Becoming a CPA is one of the most rewarding experiences you can have in your accounting career. Not only do professionals of all industries respect certified public accountants, but also CPAs make on average $1M more throughout their careers as compared with non-certified accountants.
Needless to say, pursuing a CPA certification is well worth it in the long run, but it doesn’t mean that the designation doesn’t come with its expenses.
Taking the CPA exam can be expensive with the average CPA exam journey costing between $3,500 – $4,500. There are several different costs associated with registering for the exam and additional fees to study and get licensed.
Let’s look at each CPA exam cost and what you can do to minimize the cost of taking the CPA exam.
6 Main CPA Exam Costs and Fees
Contents
Here’s a list of the most important costs and fees to take the CPA exam and become a certified public accountant.
- Exam Application Fee
- CPA Exam Review Course Costs
- CPA Examination Fees
- Exam Registration Fee
- CPA Ethics Exam Fees
- CPA License Fees
CPA Exam Application Fees
Before you are eligible to sit for the CPA exam, you will have to send in your application to your State Board of Accountancy.
Your State Board reviews your educational requirements, background, and makes sure that you meet all of the personal and educational requirements to take the CPA exam in your state.
Each state charges different CPA exam application fees ranging from $50-$200.
Once your state board approves your application, you are ready to start studying.
CPA Exam Review Course Costs
One of the most expensive parts of taking the CPA exam is simply studying for it. The test is so big and expansive that it’s impossible to simply read a book or go back through your college textbooks to prepare for the exam. You need a proper review course.
There are tons of different CPA review courses on the market ranging from $1,200-$3,000. Each CPA exam preparation course has different study materials designed for candidates’ unique learning styles. Most of the big name courses are good, but it’s important to find the one that works for you.
Without a real review course, you risk failing one or more CPA exam sections that could end up costing you the same price as the course. Or worse, months of time.
It’s a good idea to invest in a study guide.
CPA Examination Fees
After you start studying for a CPA exam section, you can sign up to take the section through the NASBA website.
I know what you are thinking. Didn’t you already apply to take the exam? Yes, you applied through your state board. This gave you permission to go to NASBA and sign up for an exam section. Now NASBA has to approve your application before you can register for a CPA exam section.
The CPA examination fees vary by state, but they are typically around $200 per section. Once NASBA approves your application, you will be given a Notice to Schedule (NTS) that allows you to register for the exam section within the next six months.
It’s a good idea to only apply for the sections that you think you’ll be able to take in the next six months. Otherwise your NTS will expire and you will have to pay another CPA examination fee for that section.
CPA Exam Registration Fees
After you pay your examination fees, you can officially sign up to take a CPA exam section. You will need to pay a registration fee and testing fee for the Prometric testing center costs.
The CPA exam registration fees vary from state to state, but they typically range from $115 – $175 per section. You can also sign up for multiple sections at the same time to get a bit of discount.
Some states only charge $300 if you sign up for all four exam sections at the same time. Remember, you only want to register for the exam sections you plan to take in the next six months. If your time elapses, you will have to pay an additional registration fee.
CPA Ethics Exam Fee
Most states require CPA candidates to complete an ethics exam after they pass all four sections of the CPA exam.
The most common ethics exam requirement is the AICPA ethics exam. This is a standard self-paced test that can be taken on the computer from home. The test is timed, but you are allowed to use your study book.
The AICPA ethics exam costs $125 and can be purchased directly on their website.
Some states like New York and California require candidates to take their own ethics exam. These exams are similar to the AICPA one, but are only valid for state residents.
The cost of these exams are similar to the AICPA test.
CPA License Fees
After you pass all four sections of the CPA exam and complete the ethics exam, you still can’t call yourself a certified public accountant until you apply for your CPA license.
All states charge an additional CPA license fee with your application. These license fees range from $50 – $250 depending on which state you are applying in.
3 Ways to Limit Your CPA Exam Costs
The CPA exam can be expensive costing between $3,500-$4,500 from start to finish depending on your state.
There are a few things you can do to minimize these costs and fees to try to get certified without breaking your bank.
Here are a few suggestions.
Pass the Exam Your First Time
I know this sounds dumb, but it’s true. Too many candidates go into the exam unprepared and think they can just take it again if they fail.
Although that is true, you can take the exam as many times as you want. It’s way more expensive.
Take the time to study and show up to your exam prepared. You can cut out half of the typical exam costs simply by not failing and having to retake the same section multiple times.
Don’t Let Your NTS Expire
It’s easy to let time slip away. Six months isn’t that long when you have a job and a family or even a social life.
Once you sign up to take an exam section, study like crazy. You don’t want to let your Notice to Schedule expire or you will have to pay completely avoidable re-registration fees.
Get a Review Course
This is a huge one. Get a CPA study guide that matches your learning style, so you can actively study. The best way to minimize your exam costs is to simply pass the exam.
The only way to really prepare for the exam is with a professional study guide. It’s worth the investment.