Missouri governor signs CPA licensing bill, effective next month

Missouri Gov. Mike Kehoe, a Repulican, signed legislation (Senate Bill 1233) into law on Monday establishing an alternative licensing path for certified public accountant candidates, according to a release from the governor’s office and a social media post from the Missouri Society of CPAs.

The new rules, effective Aug. 28, ease educational requirements for prospective CPAs by offering an optional route to becoming certified that entails completing a bachelor’s degree with accounting course work along with two years of professional experience and passing the CPA exam, according to MOCPA.

Details around the exact courses that the bachelor’s degree must include have been discussed and are poised to be approved by the Missouri State Board of Accountancy as early as July 30, according to MOCPA’s Dena Hull, vice president of strategy and communications. “It might seem like a quick turnaround but this has been a year in the making,” Hull told CFO Dive, when asked about the law’s August effective date.

The Show Me State joins over 40 others that have eased the education requirements for CPAs by adding a less costly option: an extra year of experience in place of 150 college credit hours — the equivalent of five years of post-secondary education, CFO Dive previously reported.

CPA licensing reform is part of an industry push to attract a new generation of accountants as it tackles a labor shortage that has hit some sectors — such as rural regions and government agencies — harder than others.

There are some signs that the shortage may be easing as more layoffs have risen and automation and outsourcing has filled some labor gaps. At the same time, a recent Controllers Council survey found that 61% of finance leaders reported they are experiencing either minor or significant shortages of finance and accounting talent, up from 46% in the prior year, CFO Dive previously reported.

The CPA legislation has largely enjoyed bipartisan support as many lawmakers see it as a workforce development tool. Still, the transition has raised concerns about how the industry and educators will ensure the next generation of accountants have the training needed to ensure they can deliver accurate and trustworthy financial reports.

“Sitting on the advisory board for the accounting department at UMSL has given me much to think about for the pros and cons of this move,” Andrew Berhorst, an operational CFO, said in a comment on LinkedIn responding to the news of the bill’s signing on MOCPA’s page. “My takeaway is…that the accounting department at the University of Missouri-St. Louis Ed G. Smith College of Business [is] meeting this change head on and making great plans!”

Just a handful of states — Michigan, Massachusetts, North Dakota, Wyoming and Florida — have yet to formalize the licensing reforms that have swept the nation, according to data from the MOCPA, which closely tracks the legislative initiative.

Kehoe’s move comes shortly after Rhode Island Gov. Dan McKee and Vermont Gov. Phil Scott signed similar legislation into law last month, CFO Dive previously reported.