How to become a CPA in India? It’s a question every finance and accounting enthusiast asks who wants to build professional credibility. To become a CPA in India, educational, examination, and licensing requirements are to be met. Completing a bachelor’s degree in commerce or related fields with an emphasis on accounting and finance is necessary because it lays the foundation for eligibility to be a CPA. After all, your educational qualifications are in place, you can enroll in the CPA program under the American Institute of Certified Public Accountants (AICPA).
For this certification, you need to pass four rigorous exams: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). All these tests range over a broad area of knowledge and skills and need to be cleared within an 18-month time frame. After meeting these academic and professional requirements, you can apply for a CPA license through the relevant state board in the United States. Maintaining this license requires ongoing professional education to stay updated with industry developments. A Certified Public Accountant, or CPA, is an internationally recognized designation indicating expertise in the field of accounting and finance. For students and professionals from India, obtaining a CPA gives them international opportunities for jobs with competitive salaries.
What is a CPA?
A CPA is a professional certification issued by the American Institute of Certified Public Accountants (AICPA). It demonstrates that a professional has satisfied all the education, examination, and experience requirements related to accounting skills. Most CPAs work in auditing, tax planning, financial reporting, and management consulting.
Why Become a CPA in India?
Becoming a CPA in India offers a gateway to global career opportunities in accounting and finance. With increasing cross-border trade, Indian professionals with international credentials like CPAs are in high demand.
Benefits
- Global Recognition: CPAs are respected worldwide, enabling Indian professionals to work with multinational firms.
- Higher Salaries: CPAs in India earn significantly more than non-CPA counterparts.
- Diverse Opportunities: US CPA holders can explore careers in auditing, taxation, advisory services, and corporate finance.
- Career Growth: CPA enhances your professional credibility and boosts your chances of promotions in global organizations.
What Does a CPA in India Do?
CPAs in India perform various critical roles that align with global accounting and financial standards. Their expertise is essential for businesses operating internationally.
Responsibilities:
- Auditing and Assurance: Conduct audits ensuring compliance with international financial standards.
- Taxation: Advise on tax strategies to minimize liabilities and ensure compliance.
- Financial Analysis: Analyze financial data for decision-making.
- Management Consulting: Offer solutions for business growth and efficiency.
- Forensic Accounting: Investigate financial discrepancies and fraud.
How to Become a CPA in India
A Certified Public Accountant (CPA) is one of the most prestigious achievements in accounting, auditing, and finance, as it opens up doors to a global career. CPAs are in high demand by multinational corporations, consulting firms, and public accounting firms due to their expertise and international recognition. However, it requires dedication, a clear understanding of the process, and adherence to specific steps to achieve this designation. Below is a step-by-step guide on how to get started with your journey of becoming a CPA.
Obtain a Bachelor’s Degree
The basis for attaining the USA CPA qualification is education. One needs to hold a degree in commerce or its equivalent. Although other fields are considered, one still holds on to one’s background in accounting or finance to ensure that he has met the academic requirements. It is also important that a student’s degree carries coursework similar to the CPA requirement such as financial accounting, auditing, taxation, and business law.
Take the Required Credit Hours
Each state in the United States has its own requirements for the number of credit hours required to be eligible for the CPA. Most candidates will need to have 120 to 150 credit hours of education. This can include graduate-level courses or additional certifications if your undergraduate program does not meet the required credits. Make sure your academic credentials align with the state board you wish to apply through, as these requirements vary.
Register with NASBA
The next step would be to get registered with the National Association of State Boards of Accountancy (NASBA). NASBA is responsible for handling the application for the US CPA exam. During your registration, you will be required to select a U.S. state board that suits your academic qualifications and your career objectives. Be sure to read the requirements of the state board carefully, as the application will only be accepted if all the requirements are met.
Start CPA Exam Preparation
CPA USA exams have strict requirements. Therefore, prepare well for them. Choose a good CPA review course with high-quality study material, practice tests, and clear guidance. Many candidates opt for courses like Becker, Wiley, or Gleim. Create a personalized study schedule aligned with your timeline, based on each of the exam sections.
Clear CPA Exams
The CPA certification requires passing four sections of the Uniform CPA Exam:
- Auditing and Attestation (AUD): Tests knowledge of audit procedures, internal controls, and ethics.
- Business Environment and Concepts (BEC): Covers business operations, corporate governance, and economic concepts.
- Financial Accounting and Reporting (FAR): Examines financial statement preparation, accounting standards, and transactions.
- Regulation (REG): Focuses on tax laws, ethics, and business law.
Acquire Relevant Work Experience
After clearing the CPA exams, most state boards mandate candidates to experience 1-2 years of relevant work experience. The experience has helped me to be supervised by a licensed CPA and to expose a candidate to practical accounting, auditing, taxation, or financial analysis. It is a pivotal step that demonstrates your practical skills and readiness to handle challenges in real-world situations.
