What Is CPE? A Complete Guide for Accounting Professionals

Wondering what is CPE and why it matters so much in your accounting career? CPE stands for continuing professional education, a crucial requirement for maintaining various financial credentials and staying current in the accounting profession.

As accounting professionals, we know that our learning journey doesn't end with certification. In fact, CPA CPE credits are the standard measurement of our ongoing education, with each 50 minutes of coursework typically earning one CPE credit. For CPAs, CMAs, EAs, and other finance professionals, these requirements vary significantly. For instance, CMAs must complete at least 30 hours annually (including two hours of ethics), while enrolled agents need 72 hours every 36 months with a minimum of 16 hours per year. Additionally, if you're working with government programs, you'll need to fulfill 80 hours every two years.

In this straightforward guide, we'll break down everything you need to know about CPE in accounting—from basic definitions to specific requirements for different certifications. Whether you're a seasoned CPA or newly certified professional, understanding the ins and outs of CPE credits will help you maintain your credentials effectively while advancing your career.

The Basics: What is CPE and Why It Matters

Continuing Professional Education forms the backbone of professional development in accounting. Let's explore what it really means for your career and how it works.

What is CPE in accounting?

Continuing Professional Education in accounting refers to ongoing learning activities that maintain, enhance, and expand your knowledge and skills as an accounting professional. CPE ensures accountants stay current with changes in tax codes, ethics requirements, and industry regulations.

The primary purpose of CPE goes beyond merely fulfilling requirements. It helps accounting professionals deliver high-quality services, comply with ethical standards, and adapt to the rapidly changing financial landscape. CPE isn't just a regulatory necessity—it's a pathway to professional growth and excellence.

For accounting practitioners and firms, CPE is essential to remain competitive. Nevertheless, many professionals treat it as a last-minute administrative task rather than integrating it into their overall professional development strategy. This approach minimizes the potential benefits CPE can offer to both individuals and organizations.

What is CPE for CPA and other roles?

Different accounting certifications have varying CPE requirements:

• CPAs: Must complete for each three-year reporting period according to the American Institute of CPAs (AICPA). However, specific requirements vary by state, with most states mandating 40 hours per year.
• CMAs: Need to fulfill at least 30 hours annually with a minimum of two hours in ethics.
• Enrolled Agents: Required to complete 72 hours every 36 months with at least 16 hours yearly, including two hours of ethics.
• CFAs: The CFA Institute recommends at least 20 hours annually, including two hours of Standards, Ethics, and Regulations.
• Government Auditors: Those following Generally Accepted Government Auditing Standards need 80 hours every two years, with at least 20 hours each year and 24 hours specifically in government CPE.

Moreover, these requirements exist because the accounting field is dynamic and constantly evolving, demanding continuous learning and improvement. According to the AICPA and NASBA, CPE is required for CPAs to maintain professional competence and provide quality services.

CPE credits meaning and how they are calculated

CPE credits measure the time professionals spend participating in educational activities designed to enhance their skills and knowledge. Understanding how these credits are calculated is crucial for proper compliance:

• One CPE credit typically equals 50 minutes of qualified education.
• For university or college courses, calculations differ: one semester hour equals 15 CPE hours, while one quarter hour equals 10 CPE hours.
• When calculating credits for programs that don't indicate duration, divide the total minutes spent by 50 and round down to the nearest whole hour.

Furthermore, CPE credits can be earned through various approved activities:

• Webinars and online courses
• Self-study programs
• Conferences and workshops
• Teaching and publishing in your field
• Participation in certain professional activities

The AICPA and NASBA have established comprehensive standards to ensure all CPE offerings provide consistent, quality professional education. Before enrolling in any program, confirm it's from an approved CPE provider with a NASBA course ID number to ensure your state board will accept the credits.

Essentially, CPE isn't merely about meeting requirements—it's about investing in your professional development and ensuring you deliver exceptional value to clients and organizations.

Who Needs CPE and How Much?

Different accounting credentials come with varying CPE requirements that professionals must navigate carefully. Let's examine exactly who needs to complete CPE and the specific hour requirements across different certifications.

CPA requirements by state

CPAs face perhaps the most complex CPE landscape since requirements vary significantly by state. Generally, CPAs must complete 120 hours of CPE for each three-year reporting period according to AICPA standards. Yet state boards of accountancy establish their own specific requirements.

Typically, states follow one of these patterns:

• Annual requirement: States like Ohio and Virginia require a minimum of 20 hours yearly while working toward the three-year total
• Biennial requirement: States like California and Georgia mandate 80 hours every two years
• Triennial requirement: States like Texas require 120 hours every three years with at least 20 hours annually

Many states also have specific ethics requirements. For instance, California requires at least 12 hours in technical subjects per year, while New York mandates 4 hours of state-specific ethics every 3 years.

Given that, it's crucial to check your specific state board requirements since each jurisdiction has different deadlines, reporting periods, and subject-matter requirements.

CMA, EA, CFA, and government auditor rules

Beyond CPAs, other financial professionals have their own distinct CPE requirements:

Certified Management Accountants (CMAs) must complete 30 hours of CPE annually, including 2 hours focused on ethics. If you earn more than 30 hours in a year, you can carry forward up to 10 hours to the next year. Without fulfilling these requirements, your CMA designation becomes invalid.

