Requirements for Michigan

Michigan, the birthplace for the assembly line and industrial innovation has a rich history. The tradition continues to this day, as multiple Fortune 500 companies, major employers, and other large businesses base their operations in Michigan, giving Michigan accountants the opportunity to pursue stable and diverse employment across industries.

Michigan CPA requirements are similar to those of other U.S. jurisdictions. They include both education and experience. To qualify, you do not have to majored in accounting. However, your bachelor’s must include accounting and business. Michigan CPA standards include at least one year of full time employment.

It is essential to understand the requirements if you are planning to pursue a career in accounting. This guide will show you how to become a CPA.

Michigan CPA Education Requirements

Michigan CPA licensing and exam standards are different. You must hold or be near completing a bachelor’s standard degree to qualify for the Michigan CPA exam. You must have a thorough accounting and business education.

You need to have at least 150 credits of college in order to get your CPA license. CPA candidates can earn these extra credits in a variety of ways. Graduate course sequences and certificate programs represent two common strategies, while accelerated bachelor’s-to-master’s accounting programs offer another path.

In the following sections, we will explain in detail what is required to pass an examination and obtain a license.

Acceptance of courses, credits, and concentrations

You must have completed a bachelor’s degree program that covers at least 120 quarter-hours or 120 semester-hours. You can take the CPA test before you have completed your degree. You must, however, complete all the academic requirements for your program within 60 calendar days after taking your first CPA section.

Your 120 semester hours also must include 24 semester hours of accounting and 24 semester hours of general business. Michigan CPA Standards use a 1.5 multiplier to calculate the quarter-hour equivalent. So, 24 semesters hours are equal to 36 quarters hours.

Accounting education requirements include at least 21 semester-hours of coursework that includes the following:

• Accounting systems and controls
• Accounting theory and financial accounting
• Accounting for government or funds
• Cost accounting and managerial accounting
• Taxation

Auditing is also required. Internal auditing coursework will not be accepted.

You can choose any business-related subject to cover in your 24 semester hours. Examples include, but are not restricted to, economics, management, finance and finance.

A Michigan CPA candidate must have 150 semester hours, or its equivalent in quarter-hours. Michigan guidelines don’t specify that the additional college credits have to be in accounting or business. However, many CPAs choose these subjects as a way to meet their exam and license requirements.

Michigan Experience Requirements

In order to become a CPA, you will need work experience as well as the required education and exam. Michigan has simple work experience requirements, which require at least 2,000 working hours over a period of one year.

There are several factors that qualify:

• Experience must be gained over a minimum of one calendar year.
• The 2,000 hours must be completed within five calendar years.
• Unpaid training is not acceptable.
• The government, the private sector, and the public accounting profession are all valid job venues.

The Michigan CPA experience form must be used by a licensed CPA to supervise and verify all work experiences. Michigan does not require work experience for you to take the CPA examination. If you have 2,000 hours of experience within five years, you can accumulate the experience either before or after the exam.

CPA Exam Requirements

Michigan-based candidates must pass the Uniform CPA Examination. All U.S. jurisdictions use the same exam, but eligibility requirements vary among states. The following sections cover CPA examination requirements specific to Michigan.

Eligibility to Take the Exam

You may apply and sit for the Michigan CPA exam after meeting the 120 semester hour requirement. First-time examination and licensure candidates do not need to pass the American Institute of Certified Public Accountants’ (AICPA) Professional Ethics Examination.

If you have not yet completed all educational requirements, you may still apply for and take the exam. However, you must meet the education standards within 60 days of writing your first exam section. Failing to do so invalidates your exam scores.

Michigan accepts course credit from accredited four-year, two-year, and community colleges. Online courses are recognized if they appear on the applicant’s official transcripts. Pass/fail, AP, and CLEP credits also qualify if earned at an accredited postsecondary institution.

Michigan does not impose age, citizenship, Social Security number, or state residency requirements on CPA exam eligibility. Candidates educated outside the United States must have their credentials evaluated by the National Association of State Boards of Accountancy (NASBA) International Evaluation Services or a member organization of the National Association of Credential Evaluation Services.

