At a Glance

  • The Washington State Board of Accountancy has adopted new rules that provide an alternative path to obtaining a Certified Public Accountant (CPA) license that does not require completing 150 college credits—which typically equates to five years of higher education or university study, according to the Washington Society of Certified Public Accountants (WSCPA).
  • The new path replaces the previously required additional year of university education with an additional year of work experience, allowing students to obtain a license after earning a bachelor's degree, passing the CPA exam, and completing two years of work experience. According to Mike Nelson, WSCPA's government affairs manager, the change could take effect as early as next month, 31 days after the rule change is submitted.
  • "There's clearly excitement among students and [CPA] candidates," Nelson said in an interview on Friday, noting that the new path's requirements could take effect around Thanksgiving. If the timeline holds, "students can enjoy a small vacation and then return to school, realizing that once they earn a bachelor's degree, they can sit for the [CPA] exam."

Deep Dive

Washington makes at least 23 states that have implemented new rules or laws offering alternative paths to CPA licensure that do not include 150 college credits—a requirement critics have cited as a factor contributing to the accounting talent shortage. New York has passed CPA pathway legislation, but the bill is still awaiting Governor Kathy Hochul's signature, according to the state legislature's website.

"I'm glad to see this," Robert Pawlewicz, an assistant professor of accounting at the University of Richmond, said in a Friday email regarding Washington's action. "I count Washington as the 24th state (including New York, although the bill there hasn't been signed into law yet)... Michigan introduced their bill in the state legislature in September, so they could likely complete it this year as well."

Washington is one of the few states that completed the final change through the accounting board rather than directly through the state legislature. Even so, it still required action by Washington lawmakers last year, who passed a bill amending the state's public accountancy act (HB 1920-2023-2024), according to Nelson.

Nelson said that before the legislative change, the accounting board controlled CPA licensing rules related to education and examination, but not the experience component. Once the law transferred control of that third component to the accounting board, it was able to make changes to add the new licensing path.

"We realized change might be coming, so we discussed with the legislature placing all three [requirements] under the accounting board," Nelson said, noting the move was to speed up the process because changes through Washington's part-time legislature could be slow. "You have a very short window of time to get anything done."

Overall, Washington's new rules provide three paths to CPA licensure. In addition to the new path requiring two years of experience, by 2035 the state will effectively retain the existing 150-hour path (though slightly revised), according to a WSCPA blog post. That path now requires candidates to complete a bachelor's degree plus 30 semester hours, one year of experience, and pass the CPA exam. The third path will require a graduate degree (such as a master's degree), one year of work experience, and passing the CPA exam.

For more on CPA licensing changes, see CFO Dive'srelated tracker。