Enrolled Agents (EAs) must earn 72 hours of IRS-approved continuing education during each three-year renewal period. This includes at least 16 hours each year, with 2 hours specifically in ethics.

Government auditors following Generally Accepted Government Auditing Standards (GAGAS or "Yellow Book") face stringent requirements. They must complete 80 hours of CPE every two years, with at least 20 hours in each year. Additionally, 24 of those 80 hours should be designated as "government CPE".

Non-certified professionals and voluntary CPE

Interestingly, even non-CPA professionals working in accounting firms often need to complete CPE. This particularly applies to:

• Non-CPA principals serving accounting firm clients
• Professionals who join accounting firms through acquisitions
• Non-auditor specialists serving on engagements governed by Government Auditing Standards

The Public Company Accounting Oversight Board (PCAOB) requires all professionals in member firms to adhere to AICPA policies for CPE. Consequently, member firms must monitor all professional staff—including partners—to ensure they meet these requirements.

Similarly, the Government Accountability Office (GAO) requires both auditors and non-auditor specialists serving on engagements governed by GAGAS to fulfill CPE requirements.

Obviously, voluntary CPE participation also exists among professionals seeking to enhance their skills, particularly in specialized areas. Indeed, many accounting professionals pursue additional education beyond minimum requirements to remain competitive in their fields.

How to Choose the Right CPE Courses

Selecting the right CPE courses strategically impacts both your compliance and career growth. Instead of viewing CPE as just another requirement to check off, approach it as a valuable investment in your professional development.

Aligning CPE with your career goals

Your CPE plan should do more than meet minimum requirements—it should advance your career trajectory. Initially, identify your professional development goals and choose courses that directly support them. For instance, if you're aiming for a leadership position, include management courses alongside technical topics.

Afterward, diversify your learning experiences to keep your professional development engaging and relevant. Attend various CPE activities such as seminars, workshops, webinars, and online courses to broaden both your knowledge and skill set. Focusing on quality rather than merely accumulating hours ensures your learning experience remains valuable.

Remember that earning CPE credits isn't just about compliance—it's an opportunity to develop expertise in areas that genuinely interest you and can significantly impact your career.

Understanding your state or organization's rules

Chiefly, before selecting courses. Each jurisdiction has different rules regarding:verify your specific CPE requirements with your state board of accountancy

• Total required hours
• Subject matter minimums (such as ethics)
• Reporting deadlines
• Acceptable delivery methods

Look for the NASBA course ID number when choosing CPE to ensure it will be accepted by your state's board. Furthermore, if you hold multiple certifications, understand the requirements for each to avoid compliance issues.

Although requirements vary, pacing yourself throughout the year prevents last-minute scrambling. Consider taking a few courses each month, allocating approximately 75% of your requirements in the first three quarters.

Evaluating course providers and accreditation

When selecting best online CPE providers, prioritize those with NASBA accreditation to ensure your courses meet industry standards. Accreditation serves as confirmation that the course content meets recognized quality benchmarks and will be accepted for credit.

Subsequently, evaluate instructor expertise and credentials. Industry-recognized professionals bring valuable insights and real-world experience to enhance your learning. Course reviews from other professionals can likewise help gage practical value and relevance.

Consider your preferred learning style when selecting formats. Some professionals benefit from interactive live webcasts where questions can be asked, whereas others prefer on-demand courses that fit into busy schedules. The key is choosing formats that keep you engaged while accommodating your work responsibilities.

Regardless of which provider you choose, ensure they offer comprehensive tracking tools to document your completed credits. Maintaining organized records of your CPE activities helps you stay compliant and prepared for any potential audit.

Different Ways to Earn CPE Credits

The path to fulfilling your CPE requirements can take many forms, with options to match every learning preference and professional schedule. Understanding these different methods helps you make strategic choices about how to earn your credits efficiently.

Online and on-demand learning

Self-study courses have become increasingly popular among busy accounting professionals. These on-demand options allow you to learn at your own pace without schedule constraints. Primarily, these include self-paced modules, video-based courses, and recorded webinars that you can access 24/7. Some providers offer "nano courses" designed for quick completion when you have limited time available.

Personally, I rely on MYCPE ONE—a flexible, all-in-one platform built for CPAs, EAs, and finance pros like me. With 15,000+ hours of approved CPE content, it covers everything from full-length programs to bite-sized modules I can complete on the go.

If you’re looking for a smarter way to manage your continuing education, I recommend giving it a try. They offer a 7-day free trial, so you can explore the platform with no upfront commitment. It’s made staying compliant feel a lot more manageable.

The convenience factor is substantial—73% of Checkpoint Learning users reported meeting CPE requirements through online options. Notably, many subscription packages can save over 60% compared to retail prices per CPE credit.

Live sessions and webcasts

Live webinars provide interactive learning experiences where you can engage directly with instructors. These typically range from 1-8 hours of CPE credit per session. For example, AICPA offers webinars on topics ranging from Excel reporting (2 CPE credits) to tax ethics updates (2 CPE credits).

