The Ohio Society of CPAs announced yesterday that their state is leading the way in alternative pathways to CPA licensure, officially. Here’s what they said:
Ohio Governor Mike DeWine signed House Bill 238 into law on Jan. 8, which includes OSCPA-backed legislation that will position Ohio as a national leader in addressing the dire CPA shortage.
Effective in 90 days, qualified CPAs from out of state can work in Ohio. This improves existing interstate mobility laws by evaluating candidates on their individual professional status rather than what state they are licensed in. Many states are also working to adopt similar language to Ohio.
Effective January 1, 2026, two pathways to CPA licensure will be available:
- A master’s degree, completing the required accounting concentration of coursework, one year of experience and passing the CPA Exam
- A bachelor’s degree, completing the required accounting concentration of coursework, two years of experience and passing the CPA Exam
The new law addresses some big challenges the profession is now facing: the shrinking population of CPAs caused by retirements and too few new licensees, and strengthening existing interstate mobility laws to protect current licensees in the future.
When the Minnesota Society of CPAs “upset the applecart” in early 2023 by being the first state society to loudly promote an alternative to the 150-hour rule the AICPA came out in strong opposition to any alternate pathways to licensure that would make 120 hours of education and two years of experience an option for aspiring CPAs in their state. The foundation of the AICPA argument was that any such legislation would risk mobility and such proposals “would undermine the profession and the CPA license.” The Ohio legislation laughs in the face of said argument evidently.
This is exactly what the AICPA was afraid of. “What exists is a very delicate system of agreement and trust,” said AICPA CEO of Public Accounting Sue Coffey to Financial Times in 2023 for their article ‘US accounting profession rethinks entry rules amid staffing crisis.’ “This has been my challenge with Minnesota. It just takes one to upset the applecart and that could upend mobility across the country.” We still love you, Sue. But you lost.
Rather than alternate pathways the AICPA has been promoting its Experience, Earn, and Learn program. When the program first launched it was open only to registered accounting employers but was recently opened up to any accounting graduate who is “earning a paycheck from an employer not associated with the program.” See: The Powers That Be Are Getting Desperate For People to Do This Experience and Learn Thing.
“Ohio has forged a new path forward and the entire profession will benefit,” said OSCPA. “We expect other states will follow our lead.”
Absolutely fantastic! The “take 30 extra credits in ANYTHING” was the most asinine plan ever concocted. How it ever got implemented to begin with is beyond comprehension.
Because the boomers who run (and are currently looting) the profession thought the additional education would make the CPA more pre$tigiou$. Except firms never intended to pay a premium for this thus the situation we find ourselves in now.
I dug into the history of 150 hours a while back, the AICPA actually said they hoped the additional units would create more well-rounded CPAs lol.
“Students should come to understand humankind, its history, the philosophies by which it lives, the languages in which it communicates, and the arts and sciences that enrich its existence. Emphasis should be on developing analytical abilities and problem-solving skills, as well as perception, judgment, and integrity.”
As a late boomer CPA I thought 159 was a dumb idea when it was proposed, spoke against it, and voted against it. As such I was shut out of the state CPA society fir years. It was always a big firm proposal. And it has failed miserably.
I have no doubt they justified it that way, and I’ve also seen other sources, e.g., CFO . com, stating that “The argument was accounting students needed the extra hours to keep up with the evolving regulations and audit standards.”
But both justifications fall flat when you can fulfill the extra 30 with absolutely any type of credits. If a student decides to get a second major in “phys ed mgt & admin,” for example, that doesn’t provide any education of “humankind, its history,” etc., nor does it give them a better understanding of “evolving regulations and audit standards.”
There must have been some serious groupthink goin’ on to actually pass that rule. They could have used a “devil’s advocate” in the room when the 150 idea was floated.
It’s not Boomers, its Big 4. Portability means very little to smaller regional firms. The youngest of the Boomers will turn 60 this year, many Boomers are partners at smaller regional firms who are getting slaughtered. From the beginning the 150 hours was a ploy to reduce the number of CPAs. The only ones who benefit from a smaller number of CPAs in the US are the larger firms who have been selling this profession down the road by offshoring for decades.
150 hours was a bad idea 15 years ago and it remains a bad idea today. Switching from 120hours and 2 years of experience to 150/1 was a drastic lowering of the standard that simultaneously made the profession artificially more expensive to enter.
It’s long past time for the AICPA to lead on this issue or at least get out of the way.
The real untold story is how a mediocrity like Barry Melancon hijacked the AICPA for two decades. A real nincompoop, and a tribute to CPA’s being unable to mange their own practice. “Trusted Advisor”?