Recent Developments in CPA Licensure and Accounting Firm Legal Services

The accounting profession is undergoing significant transformations, particularly concerning Certified Public Accountant (CPA) licensure requirements and the expansion of accounting firms into legal services. Notably, Virginia has introduced alternative pathways to CPA licensure, and Arizona has permitted accounting firms to own law practices.

Virginia's New Pathway to CPA Licensure

In February 2025, Virginia's legislature unanimously passed bills HB 2042 and SB 1042, introducing an alternative route to CPA licensure effective January 1, 2026. This initiative, led by the Virginia Society of CPAs (VSCPA), aims to address the profession's talent pipeline challenges by reducing educational barriers.

Under the new legislation, CPA candidates in Virginia can qualify for licensure through one of the following pathways:

1. Traditional Pathway: Complete 150 semester hours of education, obtain a bachelor's degree with an accounting concentration, acquire one year of relevant work experience, and pass the CPA exam.

2. Alternative Pathway: Obtain a bachelor's degree with an accounting concentration, gain two years of relevant work experience, and pass the CPA exam.

This alternative pathway emphasizes practical experience over additional academic coursework, aiming to make the profession more accessible amid declining college enrollments and the emergence of new fields like data analytics. VSCPA President and CEO Stephanie Peters highlighted the importance of this initiative, stating, "Increasing the options accountants have to become licensed has been a major focus... It's crucial we develop new ways to get accountants licensed as CPAs to become the trusted business advisors that help keep our economy running."

Accounting Firms Expanding into Legal Services in Arizona

Arizona has become a pioneer in redefining the boundaries between accounting and legal services. In 2020, the state abolished rules prohibiting non-lawyers from having an economic interest in law firms, allowing alternative business structures (ABS) where entities like accounting firms can own law practices.

In January 2025, KPMG US applied to establish KPMG Law US as an ABS in Arizona. This move positions KPMG to become the first Big Four accounting firm to offer legal services in the United States, providing services such as compliance and contract-related assistance. Christian Athanasoulas, KPMG's U.S. tax practice leader, noted that the firm aims to address client challenges by integrating legal expertise with technology at scale.

Similarly, in February 2025, Atlanta-based accounting firm Aprio announced plans to merge with Scottsdale's Radix Law to form Aprio Legal, LLC. This merger, facilitated by Arizona's ABS regulations, aims to offer clients a seamless blend of accounting and legal services. Aprio CEO Richard Kopelman expressed enthusiasm for the collaboration, stating, "We are thrilled to be the first national accounting and advisory firm to open an ABS law firm and join forces with Radix Law—a combination we know will be a powerful force in Arizona for entrepreneurs and businesses."

Implications for the Accounting Profession

These developments reflect a broader trend of evolving professional standards and service offerings within the accounting industry:

• Enhanced Accessibility: Virginia's alternative licensure pathway may attract a more diverse pool of candidates by valuing practical experience alongside traditional education.

• Integrated Services: Arizona's ABS model enables accounting firms to provide comprehensive solutions, combining financial and legal expertise to better serve client needs.

As these changes unfold, accounting professionals and firms should stay informed and consider how such innovations might influence their practices and service delivery models.