this part of the process.

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Step 3: English Proficiency and Language Considerations

Being comfortable with English is essential if you plan to become a CPA in the U.S. CPAs frequently communicate financial data, prepare detailed financial reports, and discuss tax regulations with coworkers and clients. On top of that, you’ll be writing emails, reviewing contracts, and preparing financial statements that use highly technical language.

Additionally, the Uniform CPA Exam is only administered in English, so you must be comfortable reading questions and navigating the exam’s computer software.

To demonstrate English proficiency, many CPA candidates take standardized tests such as:

• TOEFL (Test of English as a Foreign Language)
• IELTS (International English Language Testing System)

Beyond working, you’ll also need English to maintain your license. To keep your CPA license active, you must complete continuing professional education, often in specialized areas like tax or auditing. These courses are in English, so strong language skills will help you keep up and meet your requirements.

As you can see, fluency in English is crucial for passing the CPA exam, excelling in your career, and fulfilling ongoing licensing requirements.

Step 4: Taking the CPA Exam

The Uniform CPA Examination, developed by the AICPA, is a 16-hour test divided into four sections. For a detailed review of each part of the exam, you can check out the AICPA’s “Uniform CPA Examination Blueprint,” a free online PDF. But we’ll go over the most essential information you need to know about the exam.

Methods of Taking the Exam

Depending on where you live, two different methods exist to apply to take the CPA exam. In some states, candidates need to use the NASBA’s online application system, while in other states, candidates need to contact their board of accountancy directly to apply. To find out which method applies to your state, refer to the map on page 13 of the “CPA Exam Candidate Guide.”

No matter how you apply, if your application is approved, you’ll get an email letting you know that your Notice to Schedule, or NTS, is ready. This document includes the identification number for each exam section you’ve been approved to take. The email will direct you to the NASBA CPA Candidate Account website, where you can view and print your NTS.

It’s a good idea to print your NTS for two crucial reasons. First, you can’t schedule your exam without it. Second, you must have it on the exam day to take the test. While you can use an electronic version, if you arrive at the testing center and can’t access it, you’ll lose your exam date and forfeit your fees. So, it’s wise to print your NTS as a backup.

The NASBA and AICPA have partnered with Prometric to administer the exam in their test centers located throughout the United States. Using Prometric’s Pro Scheduler tool, you can see the testing center nearest to your address.

Scheduling the Exam

To schedule the exam through Prometric’s website, you’ll enter the exam section ID number listed on your NTS and the first four letters of your last name.

The identification number on your NTS also serves as the ‘Launch Code’ for each exam section. You’ll enter this code on the computer at the Prometric testing center as part of the login process.

Exam Test Drive

Prometric also offers a $30 service called “Test Drive,” which allows folks with an upcoming exam to visit the Prometric facility beforehand. During your 30-minute test drive, you’ll go through the processes of presenting the proper identification and paperwork and logging into the computer to get acquainted with the overall process without taking the exam itself.

CPA Exam Fees

The fees you’ll pay to take the CPA Exam depend on the state where you apply, but generally, there are two main fees to be aware of: the Application Fee and the Examination Fee.

First, the Application Fee is determined by your state’s Board of Accountancy. This is a non-refundable, one-time payment. While the amount varies by state, most states charge between $100 and $200, averaging about $140. You’ll pay this fee directly to your state’s board of accountancy.

Next, you’ll have to pay the CPA examination fee, which the NASBA recommends should be approximately $344.80 for each of the four sections. Most of the 50 state boards follow this fee, but each state accountancy board is allowed to charge a different amount.

If you pass all four sections of the CPA Exam on your first attempt, the total cost for the examination fees will be roughly $1,379.20. (This amount comes from multiplying $344.80, the typical fee per section, by 4.)

It’s important to note that these fees are non-refundable. Because of this, you should only schedule your exams when you’re confident that you’re ready to take them. Preparing thoroughly can help you make the most of each attempt and avoid paying for retakes.

Combining the exam fees and application fees, you should expect to pay around $1,580.

• Application Fee: $100 – $200 (varies by state)
• Exam Fee: $344.80 per section
• Total Estimated Cost: $1,580

Rescheduling the Exam

If you need to cancel or reschedule your exam, the timing affects the fee you’ll pay. If it’s between 6 and 29 days before your appointment, you’ll need to pay $35 to Prometric. If it’s within five days of your appointment, the fee increases to $84.84.

