The basics:

• Bill A5598 proposes a second CPA licensure pathway in NJ
• Candidates could qualify with a bachelor’s degree, two years’ experience and passing exam
• Legislation aims to address the accounting profession’s talent shortage.

A measure to provide an additional pathway to obtain a CPA license in New Jersey advanced May 15 in Trenton.

The accounting industry is facing a talent shortage – and has been searching for innovative ways to remove barriers to entry. Currently, candidates have to earn at least 150 credits, gain one year of work experience and pass the CPA exam.

One of those ways has been through Work for Credit programs – which started as a pilot program in 2022 that was greenlit by the New Jersey State Board of Accountancy to explore its impact.

That has led to a number of higher education institutions and accounting firms partnering for programs that provide students with the chance to complete that final 30 credit threshold through a Work for Credit format. The initiative has been successful by every measure.

Assemblyman Sterley Stanley, D-18^th District, chairman of the Regulated Professions Committee, introduced Assembly Bill 5598 – supported by the New Jersey Society of Certified Public Accountants (NJCPA) – that seeks to modernize and modify New Jersey’s Accountancy Act.

Under the legislation:

• Candidates would get the opportunity to pursue a CPA license by earning a bachelor’s degree, completing two years of experience and passing the CPA exam; in addition to the existing 150-hour option
• CPAs licensed in another state would be able to practice in New Jersey as long as they have a bachelor’s or higher degree, have passed the CPA exam, and have at least one year of experience as a licensed CPA; the same requirements will be necessary to gain a reciprocal license in New Jersey
• CPAs licensed in New Jersey before the effective data of the bill will automatically retain their license

The Assembly Regulated Professions Committee advanced the bill during its May 15 meeting.

‘Long overdue’

“The introduction of an additional path to CPA licensure will allow for greater flexibility in the licensure process without compromising the rigorous educational and experiential requirements that ensure CPAs remain trusted advisors,” said Aiysha (AJ) Johnson, CEO and executive director of the NJCPA. “Keeping the profession open and accessible to promising young professionals is crucial, not only to the accounting field itself – but to the communities CPAs serve.”

Dan Geltrude, founder of Nutley’s Geltrude & Co., who regularly appears on national news programs as “America’s Accountant,” has long advocated for lowering the 150-credit threshold – and spearheaded the effort that led to the Work for Credit pilot.

He applauded the legislation advancing – describing it as “huge” for the accounting profession.

“This is a significant step in removing unnecessary obstacles to become a CPA in NJ,” Geltrude told NJBIZ. “Adopting additional pathways to CPA licensure was long overdue. NJ has been a catalyst for innovative change for the accounting profession nationwide. We are living in dynamic times that require continuous modifications to how we do things in the world of finance.”

Addressing a shortage

Stanley said the bill would provide accountants with a pathway to licensure that more broadly recognizes their experience.

“As Chairman of the Regulated Professions Committee, I have made it a priority to adapt our state’s processes for licensure so that they can more easily meet the challenges they currently face in their respective professions,” Stanley told NJBIZ.

He said he has to come understand that certain barriers have made it difficult for prospective accounting talent to complete their path to licensure – despite other qualifications.

“This has created a dire need for accounting professionals in our state and by modifying requirements to obtain licensure in public accountancy, this bill would help ensure that we will have the talent necessary to meet the needs of each New Jerseyans’ fiscal health.”