2026 Can You Get Licensed With an Online Accounting Degree? Requirements, Rules, and What to Know

Imed Bouchrika, Phd

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

Many prospective students wonder if earning an online accounting degree qualifies them for licensure as a Certified Public Accountant (CPA). As of recent data, over 60% of accounting degrees in the U. S. are obtained through online or hybrid programs, reflecting a growing trend in digital education. However, state boards enforce specific education and experience requirements that may affect online graduates differently than traditional students.

This article will clarify the rules surrounding CPA licensure with an online accounting degree, outline the necessary steps, and help readers navigate the nuances of eligibility to make informed educational and career decisions.

Key Benefits of Getting Licensed with an Online Accounting Degree

  • Licensed CPAs consistently earn 10–15% more than their non-certified counterparts, with the potential to increase total career earnings by over $1 million.
  • Professional licensure is often a prerequisite for high-level management positions, such as Controller, CFO, or Partner within public accounting firms.
  • A license provides a competitive edge and superior job security even during economic downturns due to the high demand for specialized auditing and tax expertise.

Can You Get Licensed With an Online Accounting Degree?

Obtaining an accounting license with an online degree is achievable if the program meets specific accreditation standards and covers essential coursework in areas like auditing, taxation, and financial reporting. Candidates must fulfill educational prerequisites that include completing a bachelor's degree with a solid foundation in accounting subjects, often totaling 150 semester hours.  

Licensing boards also require passing the CPA exam and acquiring practical work experience under licensed professionals. Online accounting programs that align with these licensing requirements prepare graduates thoroughly for both the exam and real-world professional demands, making the path to licensure viable for many students.

The benefits of earning a license through an online accounting program extend beyond eligibility. Licensed accountants gain access to regulated career paths such as public accounting, financial auditing, and consulting, often taking on increased responsibilities like certifying financial statements and offering tax advice. This credential tends to enhance salary potential and improve opportunities for career advancement.

Prospective students curious about how to get accounting license with online degree options may also explore related educational fields, including programs like the online AI degree, which showcase the expanding range of reputable online learning opportunities available today.

Table of contents

Do Licensing Requirements for Accounting Vary by State?

Licensing rules for accounting are designed to ensure that professionals maintain a consistent standard of competence and ethics, but they differ considerably from state to state. For instance, the National Association of State Boards of Accountancy reports that some states require as few as 1,000 hours of supervised experience, while others expect 2,000 or more. These variations can significantly affect the path to licensure.

Key areas where state-by-state accounting license requirements differ include:

  • Examinations: While passing the Uniform CPA Examination is mandatory nationwide, certain states require additional state-specific tests. These extra exams may cover regional laws or regulations, influencing the time and preparation needed for candidates.
  • Supervised experience: The amount and type of supervised work required under a licensed CPA vary widely. Some states specify particular industries or roles, which can affect professionals gaining relevant experience if they relocate or pursue diverse career opportunities.
  • Continuing education: Requirements for renewing licenses are not uniform. States differ in the number of continuing education hours required and the approved subject areas, impacting ongoing professional development planning.
  • Renewal policies: Beyond education, states may have different renewal frequencies and fees. Awareness of these differences is critical for maintaining licensure without interruption.

Being informed about accounting licensure rules by state is especially important for those who complete an online accounting degree and consider working across state lines. Those interested in exploring programs can find resources for affordable online options, including business degree online, to align their education with regional licensing demands.

Are Online Accounting Programs Different From Campus Programs for Licensure?

The delivery format of an accounting program-online or on-campus-does not affect eligibility for professional licensure, as long as the program meets state board standards. Increasingly, more candidates who earn accounting degrees online are successfully passing the CPA exam, reflecting growing acceptance of online degrees by licensing authorities.

  • Curriculum coverage: Both online and traditional programs must include essential accounting subjects such as auditing, taxation, and financial reporting to comply with licensure requirements. Ensuring the curriculum aligns with state standards is crucial regardless of format.
  • Practical experience: Most states require applicants to complete supervised work experience under a licensed accountant, which is separate from educational delivery and remains a key licensure component.
  • Skill development and assessment: Online programs incorporate rigorous assessments and assignments comparable to campus-based courses, ensuring that students attain necessary competencies.
  • Employer perception: Although some biases linger, many employers now value accredited online degrees similarly to traditional ones, particularly when candidates demonstrate strong skills and relevant experience.

