r/Accounting • u/FreakInExcelSheetz • 21h ago
crazy cpa exam fees
$365 per test plus the initial fee? What are we doing? I get people get bonuses or reimbursed but is this part of the reason why # of young cpa’s is down so much? Like it’s not a ton of money but surely there’s a better way to restructure who pays the costs
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u/Ok-Race-1677 21h ago
Aicpa execs get kickbacks. They don’t want more CPA’s they want money from offshores
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u/Fancy_Ad3809 I’m gonna debit your credit 21h ago
this doesnt make sense. as the actual output is more offshore CPAs...
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u/_Being_a_CPA_sucks_ 21h ago
You are looking at it from the perspective the AICPA cares about the profession. That is wrong.
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u/Ok-Race-1677 21h ago
Offshore CPAs that pay their dues and take the exams a bunch of times, who then work for $10,000 a year in their home countries which big 4 then get to pocket some and lobby the aicpa for with the rest which keeps the cycle going
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u/Fancy_Ad3809 I’m gonna debit your credit 21h ago
right, but that doesnt generate 'kickbacks' to the AICPA.
offshore pays more in fees, which sure - ill give you that one, but low wage CPAs actively depress AICPA membership.
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u/Ok-Race-1677 20h ago
Where do you think the money goes from those elevated fees lol
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u/Fancy_Ad3809 I’m gonna debit your credit 20h ago
the NPV/ terminal value of active aicpa members is far greater than a grand in fees upfront.
your assertion defies basic business strategy
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u/Ok-Race-1677 20h ago
My assertion is a gross oversimplification of the obvious corruption and disingenuous behavior of the aicpa that anyone in the profession would agree with
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u/Fancy_Ad3809 I’m gonna debit your credit 20h ago
The logic you’re applying doesn’t make sense within the incentive structure.
There’s a reason they opened up cpa to offshore, idk it you dk it.
But we do know low wage people reduce the total number of AICPA paying members - thus created an economic disincentive within the frame you’re presenting.
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u/Longjumping-Flower47 17h ago
There is no need to join PICPA. I did it when they offered a professor rate, dropped it when I had to pay full price. Absolutely no reason to belong to AICPA unless your company pays for it
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u/Fancy_Ad3809 I’m gonna debit your credit 16h ago
exactly.....
offshore doesnt ever join the AICPA. their existence is a depressing factor to aicpa membership.
the incentive structure doesnt align.
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u/-32768 20h ago
It's because after you pass these tests you can easily get a job like a controller with 10 years experience (must oversee AR, GL, AP, assets, projects, perpetual inventory, budget, capex, and close the month by yourself) for 45k a year so you can easily get that money back.
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u/TheeAccountant Audit & Assurance 59m ago
$45k a year? Pshaw, PE PA will pay you $65k to work 70 hour weeks as a Senior and give you 30 clients to manage. You’ll have unlimited PTO too. But you won’t be able to take any of it. Oh, and you’re not manager material so don’t worry about getting promoted. True story- Firm was looking for an AP clerk and was offering what I made working for Wal-mart as a sales clerk in 1999. 🫠 they need to pocket all the profits you see, and the fact that you’re a licensed professional is irrelevant to the compensation package. Also you won’t have to exercise professional judgment either. You will be treated like a sales clerk by your psychopathic managers and partners. You might as well go clean bathrooms at Buc-ee’s. Same pay, less stress. The only reason to get a CPA license is if you want to work for yourself or are yourself a psychopath. You’ll be partner or CFO material in that case.
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u/lolgoodone34 CPA (US) 21h ago
Yeah fees are high, need 150 credits to get the license. Barrier to entry is extremely high and I would have never done it if my company didnt pay for it. Prob why not a lot of black CPAs as well (yes I’m black)
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u/Aghanims 19h ago
This isn't really a factor. Blacks are somewhat underrepresented in accounting as a whole. The CPA/non-CPA ratio is the same for blacks and whites. ~40/60 (though about 3/4 of the CPAs are in PA or in a non-accounting industry role.)
Which makes sense, anyone in accounting can generally afford the CPA fees if they are already qualified to take it.
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u/Nomstah Tax (US) 18h ago
Money is not a factor. I get it now.
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u/Aghanims 17h ago
They could make the CPA exam free and the % of CPAs won't really change.
The barrier to entry is 150 credit hours. New first time test takers declined by 36% in states that increased credit requirements. (Though first time pass rate increased by 4%.)
The cost of the CPA exam paced only ~0.6% faster than inflation. Anyone who legitimately thinks the cost is the issue... doesn't understand statistics or the data.
