Missouri Governor Mike Kehoe (Republican) signed Senate Bill 1233 on Monday, establishing an alternative licensure pathway for Certified Public Accountant (CPA) candidates. The signing was announced via a press release from the governor's office and a social media post by the Missouri Society of CPAs (MOCPA).

According to MOCPA, the new rule takes effect on August 28 and aims to relax educational requirements for prospective CPAs. It provides an optional certification route: candidates must complete a bachelor's degree that includes accounting coursework, accumulate two years of professional experience, and pass the CPA exam. This pathway replaces the traditional requirement of 150 college credit hours, equivalent to five years of higher education.

Details on the specific coursework the bachelor's degree must include are still under discussion and are expected to be approved by the Missouri State Board of Accountancy as early as July 30. "While it may seem like a tight timeline, this initiative has been in the works for a year," said Dena Hull, MOCPA's Vice President of Strategy and Communications, in response to a question from CFO Dive about the bill's August effective date.

With this move, Missouri joins more than 40 states that have relaxed CPA educational requirements by adding a lower-cost option—substituting an extra year of work experience for the 150 credit hours—to attract talent. CFO Dive has previously reported on this trend.

CPA licensure reform is part of the industry's efforts to attract a new generation of accountants, addressing labor shortages that have hit certain areas, such as rural regions and government agencies, particularly hard.

There are signs that the talent shortage may be easing as layoffs increase and automation and outsourcing fill some of the labor gap. Meanwhile, a recent Controllers Council survey found that 61% of finance leaders reported facing a slight or severe shortage of finance and accounting talent, up from 46% the previous year. CFO Dive previously reported on the survey results.

CPA legislation has largely enjoyed bipartisan support, with many lawmakers viewing it as a workforce development tool. However, the shift has also raised concerns about how the industry and educational institutions will ensure that new accountants receive the necessary training to provide accurate and reliable financial reporting.

"As a member of the accounting department advisory board at the University of Missouri–St. Louis, I have given deep thought to the pros and cons of this move," wrote Andrew Berhorst, Director of Operations, in a LinkedIn comment on MOCPA's page responding to the bill's signing. "My conclusion is... the accounting department at UMSL's Ed G. Smith School of Business is proactively addressing this change and has developed excellent plans!"

According to MOCPA, only a few states—Michigan, Massachusetts, North Dakota, Wyoming, and Florida—have yet to formally implement the licensure reform sweeping the nation. MOCPA closely tracks this legislative initiative.

Governor Kehoe's action follows similar bills signed last month by Rhode Island Governor Dan McKee and Vermont Governor Phil Scott. CFO Dive previously reported on these developments.

For the latest updates on CPA licensure changes, visit CFO Dive's related tracker page.