A licensed professional who earned his accounting degree online shared that selecting his elective courses was a thoughtful process. He explained, "I focused on classes that offered practical case studies and real-world applications since I knew those skills would prove important in my job and later during the CPA exam."

He found some electives more challenging due to the self-paced nature but appreciated the flexibility for balancing work and study. "Sometimes it felt isolating, but the structured online discussions helped me connect with peers and instructors," he reflected.

His journey showed that while online accounting programs differ in delivery style, the outcomes for licensure can be functionally equivalent when students are proactive and choose courses aligned with their career goals.

Does an Online Accounting Degree Require Clinical or Practicum Hours?

Clinical or practicum hours are essential components of many accounting degree programs, providing hands-on experience that prepares students for real-world professional roles and licensure. These supervised hours enable candidates to apply theoretical knowledge in practical settings, building skills critical for certification and career success.

Practicum hours for online accounting licensure vary by jurisdiction but typically require several hundred to over a thousand hours. This ensures candidates receive sufficient exposure to essential tasks such as auditing, tax preparation, and financial reporting within organizations like accounting firms, corporate finance departments, or government agencies.

  • Required Hours and Placements: States and regulatory bodies mandate specific clinical or practicum hour requirements to ensure practical competency. Placements offer real-world application of classroom learning, reinforcing technical accounting skills under professional conditions.
  • Supervision and Mentorship: Experienced professionals oversee practicum experiences, guiding students to develop ethical standards, technical abilities, and professional communication essential for licensure and employment.
  • Skills Development: These hours emphasize practical skills and ethical judgment, bridging the gap between academic theory and workplace expectations crucial for accounting career readiness.
  • Online Program Arrangements: Online accounting degree clinical hour requirements often include coordinating local, in-person placements through partnerships or student-initiated opportunities, blending flexible coursework with necessary hands-on training.

Prospective students exploring online degrees should also consider other professional requirements and programs, such as accredited marriage and family therapy programs online, to understand how clinical experiences integrate across different fields.

What Licensing Exam Is Required After Earning an Online Accounting Degree?

The licensing exam serves as a crucial measure to confirm an individual's expertise and readiness for accounting roles, ensuring candidates meet high professional standards. Success on this exam opens doors to licensure and career progress in the finance sector. The CPA exam pass rate commonly averages near 50%, reflecting its rigorous nature.

Below are key points to understand about this exam for online accounting graduates:

  • Exam Name: The Certified Public Accountant (CPA) exam is the standardized test required for most accounting professionals seeking licensure in the U.S.
  • Content Areas: It evaluates knowledge in four main domains: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation, covering broad technical and ethical topics.
  • Exam Format: The test includes multiple-choice questions, task-based simulations, and written communication tasks designed to assess analytical thinking alongside accounting principles.
  • Preparation Strategies: Candidates often use review courses, practice exams, and group studies to build the skills needed to succeed because of the exam's challenging content.
  • Retake Policies: Most states permit retakes with specified waiting periods if a candidate does not pass on the first attempt, helping manage the exam's difficulty by allowing further preparation.
  • Relevance for Online Graduates: Online accounting program graduates face the same exam requirements as traditional students, emphasizing the importance of accredited coursework and meeting state board criteria.

When asked about her experience, a licensed professional who completed an online accounting degree shared that balancing work, study, and exam prep was demanding but rewarding. She described the CPA exam as "intense and comprehensive," requiring disciplined schedules and disciplined focus.

Even though she faced doubts after an initial unsuccessful attempt, she found that persistence and targeted study helped her overcome challenges. Her journey highlighted how online education combined with rigorous exam preparation can effectively lead to licensure and professional success.

"The flexibility of online classes allowed me to tailor my study time around work, which was essential for my progress," she added, reflecting on how the exam requirement shaped her commitment and growth as a licensed accountant.

Is Supervised Work Experience Required After an Online Accounting Degree?

Yes, supervised work experience is generally necessary after earning an online accounting degree, especially for those seeking CPA licensure. This hands-on training helps develop practical skills that classroom learning alone cannot provide, ensuring professionals are prepared for real-world challenges. Nearly 90% of states mandate candidates complete about 1 to 2 years of supervised work to qualify for certification.

Below are important elements of this experience.

