Are you on the path to becoming a Certified Public Accountant (CPA) in the Volunteer State? Amid a national CPA crisis, the timing couldn’t be more perfect for aspiring accountants in Tennessee. A Fortune report highlights a critical shortage in the accounting sector, with firms across the country facing challenges in hiring CPAs. This shortage is an open door for those aiming to enter the field in Tennessee.
Here’s the exciting part:
Tennessee’s approach to CPA licensure is tailored for your success. The state offers flexible work experience requirements and allows candidates to take the CPA exam within 200 days of completing 150 credit hours.
But wait, it gets better.
The range of industries in Tennessee where you can gain relevant experience, from finance to consulting, means your career opportunities are vast and varied.
So, what’s the next step? As you embark on the CPA application process and fulfill the necessary qualifications, remember that this is a golden opportunity to join the accounting profession. With the current high demand for CPAs, choosing to pursue this career in Tennessee could be your most strategic career decision.
Steps to Get a CPA License in Tennessee
- Fulfill the education requirements, including 150 credit hours with specific coursework in accounting and business.
- Gain the necessary work experience in a relevant field.
- Successfully pass all four sections of the CPA Exam with a CPA review course for better preparation.
- Complete the AICPA Ethics Exam.
- Accurately complete and submit all required CPA license application paperwork.
- Pay the Tennessee CPA license application fee.
CPA Licensure Requirements in Tennessee
General Requirements
- Age and Residency: There is no minimum age requirement, and U.S. residency is not required. State residency is also not a prerequisite for CPA licensure in Tennessee.
- Ethics Exam: Candidates must pass the AICPA Ethics Exam, which costs $149 or $119 for AICPA members. This exam must be completed within two years of the certification application.
- CPA Exam Fees: The total cost for taking all four sections of the CPA exam in Tennessee is $743, plus an initial application fee of $155. The re-examination registration fee varies between $75 and $120, depending on the number of sections.
- Additional Requirements: Candidates must pass all four sections of the CPA exam with a score of 75% or higher and complete verified accounting work experience. All required CPA license application paperwork must be filled out and submitted, along with the CPA license application fee.
Education Requirements
- Degree and Credit Hours: Candidates must hold a Bachelor’s degree or higher and complete 150 credit hours. They may sit for the CPA exam within 200 days of completing this requirement.
- Accounting Courses: A minimum of 24 semester hours in accounting courses is required, with at least 12 hours from upper-division level courses.
- Business Courses: Candidates must complete 24 semester hours in business courses, with at least 12 hours from upper-division level courses. These may include business law, algebra, calculus, statistics, probability, economics, finance, management, marketing, computer/information systems, ethics, and business communications.
Work Experience Requirements
- Duration and Type of Experience: At least 2,000 hours of experience, earned in no less than one year and no more than three years, is required.
- Scope of Experience: Qualifying experience includes providing services or advice using accounting, attest, management advisory, financial advisory, tax, or consulting skills. Employment in industry, government, academia, or public practice is acceptable.
- Time Frame: The experience must have been accrued within the ten years immediately preceding the application for licensure.
- Special Requirement for Signing Reports: Licensees who sign reports on financial statements on behalf of a firm must have provided two years of experience in the last ten years in compilations, reviews, and audits.
Ethics Course and Exam Requirements
In Tennessee, as part of the CPA licensure process, candidates are required to successfully complete the AICPA Ethics Exam. This requirement underscores the importance of ethical standards and practices in the accounting profession, ensuring that all CPAs adhere to the highest level of professional integrity.
- Purpose: The AICPA Ethics Exam is designed to educate and evaluate candidates on the professional and ethical standards of the accounting profession. It focuses on the AICPA Code of Professional Conduct and the application of ethical judgment in accounting practices.
- Format: The exam typically consists of multiple-choice questions that test the candidate’s understanding of ethical principles and their application in various professional scenarios.
- Pricing: The full price for the AICPA Ethics Exam course, including the exam, is $299. However, AICPA members are eligible for a discounted rate of $245. This discount is an exclusive benefit for members of the AICPA.
Tennessee CPA Exam Fees
Navigating the financial aspects of the CPA licensure process in Tennessee involves understanding the various fees associated with the CPA Exam and licensure. These fees are an essential part of the process, covering everything from the initial evaluation of your educational qualifications to the actual exam sections.
Education Evaluation Application
- Purpose: Before applying for any section of the CPA Exam, candidates must first be deemed eligible. The Education Evaluation Application is a critical step in this process, determining if you meet the educational requirements needed to take the CPA Exam in Tennessee.
- Fee: The fee for the Education Evaluation Application is $90.00. This fee covers the cost of reviewing and verifying your educational credentials to ensure they align with Tennessee’s CPA Exam requirements.
- Once deemed eligible, there is an initial application fee that is $100.
Exam Section Application
- Application Process: Once your eligibility for the CPA Exam is confirmed, you can apply for specific exam sections. It’s important to note that you can only apply for one exam section per application.
- Advice for Candidates: You are advised to apply for an exam section only if you are ready to take it. This is because the Notice to Schedule (NTS), which you will receive upon application approval, is valid for a limited time. You must take the exam section listed on the NTS within this timeframe.
