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 1, 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.
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 |
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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.
As this new pathway unfolds, we can expect to see a surge of Filipino accountants taking the exam and earning their U.S. CPA licenses. This trend will undoubtedly strengthen the ties between the US and the Philippines in the field of accounting and set the stage for a more interconnected and collaborative global accounting community.
So, to all the aspiring CPAs in the Philippines, the time to act is now. The world of opportunities that come with a U.S. CPA license is within your reach. And to U.S. accounting firms, get ready to welcome a wave of talented, dedicated, and US-trained Filipino CPAs into your ranks. The future of accounting looks brighter than ever!
Do you want to learn how to strategically begin your offshoring journey? Talk to one of our experts today so we can walk you through our proven, time-tested offshoring playbook.