With the AICPA forecasting that most Certified Public Accountants (CPAs) will retire within the next 15 years, there is a growing demand for recent graduates to pass the CPA exam and meet the licensing requirements. The State of Texas has already taken measures to lower the hours required to sit for the CPA exam; however, candidates are still expected to complete 150 hours and one year of work experience to become fully licensed.
Effective August 1, 2026, Texas Senate Bill 262 gives CPA candidates an additional option for licensure: 120 credit hours and two years of work experience.
In this blog, we will go through the benefits of the new licensure option and help current accounting students choose which pathway is best.
The Benefits of a Lower Educational Requirement
Reducing the credit hour requirement can significantly increase the number of licensed CPAs by lowering the barriers of entry into the profession. One of the biggest deterrents for aspiring accountants is the additional education currently required, often a one-year master’s program in addition to a four-year bachelor’s, which adds financial burden and delays entry into the workforce.
The historical credit hour requirement can be especially discouraging for individuals from underrepresented or lower-income backgrounds. By easing these educational demands, candidates can save on tuition costs and begin their careers sooner, making the CPA path more accessible and inclusive.
In Texas, this change could help cultivate a more diverse CPA workforce while also addressing the growing need to replace retiring professionals.
Which Option Should I Choose?
Well, it depends on your goals, finances and learning style.
Master’s in Accountancy (MAcc) programs offer a structured and efficient pathway to fulfill the 150-credit hour requirement for CPA licensure, while simultaneously deepening technical knowledge and enhancing research capabilities.
These programs include advanced coursework—such as Government and Nonprofit Accounting—that align closely with CPA exam content, giving candidates a strategic advantage when sitting for the exam. In addition, accounting research courses help students strengthen their written communication skills and develop the ability to interpret and apply complex accounting standards with confidence. Full-time MAcc students benefit from a focused academic environment that allows them to integrate CPA exam preparation into their weekly schedules—something that is significantly more challenging for full-time professionals, especially during busy season.
Although pursuing a master’s degree may delay entry into the workforce by a year, candidates who pass all four sections of the CPA exam before starting full-time employment often gain a competitive edge. They can fully engage in their roles from day one, take on leadership opportunities and avoid the stress of balancing work and exam preparation.
For candidates who cannot afford graduate school or feel burned out after four years of college, entering the workforce immediately can be a practical and rewarding option.
However, this route demands a high level of discipline and self-motivation. As someone who successfully passed all four sections of the CPA exam while working full-time, I can attest that finding consistent, uninterrupted study time outside of work is challenging—but entirely achievable. The key is to create a realistic and sustainable study schedule that maximizes focus and productivity. Many accounting firms support their employees’ CPA journey by offering benefits such as designated study hours, discounted or subsidized prep materials and reimbursement for exam fees.
For hands-on learners, full-time work provides daily exposure to real-world accounting tasks—like preparing tax returns or performing audit procedures—which reinforce CPA exam concepts through practical application. Balancing work and study also sharpen essential skills like time management, goal setting and prioritization. Plus, being surrounded by colleagues who have already passed the exam offers a built-in support system of mentorship, encouragement and accountability.
Final Thoughts
As the accounting profession faces a wave of retirements, the need for new CPAs has never been more urgent. Texas’s new licensure pathway—offering the option of 120 credit hours and two years of work experience—provides greater flexibility for aspiring accountants to enter the profession in a way that aligns with their personal, academic and financial circumstances. Whether you choose to pursue a master’s degree or go straight into the workforce, both paths offer unique advantages. The key is to choose the path that best fits your learning style, financial situation and long-term goals. No matter which route you take, becoming a CPA is a challenging but rewarding journey—and with the right strategy and support, it is entirely within reach.