- Fee: The fee for each Exam Section Application is $344.80. This fee is applicable for each section of the CPA Exam you apply for. It’s crucial to plan your exam schedule carefully to avoid losing these fees if you’re unable to take the exam within the validity period of your NTS.
| Education Evaluation Fee | $90 |
| Each CPA Exam Section | $344.80 |
| Application Fee: | $100 |
CPA Evolution and Exam Changes in 2024
The CPA profession is undergoing a significant transformation with the CPA Evolution, a joint initiative by the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA). This initiative is set to bring about substantial changes to the CPA licensure model, with the aim of better aligning it with the rapidly evolving skills and competencies required in the accounting profession. These changes are scheduled to take effect in 2024 and will impact CPA candidates nationwide, including those in Tennessee.
General Changes in the CPA Evolution
- Updated Exam Structure: One of the most notable changes is the restructuring of the CPA Exam. The new exam will focus more on technology and analytical skills, reflecting the changing landscape of the accounting profession.
- Core and Discipline Model: The exam will consist of a core section covering essential skills and knowledge areas such as accounting, auditing, tax, and technology. In addition to the core, candidates will choose a discipline in which to demonstrate deeper skills and knowledge. These disciplines are likely to include areas like business analysis and reporting, information systems and controls, and tax compliance and planning.
- Enhanced Focus on Technology: Recognizing the increasing role of technology in accounting, the CPA Evolution will integrate more technology-related content throughout the exam, ensuring that new CPAs are well-equipped to handle the digital aspects of the profession.
Specifics for the State of Tennessee
- State Board Adaptations: The Tennessee State Board of Accountancy is expected to adapt its licensure requirements to align with the new CPA Evolution model. This may include updates to education and experience requirements to ensure they incorporate the skills and knowledge areas emphasized in the new exam structure.
- Educational Curriculum Changes: Educational institutions in Tennessee are anticipated to revise their accounting curricula to prepare students for the updated CPA Exam. This includes integrating more technology and data analytics content into accounting courses.
- Guidance for Candidates: The Tennessee State Board of Accountancy and local accounting bodies will likely provide resources and guidance to help candidates in Tennessee navigate the changes. This may include informational sessions, updated study materials, and support for understanding the new exam format.
Impact on CPA Candidates
- Preparation for New Exam: Candidates planning to take the CPA Exam in 2024 and beyond will need to prepare for the updated format. This includes gaining proficiency in the core areas as well as selecting and preparing for one of the new disciplines.
- Continuous Learning: The CPA Evolution emphasizes the importance of continuous learning, especially in areas like technology and data analytics. Candidates and current CPAs in Tennessee will need to engage in ongoing education to stay current with the evolving demands of the profession.
Local CPA Organizations in Tennessee
Tennessee Society of Certified Public Accountants (TSCPA): TSCPA is a professional organization that provides support, education, and advocacy services to CPAs in Tennessee. They offer resources for CPA exam candidates and continuing education for professionals.
The TSCPA has chapters in Nashville, Chattanooga, and Knoxville.
Tennessee Exam Information and Resources
For more details, please contact:
Tennessee State Board of Accountancy
500 James Robertson Parkway, 2nd Floor
Nashville, TN 37243-1141
Email:[email protected], [email protected]
Phone: 615-741-2550
Fax: 615-532-8800
FAQs
To be eligible for CPA licensure in Tennessee, candidates must have a Bachelor’s degree or higher and complete 150 credit hours. This includes 24 semester hours in accounting courses with at least 12 hours at the upper-division level, and 24 semester hours in business courses, also with at least 12 hours at the upper-division level.
Candidates must accrue at least 2,000 hours of relevant work experience, which can be earned in no less than one year and no more than three years. This experience can be in various fields, including accounting, attest, management advisory, financial advisory, tax, or consulting, and can be gained in industry, government, academia, or public practice.
Yes, passing the AICPA Ethics Exam is a mandatory requirement for CPA licensure in Tennessee. The course and exam cost $299, with a discounted rate of $245 for AICPA members. Candidates must complete this exam within two years of their certification application.
The Education Evaluation Application fee is $90.00. Once eligibility is confirmed, candidates must pay $344.80 for each Exam Section Application. Additionally, there are fees associated with the AICPA Ethics Exam and the CPA license application.
Starting in 2024, the CPA Exam will undergo significant changes as part of the CPA Evolution initiative. The exam will focus more on technology and analytical skills, and will consist of a core section covering essential skills and knowledge areas, plus a discipline-specific section where candidates can demonstrate deeper skills in a chosen area.
For detailed information and resources, candidates can visit the Tennessee State Board of Accountancy website, the National Association of State Boards of Accountancy (NASBA) Tennessee page, the American Institute of CPAs (AICPA) website for CPA Evolution details, and the Tennessee Society of Certified Public Accountants (TSCPA) website.
Bryce Welker is a regular contributor to Forbes, Inc.com, YEC and Business Insider. After graduating from San Diego State University he went on to earn his Certified Public Accountant license and created CrushTheCPAexam.com to share his knowledge and experience to help other accountants become CPAs too. Bryce was named one of Accounting Today’s “Accountants To Watch” among other accolades. As Seen On Forbes
