The New Jersey Society of CPAs is proposing an additional pathway to obtain CPA licensure in the Garden State, backing a bill that would modify New Jersey’s Accountancy Act to allow CPA candidates to qualify for licensure by earning a bachelor’s degree, completing two years of experience and passing the CPA exam.
The bill (A5598), sponsored by Assemblyman Sterley S. Stanley, D-East Brunswick, passed the Assembly Regulated Professions Committee on Thursday. Earlier this week, the American Institute of CPAs and the National Association of State Boards of Accountancy approved changes in the Uniform Accountancy Act model legislation used in various states to add an alternative path to a CPA license beyond the traditional 150 credit hours requirement. A number of states have been proposing changes in the CPA licensure laws to alleviate the shortage of accountants, and some states like Georgia, Iowa, Ohio and Tennessee, have already passed them in their legislatures.
Under current law, candidates for a CPA license have to earn at least 150 credits (a bachelor’s degree plus 30 extra credits, or a master’s degree), to gain one year of work experience in accounting and pass the CPA exam. This option would still be available under the bill, but the proposed new qualifications would offer another route for CPA candidates. The New Jersey State Board of Accountancy supports the additional licensure pathway.
The bill also provides for individual practice privileges for out-of-state licensed CPAs who have a bachelor’s or higher degree, have passed the CPA exam and have at least one year of experience.
According to a recent survey by the NJCPA, 66% of the 187 businesses polled reported having difficulty finding accounting talent over the past 12 months. Of those companies, 47% said this has posed a moderate or high risk to their operations.
“The introduction of an additional path to CPA licensure will allow for greater flexibility in the licensure process without compromising the rigorous educational and experiential requirements that ensure CPAs remain trusted advisors,” said NJCPA CEO and executive director Aiysha (AJ) Johnson in a statement Thursday. “Keeping the profession open and accessible to promising young professionals is crucial, not only to the accounting field itself but to the communities CPAs serve.”
