New Jersey eases CPA licensing requirements, expands pathway for candidates and out-of-state accountants
TRENTON, N.J. — Legislation sponsored by Assemblywoman Aura Dunn that revises New Jersey’s requirements for certified public accountant licensure was signed into law Tuesday, a change supporters say will help address hiring shortages and make it easier for qualified professionals to work in the state.
Gov. Phil Murphy signed the bill Tuesday before Mikie Sherrill took office.
“By creating more opportunities for college graduates to earn their CPA license and encouraging out-of-state CPAs to work in New Jersey, this new law will help businesses find the talent they need to be successful. More broadly, this is about building a stronger economy and connecting more people to rewarding careers,” Dunn (R-Morris) said.
The change comes amid workforce concerns cited by advocates for the accounting profession. A New Jersey Society of Certified Public Accountants survey of 187 businesses found that 66% struggled to fill accounting positions over the past year and 47% said the staffing difficulty posed a moderate or high risk to their operations.
Under previous state requirements, CPA candidates had to complete at least 150 semester hours of education — typically the equivalent of a master’s degree — along with one year of work experience and a passing score on the uniform CPA exam. Under the new law, A5598, candidates with bachelor’s degrees may also qualify if they have two years of work experience and pass the exam.
The law also changes how out-of-state CPAs can practice in New Jersey. It removes the requirement to meet standards established by the national accountancy board for out-of-state CPAs seeking to work in New Jersey, the bill sponsor said. Instead, an out-of-state CPA must hold a valid license from another state, pass an exam and have one year of experience to practice in New Jersey without obtaining a license from the New Jersey State Board of Accountancy, according to the measure.
“The financial services industry is changing with advancements in technology and policy shifts. This law allows New Jersey to evolve with the industry and minimize hurdles for CPA licensure so that we have qualified people who can meet the increasing demands of the profession,” Dunn said.