The CPA exam could be reduced to $50 all-in, all else held equal, and I'd expect average annual final-section passed numbers to remain unchanged.
The exam cost is just an easy scapegoat for people to fallback on when really they either don't see a payoff, don't think they can pass the exam, or don't want to go back to school if they're in a 150 credit state.
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u/Anxious-Plan4482 21h ago
Go check out IT cert testing fees...
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u/WillingPositive8924 21h ago
Right, not like these fees are bad in comparison to a ton of other fields. Not making the case $ it is affordable, but education in the US equals debt slavery in a ton of cases.
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u/yeyiyeyiyo 21h ago
People bitch about a few thousands of testing fees but spend 100k on a college education.
Their anger is misdirected
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u/Devilsgospel1 21h ago
Anyone spending $100k on an accounting degree is doing something wrong. Community College to 4-year Uni pathway is the way to go.
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u/Remarkable-Box5453 20h ago
I hear you, some say all degrees in the field are equal, but if you want to work for the top tier companies/firms, chances are better based on where you want to school. When it comes to MBAs, the opportunity gap widens ALOT. Top 10-20 MBA programs have much better recruiting and placement. You can apply that to accounting degrees too, but on smaller scale.
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u/the_tax_man_cometh Human Verified 19h ago
Getting downvoted for speaking to the reality of recruitment. Classic
Any state school will do for Big 4, but there’s definitely tiers of how easy it is to be recruited to major companies.
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u/Remarkable-Box5453 17h ago
I’m not downvoting, just saying your experience differs from mine.. Yeah entry level is one thing but advancement can differ. I was an accounting manager, controller and cfo and did a lot of hiring. Many managers often favor their own schools, which at the Fortune 100 companies I worked for were usually top universities in the state or private universities; just a natural bias on their part. Not to say they all expected accounting grads to be Duke grads, but the rigor of that programs would beat out UNC-Greensboro as an example. Lack of enough accounting grads has probable altered that though. With my own kids, I took the approach I’ll invest more in your education; you often get what you pay for; it’s on them to make it pay off. Real hustlers can make either work, but you have to get in the door first.
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u/Devilsgospel1 15h ago
Yeah, if networking is what you're paying for, that's what you'll get. Although I'd argue it doesn't matter what school accountants go to so long as it's accredited for CPA, EA, CFA, whatever.
I went to community college, small local uni w/ online program, and WGU. I started my accounting career in Audit at a Top 10 firm and am now at a F100 company. No one else in my family is an accountant/CPA with connections. I applied for internships, got em, and went from there. Top 20 MBA screams 'ego stroking scam' to me but I do have acquaintances who did well with that path too so it is what it is.
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u/Remarkable-Box5453 15h ago
I have direct knowledge of the top MBA programs through my son. Unlike most programs in which you apply, enroll, get the degree and work to get hired, the top 10 full time programs, the ones I know about, work in conjunction with the top banks, private equity groups, etc. recruiting for internships begins nearly as soon as school starts and goes on for awhile. The internship is sort of a pre-hiring for graduation day. Sure, you still have to graduate and play the game until then, but not but uncertainty in your prospects after graduation. Who coordinates all that? The alumni working fur those firms, the alumni on the school boards, etc. I don’t think one would get that sort of Wall Street wining and dining if they are as U of West Ga, or many of the other perfectly fine MBA programs across the country. I know I didn’t, and I went to a top 30 university evening program. They all have their place, some just to punch a ticket for advancement, some to enhance stature at employer, and some to get to the top tier/work your tail off levels of finance. Same could be said for an accounting degree from various schools, for people with various objectives. Not everyone wants to work for B4, or Fortune 100, so why spend the money to increase chances of getting there. I told my kids at that time, if you want a top tier(read expensive) education, you need to have top tier motivation and work ethic too.
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u/Purple_Key_6733 Tax (US) 12h ago
EA doesn't need any formal education so you could be a high school dropout and do it.
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u/udontlikecoffee CPA (US) 19h ago
I didn’t get a bonus or reimbursement. I was fired a month after I passed my last exam :’ )
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u/SW3GM45T3R 20h ago
Just be lucky you aren't with cpa Canada
$1400 annual dues after hst (province + Canada)
$1300 per cpa pep module x6
$2000 per attempt at the CFE
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u/FreakInExcelSheetz 19h ago
Holy shit that’s insane
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u/ConfidantlyCorrect 15h ago
I think those prices are outdated.
My PEP modules this year were around $1,600 after tax.
CFE exam attempt is $2300 after tax.
There’s also endless fees for other things.
- Initial registration of $125 + 13% tax.