  • Duration: Typically, candidates must complete between 1 to 2 years of supervised employment, depending on state requirements, to meet licensure standards.
  • Work Settings: Practical experience usually occurs in public accounting firms, corporate finance departments, government agencies, or nonprofit organizations, offering exposure to diverse accounting environments.
  • Mentorship: Licensed professionals oversee and guide candidates, providing critical feedback and ensuring that ethical and professional standards are upheld throughout the training period.
  • Skill Development: Focus areas include auditing, tax preparation, financial reporting, and ethical decision-making, equipping candidates with essential capabilities for competent practice.
  • Licensure Relevance: This supervised experience satisfies a core requirement for professional certification and significantly enhances job readiness and career prospects.

Completing supervised work experience helps online accounting graduates validate their skills, build confidence, and meet the regulatory criteria necessary for trusted financial practice.

Does Licensure Reciprocity Apply to Online Accounting Graduates?

Licensure reciprocity allows accounting professionals licensed in one state to obtain a license in another state without repeating all initial requirements, facilitating greater career mobility across regions. This is especially important for those who may relocate or seek work in different states.

Below are key factors that affect licensure reciprocity for online accounting graduates.

  • Eligibility Criteria: Reciprocity depends on meeting education and experience standards set by the receiving state's board of accountancy. Applicants must often demonstrate that their credentials align with state-specific requirements to qualify for transfer of licensure.
  • Program Requirements: Many states mandate that accounting degrees, including those earned online, come from accredited programs recognized by their regulatory authorities. Some may require specific credit hours or coursework, impacting acceptance of online degrees under reciprocity.
  • State Agreements: Reciprocity policies vary widely as they are based on agreements between state boards. Graduates should research individual states' rules since not all accept the same standards or recognize every program equally.
  • Application Process: Typically, applicants must submit transcripts, proof of passing the Uniform CPA Examination, and verification of relevant work experience. Certain states might require additional exams or documentation, especially to clarify online degree credentials.
  • Potential Limitations: While online degrees generally qualify when accredited, some states scrutinize program delivery methods or require extra validation. Understanding these nuances is crucial for online accounting graduates planning licensure across state lines.

Those researching licensure reciprocity for online accounting graduates or comparing online accounting degree license transfer rules will benefit from careful consideration of these variables to ensure smoother transitions. For additional context on affordability and online options in higher education, consider exploring programs like the cheapest online doctorate in educational leadership.

What Are the Pros and Cons of Online Accounting Programs for Licensure?

Online accounting programs have seen over a 30% increase in enrollment during the last decade, driven by their convenience and appeal to students focused on professional licensure. Many prospective accountants prioritize programs that meet certification requirements like the CPA, making licensure outcomes a key factor in their decision.

The following outlines the main benefits and drawbacks of pursuing an online accounting degree for licensure purposes.

Pros

  • Flexibility: Online formats allow students to balance studies with work or personal commitments, helping them complete licensure coursework without geographic constraints.
  • Accessibility: Programs are available to a broader audience, including those far from campuses, ensuring more candidates can pursue accounting credentials.
  • Aligned Coursework: Many online options offer curriculum tailored to meet the education criteria required for professional certification exams, supporting licensure eligibility.

Cons

  • Limited Practical Training: Lack of hands-on experiences such as internships or labs may affect skill development important for real-world accounting tasks and licensure assumptions.
  • Networking Constraints: Reduced face-to-face interaction can limit professional connections and mentorship opportunities valuable during certification and employment.
  • Employer Perceptions: Some employers or licensing boards may view online degrees with caution, although accreditation status greatly influences acceptance.

Does Getting Licensed With an Online Accounting Degree Affect Salary?

Obtaining licensure with an online accounting degree significantly impacts earning potential, with licensed professionals typically earning 10% to 15% more than their non-licensed counterparts. This salary difference reflects the value employers place on verified expertise and professional standards.

Understanding the impact of online accounting degree on licensed accountant salary is essential for those pursuing credentialing after graduation.

