The compression of the CPA pipeline is an issue of state and national concern. SCACPA and societies in other jurisdictions and national organizations are continuously exploring avenues to relieve the compression and enhance the profession’s attractiveness to would-be CPA candidates and students.
To secure tomorrow, we must plan today. Futureproofing our profession means ensuring we remain relevant in an ever-shifting financial landscape. Further, in a world where change is the only constant, flexibility isn’t just an advantage; it’s a necessity.
So, how do we ensure a steadfast future and continued relevance for the CPA profession? Threats we must consider include opportunity and tuition costs, starting salaries, branding and reputation, population decline, and more.
Dynamic adaptation is key to ensuring the profession’s sustainability and growth. CPAs are guardians of the public interest, entrusted to uphold integrity and trust. So, we as a profession must tackle these challenges head-on.
In South Carolina, the revisions to Title 40 Chapter 2 (the law that regulates the accounting profession in South Carolina) enacted in 2022 removed several barriers to licensure. SCACPA also continues to foster relationships with colleges, universities, and firms to encourage and support students and CPA candidates along the licensure path. These support mechanisms include networking opportunities, scholarships, student debt relief, and CPA Exam Bonuses. SCACPA’s advocacy and growth efforts sow the seeds for future success. Many thanks to our volunteers and elected officials who understand the importance of the profession’s relevance and growth.
To become a licensed CPA, there are three foundational pillars, commonly referred to as the “Three E’s.”
- Experience: Finally, candidates must gain one year of practical experience in the field to understand real-world applications of their academic learning.
- Education: First, one must fulfill the stipulated “Education” requirements that are specific to the jurisdiction. This ensures that aspiring CPAs have the theoretical knowledge needed.
- Examination: To satisfy the Exam requirement, candidates must pass the Uniform CPA Examination. Candidates must also pass a professional ethics exam.
Though the CPA license is a state-based licensure, many CPAs enjoy the privilege of cross-jurisdictional practice. In other words, CPAs can serve clients in other states without having to apply for multiple licenses. This works because of the concepts outlined below.
- Substantial Equivalency: Substantial Equivalency means that one jurisdiction’s board believes that another jurisdiction’s rules and requirements for Education, Examination, and Experience are at least as stringent as theirs. Specifically, they should be equivalent to or surpass a bachelor’s degree in accounting with 150 semester hours, one year of relevant experience, and a passing score on the Uniform CPA Examination. There is not a one-size-fits-all definition of Substantial Equivalency, which means while one jurisdiction might recognize a CPA’s qualifications as substantially equivalent, another may not.
- Reciprocity: Once licensed, if a CPA decides to move their principal place of business to another jurisdiction, the concept of Reciprocity comes into play. This allows a CPA to transfer their license to their new “home” jurisdiction, ensuring that they can continue practicing without requalifying.
- Mobility: CPAs often find the need to work across different jurisdictions. This is addressed through Mobility. This means they can seamlessly operate across borders without notifying each jurisdiction or incurring additional fees, while still being held accountable for their professional conduct. Mobility laws dictate how CPAs from other jurisdictions can practice within the local jurisdiction and operate under the purview of the local Board.
CPA Pipeline Programs
SCACPA proudly presents our Student Membership Program, designed to connect experienced CPAs like you with aspiring accounting leaders. By sponsoring a student membership for just $50, you have the chance to guide and inspire the bright minds entering our field.
Why Sponsor a Student Membership?
- Showcase the Value: As a sponsor, you’ll have the chance to showcase the true value of a CPA career. Your firsthand experience can shape their perceptions, helping them navigate the challenges and opportunities that lie ahead.
- Invest in the Future: Your sponsorship is more than a financial contribution; it’s an investment in the future of the CPA profession. Supporting students today ensures a robust and talented pool of professionals tomorrow.
- One-on-One Connection: SCACPA will personally connect you with a student, providing you with a unique opportunity to establish a one-on-one relationship. Share your insights, offer guidance, and become a crucial part of their professional journey.
At SCACPA, we are committed to fostering the growth and success of the CPA profession by supporting and nurturing the talents of the next generation. We are excited to announce our impactful scholarship program designed to bring talented candidates into the world of accounting.
- Diverse Range of Awards: SCACPA awards dozens of scholarships annually, with amounts ranging from $500 to $2,500. These scholarships are a testament to our commitment to providing meaningful financial support to students pursuing careers in accounting.
- Supporting South Carolina Students: Our program is dedicated to students attending colleges or universities in South Carolina. By investing in local talent, we contribute to the development of a strong and thriving accounting community.
Embarking on a career in the CPA profession is a significant milestone, and at SCACPA, we understand the financial challenges that can accompany this journey. We are thrilled to introduce the SCACPA Educational Fund’s Student Loan Debt Relief Program, designed to provide meaningful support to graduating CPAs burdened by student loan debt.
Learn more about the Student Debt Relief Program hereAchieving success in the CPA Exam is a significant accomplishment. The journey involves extensive study hours, sleepless nights, and numerous cups of coffee, culminating in a moment of immense relief when a new CPA eagerly checks the final passing grade.
This milestone is deserving of celebration.
