Active vs. Inactive CPAs
What to consider when choosing the status of your CPA license
Active Status |
Inactive Status |
|
|
If you engage in the practice of public accountancy, you are required to hold a license in active status.
|
If you are not practicing public accountancy, you may renew your license in inactive status without
completing CE or PC&E.
|
|
| Requirements |
You must complete 80 hours of CE in the two-year period immediately preceding your license expiration date.
|
Pay renewal fee and submit a renewal form to maintain a current license. Effective Jan. 1, 2010 CPAs with inactive license status must place "inactive" immediately after "CPA," the title "certified public accountant," the CPA designation or any other reference that would suggest you are licensed by the CBA, on business cards, stationery, résumés, websites or other business communications. An inactive license may be converted to active status prior to the next expiration date by applying for license conversion and completing required CE. The license will not become active until it has been processed and approved by the Board.
|
|
License Cost
|
$200 Biennial Renewal Fee
|
$200 Biennial Renewal Fee
|
| Advantages |
Proudly display your CPA designation as a reminder to clients, colleagues and the public that you stay current with the profession’s ever changing standards, have a broad base of knowledge and maintain the highest level of ethical conduct.
Keeping current on accounting, taxation and regulatory issues allows you to bring valuable insight to your company by determining how new accounting standards will impact your business. In uncertain economic times, an active license differentiates you from your peers and provides greater professional opportunities. Your current position may not require an active license, but staying active allows you to make the transition in an instant if necessary.
|
Less money and time spent on required continuing education
|
| Disadvantages |
Time/costs associated with CE required to maintain active license status.
|
|
For more detailed information, please refer to CalCPA’s FAQ for Converting from Inactive to Active Status or The California Board of Accountancy website.