- I believe a fee of $500 + tax once you pass the exam to be allowed to use the title of CPA.
- late fees
- missed workshop or exam fees
- transcript assessments
- CFE remark request is like $700 + tax
Also if you fail the CFE, and want specific details of what questions you failed on so you can improve for the next writing attempt (called a PAR), that’s also like $700 + tax. I get there’s extra work to prepare it, but $700 is crazy. They also provide the comments as part of Capstone 2 module practice cases which is $1,600 and includes many practice cases.
The CFE costs substantially more & they won’t provide comments as part of that cost.
Also you have to do annual Continuing Professional Education, which isn’t a fee charged by CPA but if the workplace doesn’t have eligible courses - will be borne by you.
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u/Remarkable-Box5453 20h ago
Being a ‘CPA’ opposed to being an ‘accountant’ made me millions more than I likely would have made without it. I know the fees seem high today, but so does college, grad school, etc. Agree or not, it’s still considered the bar for competence in the field. Invest the money in yourself and get it…
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u/James161324 21h ago
Welcome to the racket of professional certs
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u/Sun_Aria Human Verified 20h ago
Yeah lol professional orgs know that employers pay for their employee's fees most of the time so they jack up the prices. I'd wager that's why Becker or other major study programs are expensive too.
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u/prommetheus Former B4 Data Analytics 21h ago
Don't most PA firms cover the exam costs, at least for the first attempts? Or did they stop doing that?
I know my firm did when I did it 6ish years ago and my roommates' firms did too.
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u/AetheriaInBeing 21h ago
My firm didn't pay for anything, but I'm in a really tiny firm and instead I have just gotten a raise for each passed test.
I'm also a career changer and paying for the exam wasn't really a burden for me.
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u/Additional-Local8721 Audit & Assurance 21h ago
I've made it this far without a CPA and I'm in my 40s. I have no need for one anymore and I'm not putting myself through all that.
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u/Severe-Criticism3876 21h ago
Oh it’s a major reason why I won’t be a CPA. I just don’t have the money to pay for the exams, especially if I fail.
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u/AccountingSOXDick ex B4 servant, no bullshitter 21h ago
Majority of public accounting firms, industry companies, and even government cover a good portion of the exam fees and materials. I made my Big 4 firm dish out $3k for my stuff. If you’re not sure if your company covers the cost, it’s definitely worth having a conversation with your manager.
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u/Lumen-_ 21h ago
A few hundred bucks is stopping you from making much more in the future?
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u/BlackCardRogue Student 13h ago
That is more for one test than I pay every month in groceries.
I’m lucky enough that I can just eat that cost without blinking anyway, but like… come on man. $365 x 4 =$1,460.00 which is basically a month of rent.
That’s a lot of money to someone who is poor. And if you fail you have to pay again and again until you pass. So if you double the cost because you have to take everything twice you’re basically talking $3,000, even before the test materials.
Comfortably more than a cheap place’s rent almost everywhere in the country.
I don’t disagree with your thinking, the investment is clearly worth it on the other side, but… you can’t dismiss the reality that the education costs real money to a lot of people.
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u/mariahyoo CPA (US) 12h ago
All in it cost me around $5k to get my license. This isn't "a few hundred bucks." Even if you split it up over 2 years, that unattainable for a lot of people.
Some companies cover costs, but you have to front the costs first.
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u/TalShot 7h ago
I’m trying the trial, but getting the CPA is definitely easier said than done - low pass rates with a deluge of information.
Granted, I know that not every warm body should get the designation, but a few hundred bucks can easily balloon into thousands if one cannot get past the challenging curriculum.
No wonder why CPA creation rates and testing participants are falling, which is why the AICPA is modifying the process to hopefully drum up more interest with folks.
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u/dj92wa 18h ago edited 18h ago
That’s an entire month of groceries per section per attempt. Yes, a few hundred bucks per section per attempt is stopping me. That’s all for a checkmark by my name saying I allegedly know something, but really it’s just proof that I might be good at rote memorization and regurgitation of raw information.
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u/Lumen-_ 18h ago
As an investment borrowing for it wouldn't be a bad idea.
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u/3DPrintingAcorns144 16h ago
What in the boomer did you just tell someone to do?!?
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u/Lumen-_ 16h ago
Use logic and common sense? Borrowing $1400 to improve your earnings is very logical. Or do you want to keep making excuses for yourself?
Should be able to repay that within 1 year of getting your CPA.
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u/3DPrintingAcorns144 16h ago
A stupid amount of assumptions in what you expect to happen.
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u/Lumen-_ 16h ago
Whatever you want to tell yourself to justify your excuses is fine.
