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Chief
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It’s bad for current CPA’s — it was designed to limit the supply in order to increase wages.
It worked. All getting rid of it will do is decrease accounting salaries because supply will increase. Great for partners. Bad for you. That’s what’s behind the push.
It’s an artificial barrier to entry. Removing it will decrease salaries. Question is by how much.
Drop it. It's a waste of everyone's time. I took a bowling class in college to get a credit. That has helped me zero in my career. Pretty chill class though.
I actually am. I think it can weaken the prestige of the CPA and it undermines all of the people’s efforts who went out of there way to get 150 credit hours. Doctors and lawyers need postsecondary degrees to be eligible to sit for medical boards or the BAR degree. Im not sure why Accounting shouldn’t require a simple 1 year masters program to be eligible to sit for the CPA.
Ok
Why would anyone be pissed about that?
I know right
They should have dropped it a long time ago. Experience and knowledge is more important than extra credit hours. If you can pass the exams then you shouldn't need more than a bachelor's degree.
Chief
I'm fine w them dropping the 150 credits. I already have that. I want them to drop the exam requirements.
Best thing ever. As some one with a bachelor's and years of experience I think it's great.
They should have left the 120 credit requirement in place. Having 150 credits doesn’t make you pass the CPA exam any faster.
The purpose and outcome of the rule was always to exclude people, and never to elevate the quality or salaries. Florida first implemented the rule to keep retirees from starting practices there and taking market share from existing CPAs. Most people didn't take the 30 extra hours in a subject accounting related or adjacent. So no watering down is occurring by removing an artificial and expensive barrier which should have never existed in the first place.
Nobody.
You should be angry that the role ever existed, but angry they’re fixing it
The alternative is that we don’t have enough people to get the work done, which maybe can be solved by technology/AI, but we’re not quite there yet. Short term solution is to raise entry-level salaries to increase demand for the profession, which is what almost all firms are doing.
Why not cut out one year of general education out of the four years and make it a four year degree like it used to be. AI is making learning faster not slower.
It would allow more people from overseas to enter the profession. The CPA exam is still not an easy one but if that is the only barrier those with determination and seeking better opportunities will go for it given less credits required.
This sounds like a white collar race to the bottom, with the work outsourced to the lowest wage countries.
I am. They changed the requirements in 2000 right before I took the exam. It is/was a stupid money grab, but set the standard and stick with it.
Is that for all states? Looks like that 150 hrs will still be an option. Not quite sure exactly what the new system is
More businesses to the US, more accountants needed. Really simple math
I got all of my extra credits on non business electives. It’s pointless.
Reversing a major AICPA priority which was a colossal blunder. Better late than never.
The 150hr credit rule has been around for a long time, it is not a deterrent to becoming a CPA. The credit hours can be earned in any thorough undergraduate accounting program or even at a community college. Also, the claim that there is a shortage of accountants is incorrect. There are too many accountants looking for work. It is often the environment and a misunderstanding of the role of the accountant in business that drives a perceived shortage.
There is a need for a formal program to educate accountants moving from public practice to industry and another for business owners. Too often auditors and tax preparers enter industry accounting and have difficulty adjusting. Accounting departments are often mismanaged and neglected, reconciliations not completed for years, process improvements not made, teams not well coached, managed or lead. Accounting departments often have a higher rate of turnover than other departments. CEOs in many industries are outsourcing their accounting to India. However, Accounting firms are doing the same.
Accounting service firms are offering outsourced accounting services. The firms are asking accountants to remove their CPA credentials from their emails and business cards.
What is the future of the accounting profession if outsourcing to India continues and will grow? I keep seeing stories about how not enough ppl are choosing accounting; perhaps they see the writing on the wall?