Quick Overview:

  • Georgia state senators passed new legislation Wednesday evening, creating an alternative path to becoming a Certified Public Accountant (CPA) in the state that does not require 150 hours of college credit. According to Don Cook, vice president of legislative affairs for the Georgia Society of CPAs, the measure is equivalent to waiving the fifth year of college requirement. Supporters of alternative CPA pathways, which are gaining momentum nationwide, argue that the 150-hour rule poses an unnecessary barrier that reduces the number of new entrants into the accounting profession.
  • The bill still requires the signature of Georgia Governor Brian Kemp to become law. It would allow accountants seeking Georgia licensure to qualify by earning a bachelor's degree, completing two years of professional experience, and passing the CPA exam; or by earning a master's degree, one year of work experience, and passing the CPA exam. The bill also retains the original path of 150 credit hours, one year of work experience, and passing the CPA exam. The bill is set to take effect on January 1, 2026.
  • According to Corey Butler, spokesperson for the Minnesota Society of CPAs, at least seven states have passed or signed legislation so far this year aimed at alleviating the accounting talent shortage and easing CPA licensure pathways. The society is closely tracking related legislative developments. Shortly after Georgia's vote, Indiana lawmakers also passed a similar CPA pathway bill, Butler said.

In-Depth Analysis:

Indiana's CPA pathway bill passed Thursday afternoon and has been sent to Governor Mike Braun's office awaiting signature, confirmed Sherrill Rude, vice president of advocacy for the Indiana CPA Society. According to Butler's count, Indiana and Georgia join Ohio, Virginia, New Mexico, Utah, and Hawaii in passing new CPA pathway legislation, with further action expected to intensify.

"I expect the pace to accelerate, with more states joining this list in the coming months," said Geno Fragnito, director of the Minnesota Society of CPAs, in an email last week. This came after Minnesota lawmakers heard strong supportive testimony earlier last month regarding their state's CPA pathway bill.

Georgia House Bill 148 has now been sent to the governor's office, where the governor has 40 days to sign it into law. Cook said he does not expect the bill to be signed immediately. Cook noted that, similar to the approach taken by Virginia lawmakers, Georgia lawmakers positioned the new licensure rules as a workforce development initiative aimed at lowering barriers to entering the accounting profession.

Cook asserted that the legislation is likely to increase the number of people entering the accounting profession in the state. "In Georgia, we have many small cities that have been unable to find accountants to perform the required audits," Cook said in a recent interview. The legislation "won't fully solve the problem, but any improvement is progress."

Boyd Search, CEO of the Georgia Society of CPAs, expressed support for the law in a statement emailed to CFO Dive on Thursday. "The new pathways to CPA licensure and expanded practice mobility conveniences are key steps in addressing the growing demand for highly skilled accounting professionals," he said in the statement. "By providing greater access to licensure and allowing CPAs to practice freely across state lines, Georgia is positioning itself as a leader in the profession, ensuring we can continue to attract top talent from within and outside the state."

Editor's note: This story has been updated to reflect that Indiana passed its CPA pathway bill on Thursday afternoon.