In light of this, the South Carolina Association of CPAs Educational Fund presents a distinctive chance for firms and companies to acknowledge those who have conquered the CPA Exam. The SCACPA Ed Fund has the potential to grant bonuses to its members who have successfully navigated the challenges of the CPA Exam.
Learn more about the CPA Exam Bonus Program HereSCACPA provides the chance to assess your preparedness for both the CPA and EA Exams, helping you pinpoint essential focus areas for success!
Mock CPA Exam
Embark on a distinctive experience that offers you a glimpse into the CPA Exam sections by engaging with questions directly sourced from the official CPA Exam Blueprints. By participating in this opportunity, you’ll not only gain valuable insights but also receive a personalized ReadySCORE™, providing an accurate estimate of your potential exam score.
View information on the Mock ExamThe Dual Enrollment Accounting program by SCACPA in collaboration with Winthrop University provides high school students in Lancaster County School District with an opportunity to explore the field of accounting while earning college credits. These credits fulfill the requirements for introductory accounting courses at most colleges and universities in South Carolina and the United States. This initiative is designed to establish a sustainable talent pipeline in the accounting profession, giving students a head start on their professional journeys.
Beyond being an educational pathway, the dual enrollment program aims to illuminate students about the diverse possibilities within the accounting profession at an early stage. In doing so, it not only supports their academic development but also instills a sense of purpose and direction in their career choices.
Interested in Getting Involved?
Contact membership@scacpa.org to learn more about volunteering and speaking opportunities!
Frequently Asked Questions
General Information
A: Three primary objectives drive the proposed legislative amendments:
- Correcting minor errors in content and references to ensure absolute accuracy and consistency in the statutory language. This is fundamental for clear interpretation and application of the law.
- Creating flexibility in our licensing framework to adapt to external changes in licensure. The dynamic nature of today’s economic and professional landscape necessitates a system capable of evolving in response to changing circumstances.
- Ensuring the South Carolina Board of Accountancy (SC BOA) maintains jurisdictional authority over any CPA providing services to South Carolina clients. This provision aims to uphold the highest standards of professional conduct, regardless of geographical barriers, and protect the interests of citizens.
A: As states may increasingly broaden their CPA licensure language, they may risk losing their substantial equivalency status. If a CPA from a non-substantially equivalent state serves a South Carolina client and fails to register with the SC BOA, they are operating outside of the jurisdiction of both their home state and South Carolina. This poses a significant risk to the public interest and the integrity of the profession as a whole.
A: The SCACPA Board of Directors believes that filing the legislation for the 2024 season will allow us to have meaningful conversations with elected officials and their staff. Our intention is not to pass the bill in 2024 but set us up for the best success possible to get in front of legislators. SCACPA is fortunate to have many established relationships with South Carolina’s elected leaders, and we are more likely to capture their attention when we have a bill to discuss (as opposed to a concept). Because our profession is complex, we need to take time to ensure our legislators understand the nuances of licensure and cross-jurisdictional practice. With their feedback, and the anticipated final outputs from the national groups, we expect to put forth a bill for passage in 2025.
Licensure Pathway
A: No, the primary pathway to CPA licensure would remain unchanged. The law would still include completing 150 hours of education, passing the Uniform CPA Exam, and gaining one year of general work experience. The proposed amendments to 40-2-35(C)(2) are not about creating a new licensure path. Instead, these changes aim to define the educational options more clearly within our existing framework, particularly focusing on the additional 30-hour requirement.
It’s important to note that the South Carolina Board of Accountancy has the authority to evaluate and approve various educational programs under current law. This authority includes determining any changes or timelines for implementation. Given the Board’s traditional reliance on NASBA’s guidance and its consideration of practices in other states, it’s highly unlikely that the SC BOA would adopt a solution without these influential inputs. The newly proposed language precisely delineates the SC BOA’s authority, particularly in approving various means to achieve the additional 30-hour educational requirement.
A: No. The educational requirements for licensure remain the same, but the proposed legislation offers more clarity and delineates SC BOA’s authority, particularly in approving the additional 30-hour educational requirement. The proposed legislation does not create or provide an alternative pathway to CPA licensure.
A: Yes, the existing law allows the SC BOA flexibility to approve various forms of education, particularly for the additional 30 hours beyond a bachelor’s degree. The newly proposed language precisely delineates the Board’s authority, particularly in approving various means to achieve the additional 30-hour educational requirement.
No. The three tenets for CPA licensure, 150 hours of education, passage of the CPA exam, and one year of general work experience, remain unchanged. The proposed legislation offers more clarity and delineates SC BOA’s authority, particularly in approving the additional 30-hour educational requirement. The proposed legislation does not create or provide an alternative pathway to CPA licensure.
A: No. The SC BOA already has the ability to approve non-accredited programs. The proposed language precisely delineates the SC BOA’s authority, particularly in approving options for the additional 30-hour educational requirement. Given the SC BOA’s traditional reliance on NASBA’s guidance and its consideration of practices in other states, it’s highly improbable that the Board would adopt a solution without these influential inputs. The SC BOA has continuously demonstrated its dedication to the challenge and rigor of education required to earn the CPA license.
