Wednesday, October 2, 2013
Understanding CPE Credits
Certified
public accountants (CPAs) go through a rigorous training and certification
process to earn the right to practice in their chosen specializations.
Interestingly, the path of learning seemingly never ends for a CPA. Aside from
formal schooling and practical experience, CPAs must undergo continuing
professional education (CPE) courses to retain their license.
In most U.S. states, CPAs need to acquire a minimum number of
CPE credits before they can renew their license. A credit is typically
equivalent to 50 minutes of professional education. Some states require that
CPAs complete 80 hours within two years, while other states require 120 hours
to be completed within a three-year period.
After completing the course, the participant will receive certain
credits based on the number of hours completed. CPE courses may be taken in a
traditional classroom setting, although a growing number of accounting
professionals opt for online courses conducted through live webinars or via
correspondence. Online CPE courses certainly make sense for busy accountants
who need to juggle multiple work tasks and barely have the time nor inclination
to shuttle from work to school on a daily basis.
CPE courses for accountants are available through organizations,
but these classes are often expensive. Some professionals consider online
courses to be more affordable.
Tuesday, October 1, 2013
Getting CPE Credits for CPAs
If you're
a Certified Public Accountant (CPA) and a member of the American Institute of
CPAs or AICPA, you inevitably have to take a continuing professional education
(CPE) program. This will enable you to earn the required credits in order to
continue with your practice. Such a program, as specified by the National
Association of State Boards of Accountancy or NASBA, helps regulate the
accounting profession in each state.
How many
CPE credits do you need to acquire, and how often do you need to take them?
Requirements may vary from state to state, but it's usually around 20 hours
worth of CPE credits per year, with at least 120 hours for a three-year period.
That's around 40 hours of CPA credit per year on the average. Other states
require accountants to take CPE courses on Ethics once every two years.
Most
states do not have approval processes for CPE sponsors but do specify minimum
guidelines in order to consider such sponsors valid. Others require
registration to become Quality Assurance Service (QAS) sponsors, although State
Boards have the final say on the validity of courses for CPE credits. Those who
plan to take such courses must first verify with their State Boards to ensure
that the courses are acceptable and can be credited.
The good
news is that CPE programs can
be taught through interactive online or self-study courses. Whichever kind of
study scheme you choose, be sure to choose a course provider that complies with
state rules and regulations.
