New Jersey Assembly passes new CPA licensure bill

by The Accountant Online

Assemblywoman Aura Dunn sponsored the bill, which preserves the rigorous standards of obtaining a CPA license while reducing entry barriers.

The New Jersey General Assembly in the US has passed legislation aimed at modernizing the path to becoming a certified public accountant (CPA) in the state.

The bill, known as A5598, is a response to the difficulties local businesses have encountered in recruiting qualified CPAs.

Recently, the New Jersey Society of Certified Public Accountants (NJCPA) introduced a proposal to establish an alternative route for CPA licensure within the state.

Assemblywoman Aura Dunn has sponsored the bill, which is designed to preserve the rigorous standards of obtaining a CPA license in New Jersey while reducing entry barriers.

Dunn said: “By creating more opportunities for college graduates to earn their CPA license and encouraging out-of-state CPAs to work in New Jersey, this bill 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.”

Citing a NJCPA survey, the assembly said 66% of 187 businesses in the state struggled to fill accounting roles last year, with 47% considering it a moderate or significant operational risk.

Traditionally, CPA candidates in New Jersey are required to complete at least 150 semester hours, approximately equivalent to a master’s degree, alongside one year of work experience and a passing score on the uniform CPA examination.

Dunn’s bill proposed that candidates could replace 30 educational credits with an additional year of work experience.

This change would enable college graduates with a bachelor’s degree to qualify for licensure after two years of work experience and passing the exam.

Furthermore, the bill simplifies the process for out-of-state accountants to practice in New Jersey. It eliminates the necessity to meet the standards set by the national accountancy board.

Instead, individuals with a valid CPA license from another state, who pass an exam and have one year of experience, would be eligible for licensure by the New Jersey Board of Accountancy.

Dunn added: “The financial services industry is changing with advancements in technology and policy shifts. New Jersey needs to evolve with the industry and modernize our CPA licensure process so that we have qualified people who can meet the increasing demands of the profession.”

In April this year, the Ohio Society of CPAs (OSCPA) announced that certified public accountants (CPAs) from other states will now be able to work in Ohio.  

The development, effective 90 days after Governor Mike DeWine signed House Bill 238 on 8 January 2025, evaluates CPAs based on their professional status rather than their state of licensure. 

Ohio joins Alabama, Nebraska, North Carolina, and Nevada in adopting this model, recognizing CPAs with certificates in “good standing” from any state and granting them practice privileges.  

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