What’s required to become a CPA? It depends on the path you choose.
In 2025, the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) approved an alternative pathway for becoming eligible to sit for the CPA exam. Depending on your jurisdiction, your options may include:
- Traditional 150 credit hour pathway (master’s degree or equivalent credits) with an accounting concentration plus one year of professional experience
- New 120 credit hour pathway (bachelor’s degree) with an accounting concentration plus two years of professional experience
Joe Schroeder, chairperson of Graduate Accounting Programs, a professor of accounting, and PwC Faculty Fellow at the top-ranked Kelley School of Business, recommends that you consider these important factors as you make your decision:
Go beyond CPA requirements: Get real-world experience, master AI for accounting, and become a data analytics expert
“If you want to be a leader in the accounting profession, then you need to invest in yourself,” said Joe Schroeder. “Keep in mind—the CPA is a minimum competency exam—and the 120-hour pathway is the educational bare minimum. Yes, the 120-hour pathway can work; however, a master’s credential significantly matters for your long-term career advancement. You need to own your career goals and explore where you want to be in the next 20 or even 40 years,” he said.
It’s not if, but when: The 150-hour pathway is valuable CPA exam prep—and more
“The value proposition of the Kelley specialized master’s degrees is tremendous, and you’re going to need a graduate credential at some point in your career—so the question becomes whether to earn it now or later,” Schroeder said.
Schroeder pointed out that pairing any undergraduate degree (including nonbusiness backgrounds) with the 3/2 MBA or MS in Accounting with Data and Analytics (MSADA) can expand your expertise well beyond the minimum requirements measured by the CPA exam. Watch Professor Schroeder explain more of the programs’ details.
“If you’re an undergraduate finance major, earn the MSADA to broaden your skills,” Joe recommended. “If you’re an undergraduate accounting major, add the MS in Finance, because then you not only learn how to prepare the reports, you learn how to use them.”
The choice between 150 or 120 credit hour paths to the CPA exam poses career implications for the long term. Gaining graduate-level business expertise bolsters your ability to get the outcome you want; “You’re better positioned for success on the CPA exam,” Schroeder said.
“With the 150 credit hour pathway, you can start sitting for the CPA exam during the spring semester of your one-year master’s degree, then knock out the rest over the summer,” Schroeder pointed out. “For those who choose the 120 credit hour pathway and head straight into the workplace, it can present a formidable challenge to balance a new career with finding time to study.”
Develop a strategic command of AI and accounting
As AI and technology rapidly change the business landscape, the need for accounting leaders with mastery of these tools is evident.
“I’m hearing firms say they want professionals with critical thinking skills who can be their resident expert on AI and technology tools,” Schroeder said. “Kelley Graduate Accounting Programs are focused on experiential learning, on data analytics, and artificial intelligence in the context of accounting.” Schroeder continued, “Students are doing international field studies and local field consulting projects—it’s learning by doing and consulting with real-life clients over complex business issues. It’s an education that’s transformational—the kind that sets you up better to start your career.”
Watch accounting professor Brian Williams share more about the cutting-edge research at the intersection of AI and accounting and beyond, happening now at Kelley.
CPA requirements aside, the value of a Kelley master’s sets you apart
Finally, it’s important to remember why the 150 credit hour rule was initially established: to bolster the development of critical thinking skills and broad-based thinking that was lacking among CPAs at the time. The 120 credit hour pathway eases entry to the accounting profession and removes perceived barriers to the field that may be responsible for a downward trend of accounting majors at many universities. But the top-ranked Kelley school isn’t experiencing this downward trend.
“Kelley accounting major numbers are up—we’ve always been about value creation,” Schroeder explained. “While some master’s programs across the country approached the 150 credit hour requirement as a 30 credit hour tack-on, the Kelley School of Business designed the 3/2 MBA program and MS in Accounting with Data and Analytics program from the beginning to be value-enhancing degrees.”
Professor Schroeder believes the value of the Kelley specialized accounting master’s degrees is more relevant than ever. “I’m excited—because for the first time since the 150 credit hour rule went into effect, students entering Kelley Graduate Accounting Programs are undoubtedly doing so for the right reasons—because they want to enhance their human capital and they want to become the best version of themselves,” Schroeder concluded.
Note: As states newly approve exam eligibility requirements, check NASBA’s exam eligibility requirements by jurisdiction for up-to-date criteria.
Begin your accounting career ready to lead with a Kelley MSADA or 3/2 MBA. Reach out to us at ksbgrad@iu.edu to ask questions or learn how to apply. We’re eager to discuss how a Kelley specialized master’s degree can equip you to achieve your career goals.
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