Applying for and Scheduling the Exam

You can apply for the CPA exam in Michigan directly through the NASBA website. The exam application and scheduling processes differ. When you apply, NASBA will evaluate your credentials. If your credentials meet Michigan’s standards, you will receive a Notice to Schedule (NTS) through your NASBA account.

When applying, you must submit official academic transcripts from all educational institutions you have attended. You can have your school(s) send official transcripts electronically if they offer. If not, you must obtain hard copies and send the sealed documents.

If you are still in school, you can apply and sit for the CPA exam provided you will meet all education requirements within 60 days of taking your first test section. These students must also submit completed Certificate of Enrollment forms.

Michigan CPA standards allow examinees to take the Uniform CPA Examination in one or more sections at a time. You will select the sections you wish to take when applying.

As of 2023, the following costs apply:

• Application fee: $170 (for first-time applicants)
• Registration fee: $85 (for re-examination applicants)
• Examination fees: $238.15 per section

As in most other states, Michigan requires examinees to pass all four CPA exam sections within 18 months. Credit for sections you pass remains valid for 18 months.

After Passing the Exam

You will take a major step toward licensure by passing the Uniform CPA Examination. However, several additional qualifiers apply.

First, you must earn at least 150 semester hours or the equivalent, along with meeting the work experience requirement of at least 2,000 hours obtained over 1-5 calendar years. Finally, you must be at least 18 years of age and of what the Michigan Bureau of Professional Licensing describes as “good moral character.”

Candidates apply for licensure through the Michigan Professional Licensure User System (MiPlus). Licensees seeking to verify their status to employers, clients, or institutions also submit their requests through MiPlus. The Michigan Board of Accountancy evaluates license verification requests.

Maintaining Licensure

Michigan CPA licenses expire biennially on July 31. An exception applies to newly issued licenses active for less than 120 days before the next scheduled expiry date.

Individuals automatically receive renewal notifications by mail at their registered addresses. Renewal notices are usually distributed about 60 days in advance. A $200 renewal fee applies as of 2023.

You can renew your Michigan CPA credentials online. However, you must meet all renewal requirements and submit your renewal application by the license expiration date, or you will lose your ability to legally practice as a CPA. Accountants who continue to practice as CPAs with expired licenses may be subject to disciplinary action.

Continuing professional education (CPE) requirements also apply. Licensed CPAs must complete at least 40 hours of CPE per year. The CPE must include:

• At least eight hours in accounting and auditing
• At least two hours in ethics
• At least one hour specifically in Michigan CPA ethics and standards

Michigan allows non-CPAs to hold membership stakes in CPA firms. However, such firms must be majority-owned by licensees in good standing.

Questions About CPAs in Michigan

How do I become a CPA in Michigan?

Becoming a CPA in Michigan requires education and experience. You must have a bachelor’s degree, at least 150 semester hours of college education, and 2,000 hours of work experience. Education requirements include at least 24 semester hours of both accounting and general business courses.

Who can take the CPA licensure exam in Michigan?

Michigan CPA candidates can take the Uniform CPA Examination after completing bachelor’s degrees covering at least 120 semester hours. Your education must also include accounting and business coursework requirements. You can take the exam before graduating, but you must meet all education requirements within 60 days of completing the first test section.

How many hours do you need to become a CPA in Michigan?

To get a full CPA license in Michigan, you need at least 150 semester hours of college coursework covering accounting and general business. Your education must culminate in at least a bachelor’s degree, and you will also need 2,000 hours of work experience.

Is getting a CPA license in Michigan hard?

Michigan’s streamlined licensing standards reflect those found in most other states. It is no harder to become a CPA in Michigan than any other U.S. jurisdiction.

What is the difference between a licensed CPA and a registered CPA in Michigan?

A qualified professional seeking only to use the CPA title requires registered status. CPAs must hold licensure if they wish to use the CPA title and market their accounting services to paying members of the public.

The post CPA Requirements in Michigan appeared first on Accounting.com.

Author: Alaina McCartney