Apply for a CPA License
Once you qualify based on educational, examination, and experience criteria, you are eligible to obtain a CPA license from the state board in which you are registered. The procedure of licensing is sending proof of education, exam results, and experience, along with an application fee. After all the procedures are followed, you become a licensed CPA.
Maintaining CPA Certification
The CPA is not the culmination of your career. To keep your license current, you are required to satisfy Continuing Professional Education (CPE) requirements. These requirements make sure that CPAs are kept abreast of all new laws and regulations and up-to-date in their field of practice. Each state has its own CPE requirements, although most require either annual or biennial updates.
What is the Structure of CPA India?
The USA CPA exam consists of four rigorous sections covering diverse areas of accounting and finance.
| Section | Duration | Content Covered |
| AUD (Auditing) | 4 Hours | Audit procedures, ethics, and standards |
| BEC (Business Environment & Concepts) | 4 Hours | Corporate governance, economics |
| FAR (Financial Accounting & Reporting) | 4 Hours | Financial reporting frameworks |
| REG (Regulation) | 4 Hours | Taxation and business law |
Eligibility and Registration for the CPA Exam in India
The CPA exam is the most prestigious certification offered by the American Institute of Certified Public Accountants (AICPA). In India, a candidate must satisfy eligibility requirements and get registered to take the CPA exams. Here are the eligibility criteria and steps to register for the CPA exams in India.
Eligibility for CPA Exam in India
Candidates must meet the academic and other eligibility criteria set by their chosen U.S. state board to sit for the CPA exam. Though the requirements are slightly different in every state, the general criteria include the following
- A bachelor’s degree, preferably in commerce, accounting, or finance, is mandatory. Degrees in related fields may also be considered if they meet the course requirements.
- Candidates must complete 120 credit hours to be allowed to sit for the CPA exam. Most undergraduate programs in the United States are structured to meet this prerequisite. In India, however, where bachelor’s degrees typically award fewer credit hours, students might need to enroll in additional classes.
- 150 Credit Hours Requirement for Licensure, while 120 credit hours would suffice for completing the CPA exam, most state boards require 150 credit hours to gain a CPA license. Indian candidates can bridge this gap by taking:
- A master’s degree in accounting, finance, or business.
- Additional certifications or diploma courses, such as Chartered Accountancy (CA) or Master of Business Administration (MBA), would provide excess credits.
- Candidates who do not have enough credits can join certain courses that can make up the difference. These courses must be related to accounting, taxation, auditing, or business law according to the requirements of the U.S. State Board.
- English Language Competency: Since all the CPA exams are given in English, strong English language proficiency is also essential for the candidates to understand the material and answer questions accordingly.
How to Register for CPA Exams in India
Registration for the CPA exam requires a lot of attention to detail and adherence to the guidelines provided by NASBA. Below is a step-by-step guide to help you register for the CPA exam in India.
Create a Profile on the NASBA Website
Visit the NASBA website and create a personal profile.
Provide accurate personal information, including your name, contact details, and educational background. Submit Educational Credentials for Evaluation:
Arrange for your Academic Transcripts and Certificates
The agency will evaluate your educational qualifications to see if they meet the credit hour requirements of your selected U.S. state board.
Compare
Compare the requirements of several state boards and select the one that best matches your academic record and professional objectives. Some state boards have extra requirements, like specific courses or experience.
Payment
Pay the Registration Fees and Obtain the Notice to Schedule (NTS).After your application is approved, you need to pay the registration fees to NASBA. After paying, you will receive the Notice to Schedule (NTS), which is necessary to book your exam slots.
Book Your Exam Slots via Prometric
Use your NTS to book your exam dates and locations through the Prometric website. Prometric testing centers are available in India in major cities like Delhi, Mumbai, Bangalore, Hyderabad, and Chennai, ensuring accessibility for candidates.
Prepare for the Exam
Once registered, begin your exam preparation. Utilize CPA review courses, practice tests, and study materials to ensure success in all four sections of the CPA exam.
How to Become CPA in India FAQs
How long does it take to become a CPA in India?
It typically takes 1-2 years to complete the CPA exams and gain the required experience.
Can Indian students take the CPA exams in India?
Yes, exams are conducted at Prometric centers across India.
What is the cost of becoming a CPA in India?
The overall cost, including exam fees and study materials, ranges from INR 2-3 lakhs.
Is CPA equivalent to CA in India?
No, CPA is an international certification, while CA focuses on Indian standards.
How can I meet the 150-credit hour requirement?
You can pursue additional certifications or master’s courses to meet this requirement.