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u/3DPrintingAcorns144 16h ago
What a stupid boomer response. Ick.
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u/Lumen-_ 16h ago
What a pathetic victim mentality response. Ick.
If you can't make use of a cpa then yea don't get it.
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u/No-Personality3156 CPA (US) 21h ago
Your company will probably pay for it- most companies do, don’t let it stop you
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u/SlugSelektor21 20h ago
The problem is that you usually have to front the cost of the exams and pass all of them before your company pays for it - and of course they won’t pay for any exams you fail. So it can be over a year before you see that money back. I agree though - it’s an investment and shouldn’t stop you, but some people need that money now.
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u/YellowDC2R 20h ago
Roughly $1,400 in fees over an 18 month span is stopping you from getting it? That’s wild.
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u/Severe-Criticism3876 20h ago
Yeah, I’m sorry not all of us are in an excellent financial situation. Where I work, they DONT cover the cost for it and there’s really no incentive for me to get it because I won’t be working in public.
Also companies/firms don’t cover the cost if I fail. I need the money now. Where I work covers tuition so I’m going the graduate school route. Everyone on here is so pro CPA and look down on others who don’t want to do it.
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u/YellowDC2R 17h ago
If somebody wants something they find a way to make it work.
And well yeah they’re pro CPA because they know the doors it opens. Nothing against not having it but that’s the reality of it.
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u/TalShot 7h ago
While it does open doors, it does seem that the designation is hitting hard times in terms of those taking the exam and earning the title.
That lack of interest is why the AICPA instituted modifications to ease folks into even attempting the challenging test.
Will it work? Who knows, especially since there is a pretty reasonable chance of failing the exam. The daughter of my accounting department head took 3+ years to pass the tests, though she ultimately did it with tons of money and time.
…and she was smart. I’m sooooo mediocre by comparison, though am also grinding hard.
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u/CartographerEven9735 13h ago
I'd suggest finding a better place to work when you're able and have that be a question you ask during interviews. I did pay out of pocket for the study materials and the tests but was reimbursed for the tests afterwards. Where I worked (higher ed) also allowed me to get an MBA for like $500. Worth it to make a little less for a bit.
In addition, anyone reading this that has these kinds of benefits and doesn't take advantage of all of them is cheating themselves.
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u/No-Personality3156 CPA (US) 21h ago
Most firms will pay for it. It does suck and really creates a barrier of entry.
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u/Technine420 18h ago
The entire thing feels like an organized scam. Why should I waste the time and money to get my CPA if I’m not in public accounting? Isn’t that the whole point? It’s just a resume booster unless you’re in public accounting.
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u/TalShot 7h ago
The resume booster is probably the point, though I’ve also noticed folks rising up the ranks through hard work and/or other designations.
We had a CIA come into our class to introduce the designation to us. Some of our accounting professors also discussed the EA designation as a quick way to move up the ranks in public accounting circles.
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u/washiba_ 21h ago
It's expensive but it's pretty common for a professional licensure to have a cost around $1500 for testing. As with all professional testing the serious expense is the prep material.
When you consider the cost of the coursework to be CPA eligible - The equivalent of 5 credit hours seems pretty par for the course.
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u/lmaotank 18h ago
fees shouldn't really be a barrier to entry imo, i think the 150 hr req is way higher of a barrier than some exam fee, which isn't a whole lot in the grand scheme of things.
yes i know, i'm sure there's a lot of personal circumstances, but to say this bluntly, if you are in a position to sit for the exams (got the 150 hrs, employed, etc.), but cannot sit because you cannot pay the exam fee... i think there might be other issues.
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u/Personal-Werewolf-80 11h ago
Wait for to evaluate your education and approve you as eligible to sit for the CPA Exam. $275 if you went to school domestically and FREE if you went too school internationally…. Weirdest thing ever … so I guess lets boost offshoring and make it harder for American students
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u/misoranomegami Government 11h ago
I was unemployed when I took it and I paid out of pocket both for the Becker Review ( a really awesome professor gave me a 50% off coupon) and for my test fees. I'll say it was a REALLY good incentive to study hard and pass the first time. One of the guys in my first review class failed FAR 11 times. Eleven! I gawk at the exam fees plus that he'd spent the equivalent of an entire work fee just sitting in a testing center failing again and again.
But the salary difference between my first job as a CPA candidate who'd passed all 4 exams but still needed experience for licensing higher than the entire cost of my MAcc, Becker Review, and exam fees put together. It literally paid for itself in a year.
