The accounting world now has 7000+ more reasons to celebrate and be optimistic. In a move that has been eagerly anticipated (at least here at TOA), the National Association of State Boards of Accountancy (NASBA) announced that the US CPA exam is now available in the Philippines starting July 2024.
World-class Filipino accounting talent across the 7000+ islands in the Philippine archipelago now has a direct path to a US CPA license. This development opens up a world of opportunities for Filipino accounting professionals and US accounting firms alike.
Implications for US Accounting Firms
Addressing the Talent Shortage
- The US accounting industry has been grappling with a shortage of qualified professionals. By enabling Filipino accountants to become US CPAs, firms can tap into a vast pool of elite professionals eager to contribute their skills.
Enhancing Diversity and Inclusion
- Hiring Filipino accountants can bring diverse perspectives and cultural insights to US accounting firms, fostering a more inclusive and dynamic work environment.
Expanding Global Reach
- Filipino CPAs can serve as a bridge for US accounting firms looking to expand their services in Asia. Their local knowledge and expertise can be invaluable in navigating the complexities of the Asian market.
Cost Efficiency
- Offshoring key accounting functions to Filipino CPAs can be a cost-effective strategy for US firms. The high level of skill and the relatively lower cost of living in the Philippines can result in significant savings without compromising on quality.
Global Implications: How it Impacts Firms in Australia, New Zealand, and Beyond
Enhancing Service Offerings
Tighter Outsourcing Competition
A New Pathway for Filipino Accountants
For many aspiring Filipino accountants, the dream of becoming a US CPA just became significantly more accessible. Here’s a step-by-step guide on how to become a CPA in the U.S. through the CPA exam international administration:
1. Academic Requirements
- Bachelor’s Degree — One of the most crucial US CPA requirements that could make or break your CPA exam eligibility is your educational background. Candidates must have at least 120 credit hours from an accredited institution. In most jurisdictions (states), candidates are required to have completed courses in business law, accounting, finance, taxation, and auditing.
- Additional Coursework — Some states may also require 150 semester hours to be eligible to take the CPA exam.
2. Choose the Right State
Each state in the U.S. has its own set of requirements for the CPA board exam. Filipino candidates must decide which state’s requirements they can meet. Some states may require candidates to have a Social Security Number (SSN) or be a U.S. citizen. However, these requirements don’t apply in Wisconsin, New York, Montana, Illinois, and South Dakota.
It’s also important to know which jurisdictions (states) allow international candidates to take the US CPA Exam. Here’s the list of popular participating jurisdictions international candidates often choose:
| Colorado | Michigan | Montana |
|---|---|---|
| Delaware | New Hampshire | California |
| Virgina | Alaska | Illinois |
| Guam | Washington |
| Alabama | Idaho | North Carolina | Virgin Islands |
|---|
3. Evaluation of Credentials
4. Application to Sit for the Exam
5. Taking the US CPA Exam
Once you’ve qualified, you will receive a Notice to Schedule (NTS) letter which will contain all the necessary information for your exam schedule, including the location, date, time, and other important details.
The US CPA exam consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG).
Click the button below for the complete US CPA exam candidate guide 👇
A Bright Future Ahead
The decision by NASBA to offer the US CPA exam in the Philippines is a win-win for both Filipino accountants and U.S. accounting firms. For Filipino professionals, it opens doors to global career opportunities and the chance to work with some of the most prestigious firms in the industry. For U.S. firms, it offers a solution to the talent shortage, promotes diversity, and provides cost-effective ways to expand their global operations.
Meanwhile, firm in Australia, New Zealand, and other parts of the world that rely on outsourced Filipino accountants, it’s time to rethink your outsourcing strategy to compete with the U.S. market.
If you need expert outsourcing advice, talk to one of our experts today so we can walk you through our proven, time-tested outsourcing playbook.
