In addition to CPA mobility, reciprocity and substantial equivalency also play a pivotal role in the efficiency of the accounting profession, safeguarding of the public interest, and facilitation of the seamless flow of talent across state and international borders. Reciprocity in the context of CPA licensure means that a CPA who holds a license in one state can obtain a license in another state based (at least in part) on the pre-existing home-state license. Reciprocity promotes the free movement of CPAs, allowing you to pursue career opportunities wherever they arise. It is not the same as mobility. Substantial equivalency ensures that CPA licensure standards across states are comparable in terms of the three E’s: education, examination, and experience requirements, plus good moral character. The significance of substantial equivalency lies in protecting the public interest by ensuring that all CPAs meet a consistent set of high-quality standards and in promoting trust and confidence in the profession. The National Pipeline Advisory Group has made a commitment to exploring the pipeline challenges and digging into the complex topic of substantial equivalency. As we heard from the AICPA and NASBA during the NESCPA Board of Directors meeting in August, changes in licensing requirements could cause major disruption to CPA mobility as well as to reciprocity and substantial equivalency. While the Uniform Accountancy Act (UAA) calls for 150 hours of education to be licensed, flexibility does exist in how and when that education is achieved. The Advisory Group will be discussing how to maintain the seamless mobility our profession enjoys while creating additional flexible solutions that work within the present framework. It is everyone’s goal to strengthen the CPA pipeline and ensure the sustainability of the profession. But as Jennifer Wilson of ConvergenceCoaching said during the Women’s Summit, “to compete and sustain, you’ll have to get faster at driving change.” Do you have ideas that might offer an alternative path to the 150hour education requirement? We need your input. We will soon be sharing a survey with you to help identify your pain points and offer potential solutions. There will be additional opportunities for input as well, including a national survey later this year. Please respond when the surveys are released or feel free to share your thoughts with me at any time at joni@nescpa.org. Joni Sundquist is president and executive director of the Nebraska Society of CPAs. You may contact her at (402) 476-8482 or joni@nescpa.org. profession included. While there’s no silver bullet, formulating strategies to ensure a vibrant and sustainable future for the profession is imperative. With this in mind, the American Institute of CPAs (AICPA) passed a resolution to develop a National Pipeline Strategy in May 2023 that included the development of a National Pipeline Advisory Group with broad representation from various accounting profession stakeholders. ConvergenceCoaching® LLC, based in Bellevue, Neb., is acting as the independent facilitator for this effort. Led by Jennifer Wilson, ConvergenceCoaching is a national leadership and management consulting firm that has worked extensively on accounting-related projects in leadership development, change management, and data analysis. (Nearly 160 Nebraska CPAs had the opportunity to engage with Wilson at the Society’s Women in Accounting Summit, held Aug. 30 in Ashland.) The National Pipeline Advisory Group began meeting in July and will report on its progress at the AICPA’s Fall Council meeting in October with the intention of presenting a draft plan in May 2024. This collaborative process will result in a research-driven national pipeline strategy that, among other things, addresses the image of the profession as well as educational and experience requirements, and outlines short and long-term actions to address the profession’s human capital needs. The AICPA Council resolution affirmed a commitment to preserving mobility for CPAs while considering key components for licensure. CPA mobility refers to the ability of CPAs to practice in states other than those in which an individual is licensed, without having to obtain a new license or permit to practice from other states. This concept recognizes the evolving nature of work, where professionals frequently move or work on assignments that span multiple states. Without mobility, CPAs would have to navigate a complex web of state-specific requirements, leading to administrative inefficiencies and increased costs. Mobility streamlines the licensing process, making it easier for CPAs to serve clients across state lines. The significance of substantial equivalency lies in protecting the public interest by ensuring that all CPAs meet a consistent set of high-quality standards and in promoting trust and confidence in the profession. 7 www.nescpa.org
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