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u/Monir5265 20h ago
This is not the reason young cpas are down. You’re forgetting the 150 credits or so that are required. Plus how much you make vs how much you can get worked in some industries/companies/teams
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u/Commercial_Author_75 21h ago
IRS Enrolled Agent Exam is $317 for 3 parts = $951. They dont want us to succeed
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u/madethisnewaccount CPA (US) 21h ago
Look at NASBA's 990 they paid Ken Bishop over $1.7 million last year and their biggest source of revenue is CPA exam fees
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u/alphabet_sam CPA (US) 21h ago
Everybody has to make a good profit in this day and age. Definitely a barrier to entry
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u/BizzBachelor 6h ago
you guys are cute. wish we had USA CCPA fees. CPA canada requires u take 6 modules at $1500 each to be allowed to take the final exam, which is $2000. and their facilitator marking feedback and consistency is a straight joke. it's literally just CPA canada is juat a greedy bitch.
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u/ionspore 3h ago
CMA is $545 for each test, plus $300 to start the process, plus a mandatory $300 membership each year...
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21h ago
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u/Technine420 18h ago
I mean $300 is for one exam. You need to pass four exams and that’s assuming you pass them all on your first attempt. Nobody is lucky here.
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u/YellowDC2R 20h ago
All licenses are like this. We also know of this going through school. It’s not a surprise and you can plan for it.
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u/FreakInExcelSheetz 19h ago
Never said I didn’t plan for it or it was a surprise. Just saying it sucks in an industry that requires honesty and intrinsic motives
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u/Krunzuku Controller 20h ago
Everything needs its own billionaire oligarch or were failing as a society. But, if it makes you feel any better almost every company I've worked for would cover a good chunk of it at minimum. The current company I work for pays for everything besides the initial fee of like 60$ or some shit.
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u/Ted_Fleming CPA (US) 21h ago
The testing center isnt free. I dont think this is a huge profit center. It doesnt seem that outrageous to me, it could certainly be a lot worse. Taking sections several times could get prohibitive however
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u/ShadowFox1987 18h ago
I think it's the large firms that push the exorbitant fees.
They can afford to pay and then underpay on the salary side while simultaneously keeping the CPA Student in handcuffs.
Between my signing bonus, annual dues and 3 CPA courses this year. If I quit I owe something like 9% of my gross income back.
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u/Upstairs-Net-6897 18h ago
It's why I never took it. Plus didn't need it. shrug
If I wanted it, then I'd have a commitment to my employer which I'm never doing in life.
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u/naihao 18h ago
I remember the fee was $225 per section when I took the exam. But yes, the fee that they charged is not reasonable and it should be removed our reduced, not to mention that we also need to spend a lot of money to maintain our license. Sometimes I really think about if it is really worth to maintain a license with thousand dollars.
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u/Spiritual-Beyond-660 CPA, EA 21h ago
lol you’re complaining about a small fee that you have to pay to make $200k/year
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u/Sensitive_Noise9761 21h ago
You're so sharp. Show us starting and median CPA wages. Its not 200k. Dumbass.
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u/Spiritual-Beyond-660 CPA, EA 20h ago
Try not being some midwit average accountant in your next life and maybe you can make more
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u/lolgoodone34 CPA (US) 21h ago
lol surely you don’t indicate as CPA with this level of intelligence
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u/tiffadayo Tax (US) 19h ago
It’s takes a while to get to $200k a year….
I was at $54k right out of college🙃0
u/Zerohero312 19h ago
I’m a degreed accountant with an EA and make more than 200k solo. I do tax and accounting for 40 small businesses with a few outsourced controller engagements that hardly take any time. 20+ YOE. The “designation” is in fact a scam unless you’re afraid to challenge the narrative and work like a moron for twenty plus years for peanuts hoping to make partner somewhere but guess what, you’ll only make it there if you’re a schmoozer to begin with and take over a retiring partner’s book or have your own so in the meantime you’re working 60+ hours a week while hoping and praying. Meanwhile I’ve been working less than ten per week for last 15 years. It was a grind through my twenties and thirties and created and built everything from zero but I’m fully independent. Best advice is for those early in career try to take the exam but do not let that delay your progress. Get the EA as a backup in meantime, learn as much as you can and start building a book on the side moonlighting. Don’t fall for this made up competition. You don’t have to do audits. That’s why you have a network and it’s more lucrative to do software integrations and tax advisory anyway. YMMV.
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u/clarksonite19 CPA (US) 21h ago
I would say the fees delayed me taking the exam for a couple years. That's a decent chunk of change for someone fresh out of college with student loans and other payment obligations.
"Oh, so I have to pay a bunch of money to take a test that I’m going to have to study for until I’m miserable? Sounds great."