What's the deal with CPE?

What is CPE?

Continuing Professional Education (CPE) is an ongoing educational process that enables CPAs to maintain and enhance their professional competence throughout their careers. It is not merely a requirement to renew licenses, but a commitment to staying updated with the latest industry standards, technological advancements, and regulatory changes. Completing your CPE is not only increasing your knowledge and ability, it is also an action that shows your dedication to the profession and your duty of care.

Why is CPE Essential for CPAs?

CPE ensures that CPAs are well-versed in the latest accounting principles, tax laws, and ethical standards, equipping them to provide accurate and valuable insights.

Types of CPE Activities

Continuing Professional Education credits can be accomplished in a number of ways. It does not have to be reading accompanied by quiz questions. Here are just a few examples of way to achieve CPE credits

1. Seminars, Workshops and conferences:

Attending seminars and workshops hosted by reputable organizations allows CPAs to delve deep into specific topics. This might be the perfect type of CPE if you’re really interested in moving your career into a specific niche or industry as you’ll be able to meet experts and network.

2. Online Courses and Webinars:

Online platforms offer a plethora of courses tailored to CPAs. These courses cover a wide array of subjects, enabling CPAs to learn at their own pace and from the comfort of their homes or offices.

3. Self-Study:

CPAs can engage in self-study programs, including reading articles, books, or research papers. Additionally, they can participate in online forums and discussions, fostering a sense of community and enabling knowledge exchange.

4. Teaching and Mentoring:

Sharing knowledge is a powerful form of learning. CPAs can teach or mentor aspiring accountants, enhancing their own understanding of the subject matter and reinforcing fundamental concepts.

5. Podcasts

Podcasts have become one of the most popular forms of educational content so it is no surprise NASBA has approved podcasts as an acceptable form of CPE. However, as with any of these other methods of CPE, make sure that it is either approved by NASBA as applicable CPE credit, or falls within the designated regulations of CPE.

CPE Topics

And not only can CPE credits be earned in many different formats but also in many different topics. There are CPE courses which cover soft skills such as leadership and teamwork. You can also earn CPE learning about topics such as real estate, AI, or blockchain. So if you have a specific interest you want to learn more about you can gain that knowledge and CPE at the same time. However there are some areas you must cover, as shown by the California requirements.

Specifics of CPE

• In general you will earn 1 CPE for 50 minutes of work.

• CPE is governed by each state’s accounting board, therefore requirements vary from state to state, but in general CPA’s are required to complete 80 CPE credits every 2 years. Be sure to check your state’s specific guidance to be sure.

For example, over a 2 year period in California for example, you need the following:

• 80 hours

• 20 hour yearly minimum

• 40 hours in technical subjects

• 12 hours yearly minimum in technical subjects

• 4 hours in Ethics

If a CPA does not complete their required CPE they could face punishments such as license suspension or fines.

CPE course can be purchased online, or may be provided by your employer.

Conclusion

Ultimately CPE is a requirement for all CPAs in order to continue practicing. And although it is a task we are required to do, it is a great opportunity. It gives CPA’s a chance to not only improve their skills and keep their knowledge fresh, it allows CPAs the opportunity to pursue skills and interests that they may not get familiar with in their job. So make the most of your CPE because you never know where those skills could take you.

Notes/Recommendation

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