Exam Sections

To complete the exam, you must pass three “Core exam sections” and one “Discipline section” of your choice. In total, you’ll have four exam sections to complete, and you’ll have four hours for each separate part of the exam. Altogether, you’ll be testing for 16 hours, but don’t worry; you can take each exam section on a different day.

You can take the four sections in any order you like, and you’ll need to pass all four sections of the exam within an 18-month period.

The Core sections cover essential knowledge every CPA needs to protect the public interest. These three sections are:

• Auditing and Attestation, consisting of 78 multiple-choice questions and 7 Task-Based Simulations.
• Financial Accounting and Reporting, consisting of 50 multiple-choice questions and 7 Task-Based Simulations.
• Taxation and Regulation, consisting of 72 multiple-choice questions and 8 Task-Based Simulations.

For the Discipline section, you’ll choose one that matches your career focus. The options are:

• Business Analysis and Reporting, consisting of 50 multiple-choice questions and 7 Task-Based Simulations.
• Information Systems and Controls, consisting of 82 multiple-choice questions and 6 Task-Based Simulations.
• Tax Compliance and Planning, consisting of 68 multiple-choice questions and 7 Task-Based Simulations.

Scoring of the Exam

To pass a section of the CPA Exam, you must earn a score of at least 75. This score is determined through a process called scaled scoring, which means your score isn’t just based on the percentage of questions you get right.

The idea behind scaled scoring is to account for differences in difficulty between different versions of the exam. If you take an easier version of the test, for example, your score is adjusted to match the difficulty level. Similarly, if you take a more complex version, your score is adjusted to reflect that as well. This way, everyone is being measured against the same standard, no matter when or where they take the exam or how difficult it seems.

If you answer 75% of the questions correctly, that doesn’t automatically give you a score of 75. Instead, your score is calculated on a scale from 0 to 99, using a formula that considers whether your answers are correct and the difficulty of each question. This system ensures that scoring is accurate and fair, no matter which version of the exam you take.

For most sections of the exam, your score is split evenly between 2 parts: multiple-choice questions and task-based simulations, which we mentioned earlier. Each of these contributes 50% to your total score.

The only exception is the scores in the “information systems and controls” section, where the multiple-choice questions are weighted more heavily, accounting for 60% of the score. In comparison, the task-based simulations account for the remaining 40%.

Getting Your Exam Results

CPA exam scores come out at different times throughout the year, and you can check your score on the NASBA candidate portal. You can see the AICPA’s score release date schedule on their website to know when you’ll be able to see your exam results. On average, you should receive your exam scores within 1 to 3 months after you take the exam.

You’ll get a Candidate Performance Report if you don’t pass a section of the exam. This report gives you feedback on how you performed in different areas of that specific section, helping you focus on the areas that need improvement. Your score notice and performance report will be posted to your CPA Portal within 72 hours after your score is posted.

Preparing For the Exams

AIPCA

The AICPA has created some free materials that anyone planning to take the exam should review. You can start with their two-minute video, which gives an overview of how to use the exam software. It explains how to access tools and resources, move between questions, and use the navigation features during the test.

Another option is the AICPA’s free sample test, which you can try on your computer. This test includes questions from all six sections of the CPA Exam, and you’ll have up to two hours to complete it. While the sample test isn’t scored, it does provide the correct answers for each question. It’s a helpful way to familiarize yourself with the exam format and understand how the software works.

Other Study Resources

Plenty of private study courses are available for people who want additional help studying for the CPA exam.

Becker is the​​ most widely recognized provider of CPA exam preparation. They offer several packages with various materials, resources, and support. The most popular deal is the Pro Package, which costs $2,279.

With the Pro Package, you’ll get access to Becker’s printed and digital textbooks, 1,250 printable flashcards, the Final Review capstone course, and live online classes. You’ll also have access to shorter, concise, and engaging lecture videos.

The package gives you access to all three Core Section courses, plus the option to choose one Discipline Section course. You’ll even have the flexibility to try each Discipline Section for 30 days before making a final decision.

For personalized guidance, you’ll receive five coaching sessions with a Becker Success Coach to create customized study plans, along with five one-on-one tutoring sessions with a CPA Exam expert.

