The CPA Is Changing, and That Is a Big Deal for Students

For years, one of the most common questions I get from undergraduate students sounds like this:

“I am interested in accounting, but do I really have to do 150 credits to become a CPA?”

For a long time, the honest answer was yes, at least in most states. That extra 30 credits often meant a master’s degree or an additional year of school, with all the time, cost, and mental energy that comes with it. For many students, that requirement alone was enough to seriously consider other career paths that felt faster, cheaper, and more immediately rewarding.

That is exactly why recent changes to CPA licensing rules matter so much.

Across the country, states are beginning to adopt alternative pathways to CPA licensure that allow candidates to become licensed with 120 credit hours and additional work experience, often two years instead of one. This is not a theoretical idea anymore. Multiple states have already enacted this model, and others are actively moving in that direction.

Maryland is one of them.

Where Maryland Stands Right Now

In Maryland, a bill has been introduced that would allow CPA candidates to pursue licensure with 120 credit hours paired with additional work experience. As of today, that bill has not yet passed. That distinction is important. Until legislation is enacted and effective, the current rules still apply.

That said, the broader trend is hard to ignore. States are responding to a shrinking CPA pipeline, rising education costs, and competition from other business careers. The tradeoff is clear. Fewer required credits are balanced by more required experience before licensure.

If you plan to work in a state that has already adopted a 120 credit pathway, you should absolutely plan around the rules that are already in effect there. If you plan to work in Maryland or another state considering a change, you need to pay attention to timing, effective dates, and transition rules.

This is where proactive planning matters.

Why the 150 Credit Rule Was a Real Barrier

When students talk to me about the 150 credit requirement, their concerns are consistent.

First, cost. An extra year of school is expensive, especially when student loan balances already feel overwhelming.

Second, time and burnout. Many students are exhausted by the time they finish their undergraduate degree and cannot imagine signing up for another full year of classes.

Third, opportunity cost. Students see friends in other fields starting full time jobs earlier, earning money sooner, and sometimes making more in those first one to three years.

What is difficult, especially early in your career, is seeing the long game. The CPA has rarely been the highest paying option in year one. Where it shines is over a lifetime, once experience, trust, and responsibility compound. That is a hard concept to fully appreciate when graduation is approaching and bills are real.

The shift toward 120 credit pathways lowers the upfront barrier without removing the professional rigor of licensure.

What Has Not Changed at All

Even if the education requirements change, several things about building a successful accounting career remain exactly the same.

Take the CPA exam as early as you can.
The exam does not get easier with time. Passing it early frees you up to focus on your career, your clients, and your development when it matters most.

Get internships and work experience early.
The market is competitive. Showing up as a senior with nothing on your resume puts you at a disadvantage. Experience signals commitment and curiosity, not perfection.

Develop your soft skills.
As the pool of CPA candidates grows, standing out matters more, not less. If you cannot stand out on paper, you need to stand out in the interview. Communication, professionalism, and the ability to think critically still matter a great deal.

The Big Change Students Should Understand

One major shift that students should pay close attention to involves recruiting timelines.

Historically, many public accounting firms aligned internships and offers around CPA eligibility dates. Summer internships were often designed for students who would graduate with 150 credits the following spring, making them CPA eligible shortly after starting full time.

That structure caused real confusion and missed opportunities for students who did not understand the pipeline. I lived this myself early on, and I was rejected from internships simply because my timing did not line up with firm expectations.

With 120 credit pathways, that timeline moves earlier and aligns more naturally with a traditional undergraduate experience. Firms no longer have to assume you will spend an extra year in school somewhere you might not even be planning to attend.

For many students, this is a meaningful improvement in access and clarity.

A Word on Graduate Education

It is still worth saying this out loud. The market may continue to reward deeper education in certain paths, especially in advisory roles, specialized tax work, leadership positions, and academia.

As an adjunct professor, I will also be candid that it is very difficult to teach in higher education without an advanced degree. Graduate programs can offer strong networking, technical depth, and professional development when they are pursued intentionally.

The key difference now is choice. A fifth year of school can be a strategic decision, not a mandatory hurdle.

What You Should Do Next

If you are a student considering accounting or already on that path, here is the takeaway.

Check your state’s CPA requirements regularly. Do not rely on outdated assumptions or secondhand information.
Understand where you want to work and where you want to be licensed.
Plan your education, internships, and exam timing proactively, not reactively.

The profession is changing because it has to. That creates opportunity for students who are paying attention.

If you are thoughtful, informed, and willing to act early, this moment can work in your favor.