Who Needs a California CPA License?
Anyone who wants to work as a CPA (Certified Public Accountant) in the state of California must be licensed by the California Board of Accountancy (CBA). You do not need to be an American citizen or even a resident of California to be licensed as a California CPA.
What Does the Licensing Process Involve?
The following is an overview of California�s CPA licensing process. You�ll need to access the CBA website for detailed instructions. The process doesn�t begin in earnest until you have met certain education, testing, and experience requirements. Take a look at the necessary steps:
1.������ Verify completion of at least 150 semester hours of undergraduate study that meet the following criteria:
-� � � �24 hours of certain accounting subjects,
-������ 24 hours of approved business subjects,
-������ 20 hours of accounting, and
-������ 10 hours of ethics.
Simply having a bachelor�s degree isn�t sufficient unless the coursework meets the above criteria.
2.������ Establish an online account with the CBA and have every educational institution you’ve attended forward official, sealed transcripts to the board.
3.������ Apply to sit for the American Institute of Certified Public Accountants� standardized CPA exam. You will receive your Authorization to Sit (ATT) once your transcripts have been received and approved by the CBA.
4.������ Sign up for your NASBA Notice to Schedule (NTS) upon receipt of your ATT.
5.������ Schedule yourself to take the CPA exam at a specific testing center upon receipt of your NTS. You can take the four exam sections one at a time over an extended period. You must pass all four sections before you can apply for your license.
6.������ Fulfill the work experience requirement by working under a California licensed CPA for a minimum of one year, including at least 500 hours of auditing or attestation. Obtain the necessary documentation from your supervisor(s)—Certificate of General Experience (CGE) and Certificate of Attest Experience (CAE)—and submit to the CBA.
7.������ Take the CBA�s California Professional Ethics Exam (PETH).
8.������ Complete and submit your CPA license application along with the required photo, fingerprint packet, criminal conviction disclosure, and application fees.
9.������ Consider obtaining a surety bond to demonstrate your commitment to ethical business conduct.
Why is a Surety Bond Recommended?
The kind of work that CPAs do requires the highest level of trustworthiness and ethical conduct. Purchasing one of the types of surety bonds classified as fidelity bonds provides financial protection for your clients and for yourself.
For example, you might decide to purchase a fidelity bond to protect yourself against fraud, theft, or embezzlement by your employees with access to payroll funds or other client assets. Such bonds can cover specific named employees or provide blanket coverage for all employees or a class of employees.
Being bonded gives you a competitive advantage in marketing your services. The fact that you voluntarily purchased such protection makes a powerful statement about your commitment to your clients.
How Does It Work?
Unlike most surety bonds, which protect the state and/or consumers but not the bonded individual, a fidelity bond is actually a form of insurance policy. If you purchase a fidelity bond, the company that underwrote and issued it will pay any valid claim filed by you or by a client who has suffered a covered financial loss stemming from the dishonest or unethical actions of an employee.
In some cases, criminal charges must be filed or the employee must be convicted before a claim will be paid.
Understanding How Surety Bonds Work for CPA Licensing
The cost of a fidelity bond is a small percentage of the total bond amount you request. The company issuing the bond will assign you a premium rate based on the amount of coverage you choose and the number of employees the bond will cover.
Get Bonded Today
Request an online quote today for a fidelity bond that will enhance your reputation as a CPA and give you a competitive advantage. Or, contact us to discuss your bonding objectives with one of our surety bond professionals.