Licensure influences salary and career advancement in several key ways:

  • Access to Higher-Paying Roles: Licensed accountants are qualified for advanced positions such as senior accountant, auditor, or financial controller, which generally offer higher compensation due to increased responsibilities and expertise required.
  • Eligibility for Leadership Positions: With licensure, professionals are more likely to be considered for management and leadership roles within organizations, bringing opportunities for salary increases and career growth.
  • Specialized Responsibilities: Holding a license enables accountants to take on specialized assignments including tax planning, forensic accounting, or consulting, areas that often command premium pay due to their complexity and required skill set.
  • Increased Job Security and Credibility: Licensed accountants benefit from enhanced professional credibility, which leads to greater job stability and stronger negotiating power in salary discussions.

Employers commonly prefer or require licensure for advanced positions, giving licensed graduates an advantage in promotions and salary negotiations. For those who complete an online degree, meeting licensure requirements and passing necessary exams remains equally important for accessing these benefits.

Prospective students may explore a variety of online degree programs that prepare them to meet these professional standards.

Salary differences for licensed accountants with online degrees demonstrate that online education can provide a solid foundation for professional credentialing and the associated financial rewards.

What Jobs Can You Get With or Without a License as an Online Accounting Degree Holder?

Licensure plays a crucial role in shaping career opportunities for online accounting degree holders, often determining the level of responsibility and salary potential. Many graduates seek positions both with and without a license, depending on their professional goals and industry requirements. Studies show licensed accountants earn about 10% to 15% more than those without credentials.

The following sections outline common jobs by licensure status.

Jobs With a License

  • Auditor: Examines financial statements and internal controls to ensure accuracy and regulatory compliance, often requiring a CPA license and offering pathways to senior financial roles.
  • Tax Advisor: Provides expertise in tax planning and preparation, helping clients comply with tax laws while maximizing savings; licensure enhances credibility and earning potential.
  • Forensic Accountant: Investigates financial discrepancies and fraud, a specialized role typically necessitating licensure and leading to consulting or leadership positions.

Jobs Without a License

  • Accounting Clerk: Handles routine financial data entry and record maintenance, foundational work that supports business operations without requiring certification.
  • Payroll Specialist: Manages employee compensation and benefits processing, focusing on accuracy and timeliness, commonly accessible without a license.
  • Junior Accountant: Assists with basic accounting functions such as reconciliations and reporting, gaining practical experience that can prepare for future licensure and advancement.

What Graduates Say About Getting Licensed with an Online Accounting Degree

  • Sawyer: "The affordability of the online accounting degree program truly surprised me, especially considering the quality of education I received. With costs significantly lower than traditional routes and licensure fees well within reach, it was a smart investment. The flexibility of the online format allowed me to balance work and study, and now as a licensed professional, I see how pivotal that education has been in advancing my career."
  • Elijah: "Looking back, the modest expenses associated with the online accounting degree combined with licensure fees made a huge difference in my decision to pursue this path. The program's online structure was challenging but rewarding, encouraging self-discipline and deep understanding. Holding my license today validates the effort, and it has opened doors to opportunities I hadn't imagined before."
  • Akio: "From a professional standpoint, completing an online accounting degree and earning my license was a cost-effective solution that didn't compromise on rigor or reputation. The course delivery was straightforward and practical, making complex principles accessible. Earning licensure has not only boosted my credibility but also cemented my role in the accounting field."

Other Things You Should Know About Accounting Degrees

What additional educational qualifications are often needed beyond an online accounting degree for licensure?

Most states require candidates to complete 150 semester hours of college coursework to qualify for the CPA exam, which is more than the typical 120 hours earned in a bachelor's degree. This means online accounting degree holders often need to pursue additional coursework, such as a master's degree or certificate programs, to meet the credit hour requirement.

Can work experience from freelance or consulting roles count toward licensing requirements?

Work experience for accounting licensure generally must be supervised and verified by a licensed CPA or equivalent professional. Freelance or consulting work without proper supervision or verification usually does not fulfill this requirement, so candidates should ensure their experience aligns with their state's regulations.

Are there limits on the institutions from which candidates can earn their accounting degree for licensure?

Licensing boards typically require degrees to be from regionally accredited institutions recognized by the U.S. Department of Education. Accredited online programs that meet these standards are accepted, but degrees from unaccredited schools or foreign institutions may not qualify for licensure eligibility.

What are the licensing requirements for an online accounting degree in 2026?

In 2026, to become a licensed accountant with an online degree, candidates must pass the CPA exam, complete 150 college credit hours, and gain relevant work experience. Most states require education from accredited institutions. Ethics courses are also often essential for licensure.

References

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