A: Absolutely not. The master’s degree path remains a solid avenue to gain professional knowledge and meet the 150-hour requirement for licensure. The proposed legislation delineates the SC BOA’s authority to approve non-accredited sources of education, like certificate programs, to also satisfy that requirement. This authority exists in statute today, and the proposal better defines what that authority could be.
Mobility
A: “No Fee” means that out-of-state CPAs would not be required to pay a fee to practice in South Carolina. “No Registration” means out-of-state CPAs would not be required to register with the SC BOA to serve South Carolina clients. “No Escape” means out-of-state CPAs are subject to the jurisdiction and regulatory authority of the SC BOA. In other words, they cannot “escape” the regulatory oversight and ethical standards set by the SC BOA, even if they are not required to register or pay fees. This triad is essential to ensure CPAs can work in South Carolina under the jurisdiction and authority of the SC BOA.
A: No. Currently, and under the proposed changes, out-of-state CPAs would not be required to pay a fee to practice in South Carolina. The goal of the proposed changes is to protect the public and allowing CPAs from any state to practice under the concept of inbound mobility. Inbound mobility manages out-of-state CPAs through three components: No fee, No registration, and No escape. “No Fee” means that out-of-state CPAs would not be required to pay a fee to practice in South Carolina. “No Registration” means out-of-state CPAs would not be required to register with the SC BOA to serve South Carolina clients. “No Escape” means out-of-state CPAs are subject to the jurisdiction and regulatory authority of the SC BOA. In other words, they cannot “escape” the regulatory oversight and ethical standards set by the SC BOA, even if they are not required to register or pay fees.
South Carolina’s current law says out-of-state CPAs may practice via inbound mobility if their home state meets substantial equivalency requirements. As states may increasingly broaden their CPA licensure language, our existing language falls short of accommodating potential changes. This oversight risks the South Carolina Board of Accountancy losing its jurisdictional authority over out-of-state CPAs serving our residents, posing a public protection liability that demands immediate resolution.
A: No. Currently, and under the proposed changes, out-of-state CPAs would not be required to register with the SC BOA to practice in South Carolina. The goal of the proposed changes is to protect the public and allow CPAs from any state to practice under the concept of inbound mobility. Inbound mobility manages out-of-state CPAs through three components: No fee, No registration, and No escape. “No Fee” means that out-of-state CPAs would not be required to pay a fee to practice in South Carolina. “No Registration” means out-of-state CPAs would not be required to register with the SC BOA to serve South Carolina clients. “No Escape” means out-of-state CPAs are subject to the jurisdiction and regulatory authority of the SC BOA. In other words, they cannot “escape” the regulatory oversight and ethical standards set by the SC BOA, even if they are not required to register or pay fees.
South Carolina’s current law says out-of-state CPAs may practice via inbound mobility if their home state meets substantial equivalency requirements. As states may increasingly broaden their CPA licensure language, our existing language falls short of accommodating potential changes. This oversight risks the South Carolina Board of Accountancy losing its jurisdictional authority over out-of-state CPAs serving our residents, posing a public protection liability that demands immediate resolution.
A: Yes, even without the need for registration or fees, out-of-state CPAs practicing in South Carolina will still be subject to the jurisdiction and professional standards enforced by the SC BOA. The goal of the proposed changes is to protect the public and allow CPAs from any state to practice under the concept of inbound mobility. Inbound mobility manages out-of-state CPAs through three components: No fee, No registration, and No escape. “No Fee” means that out-of-state CPAs would not be required to pay a fee to practice in South Carolina. “No Registration” means out-of-state CPAs would not be required to register with the SC BOA to serve South Carolina clients. “No Escape” means out-of-state CPAs are subject to the jurisdiction and regulatory authority of the SC BOA. In other words, they cannot “escape” the regulatory oversight and ethical standards set by the SC BOA, even if they are not required to register or pay fees.
South Carolina’s current law says out-of-state CPAs may practice via inbound mobility if their home state meets substantial equivalency requirements. As states may increasingly broaden their CPA licensure language, our existing language falls short of accommodating potential changes. This oversight risks the South Carolina Board of Accountancy losing its jurisdictional authority over out-of-state CPAs serving our residents, posing a public protection liability that demands immediate resolution.
A: They don’t. The amendments are not about creating a new licensure path. Instead, these changes aim to define the educational options more clearly within our existing legal framework, particularly focusing on the additional thirty-hour requirement. As the tenets of initial licensure remain unchanged (150 hours of education, passage of the CPA Exam, and one year of experience), South Carolina’s substantial equivalency status remains in place. This means South Carolina CPAs may practice via mobility in states that allow inbound mobility (most except Hawaii).
Regarding inbound mobility for out-of-state CPAs wishing to practice in South Carolina, the proposed legislation ensures they may continue to do so with the privilege of no fee, no registration, no escape. As states may increasingly broaden their CPA licensure language, our existing language falls short of accommodating potential changes. This oversight risks the South Carolina Board of Accountancy losing its jurisdictional authority over out-of-state CPAs serving our residents, posing a public protection liability that demands immediate resolution.