What it means
In the United States, accountants are licensed by individual state boards of accountancy, not by one national body. Each state decides who can use the CPA title, what experience and education are required, and how licences are renewed.
NASBA brings those boards together so that standards can be discussed and shared. NASBA also provides practical services.
It maintains databases and systems that help boards manage exam candidates and licensing records, and it works alongside other bodies in the process that lets candidates sit the CPA Examination. Many candidates deal with NASBA directly when they register or check their eligibility, and its systems also help boards share information about licence holders.
Another important area is continuing professional education, or CPE, the ongoing training that licensed accountants must complete to keep their licences. NASBA runs a registry of approved training providers, which gives accountants and boards confidence that courses meet quality standards.
The association also works with the American Institute of CPAs on the Uniform Accountancy Act, a model law that states can adopt to align their rules. Because states often differ, these model rules make it easier for CPAs to work across state lines and for firms to operate in several states.
NASBA is also a convening body, running conferences and committees where regulators discuss emerging issues such as technology, remote work and ethics. Those discussions often shape later changes to state rules, so they matter to firms that must follow them.
For a non-finance manager, NASBA matters when you rely on an accountant's credentials or hire a CPA-led firm. You can ask whether the person is licensed in the relevant state, and the state board, supported by bodies such as NASBA, is the place to check.
In practice
Real-world examples.
Example
A graduate wants to become a CPA and applies to sit the exam. The registration and eligibility steps run through systems that the state board and NASBA operate together. She tracks her application status online and receives notices when each stage is completed. When she passes all sections, the state board, not NASBA, issues her licence.
Example
A tax partner at a mid-sized firm needs to complete her annual training. She chooses courses from a provider listed on NASBA's registry, so the hours are readily accepted by her state board. She completes the course online in evenings and avoids a last-minute scramble before renewal. Her firm keeps the certificates in a shared folder in case the board audits her records.
Example
A manufacturer hiring an external auditor checks that the lead partner holds an active licence. The finance director uses the state board's public look-up and learns that the board's standards follow the model rules developed with NASBA. She files a copy of the result in the audit selection records. The same check is repeated every year when the auditor is reappointed.
Case study
Seen in the real world.
Calder and Finch is an illustrative, fictional accounting firm with offices in three states. Its partners found it hard to keep track of different licensing and training rules for 40 accountants across those states.
The firm appointed a compliance manager who built a calendar based on each state board's requirements and used the national CPE registry to check that every course counted. Within a year the firm had no missed renewals, and the partners no longer spent evenings chasing certificates.
In this illustrative story the manager also started sending clients a short note on how licences are verified. The exercise showed how common standards help firms working across state boundaries. Clients said the note increased their confidence in the firm's controls.
Watch out
Common mistakes.
- Assuming NASBA licenses CPAs, when licences are issued by individual state boards.
- Believing CPE rules are identical in every state, when each board sets its own requirements for hours, subjects and reporting deadlines.
- Confusing NASBA with the American Institute of CPAs, which is a separate professional body that focuses on the profession's standards and member services.
Questions
People also ask.
Who are NASBA's members?
Its members are the state boards of accountancy from the states and territories. Individual accountants are licensed by those boards and are not members of NASBA itself.
Does NASBA write the CPA exam?
No, the exam is developed by a separate professional body, with NASBA supporting the process through its candidate systems. Candidates should always confirm the current steps with their own state board before applying.
How can I check if a CPA is licensed?
Use the public licence look-up on the relevant state board's website. Check the licence status, expiry date and any disciplinary history before relying on the person's work.
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