Beyond traditional topics, webcasts presently cover emerging areas like sustainability accounting, which typically offers 1.5 CPE credits per session. A key advantage of live sessions is that all credits are considered "live" events, meaning no exams or tests are required to earn credit.

Conferences, workshops, and seminars

In-person events remain valuable for both learning and networking opportunities. Multi-day conferences typically offer substantial CPE credits—AICPA conferences provide depending on the program. Western CPE conferences offer flexible attendance options, with credit breakdowns ranging from 8 total credits (6 CPE + 2 bonus) for one day to 40 total credits (30 CPE + 10 bonus) for five days.

Undoubtedly, the social aspect enhances these events, with 100% of last year's Western CPE conference attendees saying they would recommend the experience to colleagues.

Writing, publishing, and teaching

From time to time, consider earning credits through knowledge sharing. In certain states, publishing articles in qualified accounting publications can earn CPE credits. For instance, a 2,000-word article might qualify for approximately 4 CPE hours.

Similarly, teaching accounting courses can count toward your requirements. In Minnesota, educators can earn up to 60 credits per three-year reporting period for teaching accounting courses at the college or CPE level.

Yet, documentation requirements vary by state. In New Jersey, you must submit the published article along with an explanation of why it qualifies for CPE credit.

Managing and Reporting Your CPE Effectively

Keeping track of your CPE credits requires as much attention as earning them. As a CPA or accounting professional, I've found that effective management of continuing education can save you from headaches at reporting time.

Tracking tools and software

Primarily, technology has made CPE tracking significantly easier. Many platforms now offer built-in tracking capabilities with features like automatic credit calculations and deadline reminders. Specialized software like MYCPE ONE can handle complex compliance requirements, including prorated credits, carryover calculations, and simultaneous compliance periods.

Purpose-built CPE tracking software, such as HIS Corp's solution, supports all 50 states' requirements plus specialized credentials like PCAOB and CFE. These programs store certificates, course descriptions, and credits earned, making verification straightforward during audits.

For those preferring simpler solutions, a personal spreadsheet tracking completed courses, credits earned, and upcoming deadlines works well too. Whatever method you choose, the goal remains consistent: maintaining accurate, accessible records of your CPE activities.

Annual vs multi-year reporting cycles

CPE reporting cycles vary across jurisdictions, with some following annual requirements while others use rolling multi-year periods. In Oklahoma, for example, CPAs must earn .

Understanding rolling reporting cycles is crucial. These combine credits from the current year with previous year(s) to determine compliance. If your state follows a two-year rolling cycle, the current year plus the previous year must equal the required total (typically 80 Hours).

Avoiding penalties and staying organized

Failure to meet CPE requirements can result in serious consequences, including license suspension, fines, or additional remediation hours. Some states impose depending on the deficiency.fines ranging from $300 to $1,000

To avoid these penalties:

• Keep electronic or hard copies of all certificates and documentation
• Update your records immediately after completing each activity
• Retain records for the appropriate duration (typically 5 years)
• Set calendar reminders for approaching deadlines
• Regularly monitor your progress throughout the year

By investing time in organizing your CPE records now, you'll save yourself from potential penalties and last-minute scrambling later.

Conclusion

CPE requirements might initially seem like another administrative burden in our already busy accounting careers. Nevertheless, viewing continuing education as an investment rather than an obligation completely transforms its value to your professional growth.

Throughout this guide, we've explored what CPE truly means for accountants, the specific requirements across different certifications, strategic course selection approaches, diverse earning methods, and effective tracking systems. Undoubtedly, understanding these elements helps create a more purposeful CPE experience.

Remember that quality matters more than simply accumulating hours. Focus on courses that genuinely advance your expertise and align with your career aspirations. Most importantly, spread your learning throughout the year rather than cramming at deadline time – this approach ensures better knowledge retention and less stress.

FAQs

Q1. What is CPE and why is it important for accountants?

CPE, or Continuing Professional Education, is ongoing learning that helps accountants maintain and enhance their professional skills. It's crucial for staying current with industry changes, meeting licensing requirements, and delivering high-quality services to clients.

Q2. How many CPE credits do CPAs need to complete?

CPAs typically need to complete 120 hours of CPE for each three-year reporting period. However, specific requirements can vary by state, with most states mandating around 40 hours per year. It's essential to check with your state board for exact requirements.

Q3. What are some ways to earn CPE credits?

CPE credits can be earned through various methods, including online courses, live webinars, in-person conferences, self-study programs, and even teaching or publishing in your field. The key is to choose methods that align with your learning style and professional goals.

Q4. How are CPE credits calculated?

Generally, one CPE credit equals 50 minutes of qualified education. For university courses, one semester hour equals 15 CPE hours, while one quarter hour equals 10 CPE hours. It's important to verify the credit value of each course or activity you undertake.

Q5. What happens if I don't meet my CPE requirements?

Failing to meet CPE requirements can result in serious consequences, including license suspension, fines, or additional remediation hours. To avoid penalties, it's crucial to track your credits diligently, keep accurate records, and ensure you meet all deadlines set by your state board or certifying organization.