You’ll then have access to over 7,000 multiple-choice questions and more than 400 task-based simulation questions. You can challenge yourself with eight full simulated exams and 12 exclusive mini-exams, along with unlimited, customizable practice tests and a mobile app for on-the-go studying.

Finally, with the Pro Package, you’ll have unlimited access to the course until you pass the exam, which takes away the pressure.

In addition to Becker, many other companies, such as Gleim, Surgent, and UWorld, offer similar study courses at comparable prices.

However, if you want something more affordable, check out Ninja CPA. It’s just $67 a month as a study supplement or $87 for full access to Ninja’s comprehensive courses. The Ninja study resources include simulated exams, study notes, and digital flashcards.

The NINJA Book, a 572-page PDF, focuses on the essential concepts you need to know. NINJA Audio lets you study on the go, perfect for your commute. You’ll also have access to a test bank with over 8,000 multiple-choice questions and hundreds of simulations. On top of that, you’ll get weekly online group tutoring and access to a private social network where you can talk with other candidates preparing for the exam.

Forums

If you’re looking for a place to connect with other candidates about CPA exam prep, r/CPA is an excellent option. With over 85,000 members, there are new posts every day, and you’re likely to get a response right away. So, if you need advice or have a question, this subreddit is a fast way to find support.

The CPA Exam Candidates Forum is a great choice if you’d rather use a Facebook group. With over 25,000 members and posts every day, you’ll probably find support or answers to your questions quickly. A nice feature of the Facebook group is that it’s private, so you’ll need to request to join. This helps keep the focus on the CPA exam with less unrelated conversation.

Step 5: Meeting Additional Licensing Requirements

Once you’ve passed the CPA exam, you might need to follow some extra steps depending on the state in which you want to practice.

Nearly every state in the U.S. requires candidates to show proof of work experience and pass a state-specific ethics exam before receiving their license. The following are the requirements for 7 of the most popular states where immigrants often move.

California

• Work Experience: One year of general accounting work experience. The California Board of Accountancy does not specify the number of work hours in a year.
• Exam Requirements: Completion of a regulatory review course from an approved list, covering state-specific rules and ethical guidelines.

Florida

• Work Experience: One year of work experience verified by a licensed CPA. Must complete at least 2,000 hours over 52 to 104 weeks, with a minimum of 20 hours per week.

Illinois

• Work Experience: One year of full-time accounting work experience (no specific hour requirement).
• Exam Requirements: Completion of the Professional Ethics: The AICPA’s Comprehensive Course (For Licensure) with a 90% score on the exam.

Massachusetts

• Work Experience: 2,000 hours of accounting work completed within 1 to 3 years.
• Exam Requirements: Submission of three character reference letters addressed to the Board of Public Accountancy.

New Jersey

• Work Experience: One year of work experience totaling 1,750 hours.
• Exam Requirements: Completion of a four-hour Law & Ethics course, which can be taken up to 6 months before or after receiving a CPA license. The course must be from an approved provider.

New York

• Work Experience: One year of full-time work (at least 35 hours per week for five days) or part-time equivalent (at least 20 hours per week, with two weeks of part-time work equaling one full-time week).
• Exam Requirements: No additional ethics or state-specific exam is mentioned.

Texas

• Work Experience: One year of accounting work experience under a licensed CPA.
• Full-time: 12 consecutive months of employment.
• Part-time: 2,000 hours within a maximum of two consecutive years.
• Exam Requirements: Completion of a state-approved ethics course. The Texas State Board of Public Accountancy provides a list of approved courses.

Step 6: Maintaining Your CPA License

After receiving their licenses, CPAs will also need to renew them every 2 or 3 years.

Each state has its own rules for renewal, continuing education, and fees. Here’s a quick breakdown of the CPA license renewal requirements for seven of the most popular states where immigrants often move to the U.S.

License Renewal Requirements by State

While each state might have a few differences in its requirements, most follow similar guidelines, so the information we’ve covered should give you a clear idea of what to expect no matter where you choose to practice.

As you prepare to move to the U.S., you’ll notice that CPAs are in high demand, offering plenty of job opportunities and strong earning potential. Though the credentialing process may have its hurdles, it’s definitely a journey worth pursuing. With your expertise, you’ll have plenty of opportunities to specialize, take on leadership roles, or even teach the next generation of CPAs. With dedication and preparation, your CPA career in the United States awaits.

Author: Aaron Randolph | LinkedIn