Individual CPAs

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An individual certified public accountant (CPA) in Texas is a person who holds a license from the Texas State Board of Public Accountancy (TSBPA) to provide accounting and financial services to the public. This individual has met rigorous educational, examination, and experience requirements and is authorized to perform tasks such as preparing tax returns, providing financial advice, and issuing reports on financial statements.

Licensing Overview

The Licensing section handles the processing and issuing of licenses to certified public accountants (CPAs), public accountants (PAs), foreign applicants, and public accounting firms.

Key functions of the TSBPA related to licensing include:

Processing Applications: The TSBPA processes applications for individual and firm licenses, ensuring that all applicants meet the required educational, experience, and examination standards.
Issuing Licenses: Once requirements are met, the Board issues licenses to CPAs, PAs, and public accounting firms that wish to practice in Texas.
Regulating Practice: The Board oversees the professional conduct of licensees and investigates any allegations of misconduct or violations of the Texas Public Accountancy Act.
Rulemaking: The Licensing and Enforcement staff also prepare and file proposed changes to Board rules with the Texas Secretary of State.

Frequently Asked Questions

I have a Texas individual CPA license but no Texas firm license. What sort of work am I allowed to do in Texas?

With an individual Texas CPA certificate and license, you may perform non-attest services for clients. Attest services, however, may only be provided by a licensee in Texas through a firm licensed by the Board. Bookkeeping, tax work and other non-attest services may be provided by a licensee using the CPA credential in an unlicensed entity so long as each written or promotional statement that refers to a CPA’s designation and his or her association with the unlicensed entity in the client practice of public accountancy include the statement: “This is not a CPA firm and these services are not regulated by the Texas State Board of Public Accountancy.” The statement must be in conspicuous proximity to the name of the unlicensed entity and be printed in a size at least equal to, and a type not less bold than that contained in the body of the advertisement or written statement.

If the advertisement is in audio format only, the disclaimer shall be clearly declared at the conclusion of each such presentation. See Sections 901.003, 901.351, 901.456, and 901.460 of the Public Accountancy Act and Board Rule 501.81(a) & (c). “Attest service” includes an audit, review, compilation, or other assurance engagement that must be performed in accordance with standards promulgated by the American Institute of Certified Public Accountants, or other accountancy organization recognized by the Board. It does not include preparation services as provided for in Section 70 of SSARS 21. See Section 901.002(a)(1) of the Public Accountancy Act.

I am licensed in one of the other fifty U.S. states but I am not a licensed Texas CPA. What sort of work can I do in Texas?

If your principal place of business is one of the fifty U.S. states, you may enjoy all of the rights and privileges of being a CPA in Texas without obtaining a license from the Board, because your home state’s qualifications for licensure are substantially equivalent to those in Texas.

If you provide attest services, your work must be performed through a licensed Texas CPA firm.
If you permanently move to Texas, then you must obtain a personal license from the Board if you wish to practice or use your “CPA” designation in Texas.

You can find more information by reviewing the Out-of-State Practice Privilege page. For more information about licenses for out-of-state firms, you can contact the Licensing Division at 512-305-7853 or email Licensing.

Are CPAs allowed to advertise through direct mailings?

Direct mailings are permitted so long as they comply with the Board’s rules and regulations regarding advertising. Under Board Rule 501.82(d), licensees who send out direct mailings must retain a copy of the mailing and the list of persons it was sent to for at least 36 months. The only exception to this rule is if the mailing is directed at an existing client, someone who is “seeking to secure the performance of professional services,” or someone who invited the communication. Board Rule 501.82 generally sets forth the advertising standards that Texas CPAs must meet.

I am leaving my CPA firm. May I call my former clients and tell them that I am leaving? May I take some of their files with me when I go?

A CPA may contact clients and make them aware of the fact that they are leaving their firm (and providing them with contact information for after they leave the firm). Board Rule 501.82(e) addresses communication with prospective and existing clients, and may be relevant. In some ways, the rules for communication with prospective and existing clients differ.

Absent an agreement between the CPA and their former firm, or between the client and the firm, the client and the work papers developed by the CPA for a firm’s client belong to the firm.

I am a CPA facing a possible conflict of interest in my work. What should I do to protect my clients and myself?

Board Rule 501.73(b) states: “A conflict of interest may occur if a person performs a professional accounting service or professional accounting work for a client or employer and the person has a relationship with another person, entity, product, or service that could, in the person’s professional judgment, be viewed by the client, employer, or other appropriate parties as impairing the person’s objectivity. If the person believes that the professional accounting service or professional accounting work can be performed with objectivity, and the relationship is disclosed to and consent is obtained from such client, employer, or other appropriate parties, then this rule shall not operate to prohibit the performance of the professional accounting service or professional accounting work because of a conflict of interest.” However, disclosure and consent will not suffice when the service requires independence. See Board Rule 501.73(c).

If you perform a service that requires independence, such as an audit or review, the Texas State Board of Public Accountancy recommends that you consult with the organization that promulgates the independence standards applicable to that type of work (be it the AICPA or the GAO) in order to obtain guidance specific to those standards.

I am a CPA facing conviction for a felony, or a sentence of deferred prosecution or deferred adjudication. What will happen to my CPA license once I am convicted/sentenced?

Under Board Rule 501.90, a final felony conviction is a “discreditable act,” which must be reported to the Board within 30 days (Board Rule 501.91(a)). See Board Rule 519.7 for a complete list of misdemeanor offenses that must be reported to the Board and may result in disciplinary action against a CPA. Deferred adjudication agreements concerning a felony, a crime of moral turpitude or crime involving fraud, dishonesty or abuse of alcohol or controlled substances must be reported to the Board.

Once the Board receives notice of the conviction or deferred adjudication, an investigation is opened and the matter is treated like any other complaint brought to the Board.

How do I know if a complaint has been filed against me?

The Board’s Enforcement Division will send written notification when an investigative file has been opened against you and ask you to respond to the allegations.

What if I disagree with the Enforcement Committee's recommendations resulting from a complaint, to whom do I appeal?

CPAs can reject the recommendation and request a hearing before an Administrative Law Judge (ALJ). A complainant may not appeal a Board decision to dismiss the complaint.

I'm a CPA. Do I need an attorney to represent me if a complaint has been filed against me?

The decision to retain or consult legal counsel is entirely yours. The Board does not require that you hire an attorney, and most CPAs do not.

When can I take retired status and what accounting services may I provide after I retire?

Under Board Rule 515.8, a licensee who is at least 60 years old and has affirmed that the licensee has no association with accounting may be granted retired status at the time of license renewal. The licensee who takes retired status may only serve without compensation on a Board of Directors, or Board of Trustees, or provides volunteer tax preparation services, participate in a government sponsored business mentoring program such as the Internal Revenue Service’s Volunteer Income Tax Assistance (VITA) program or the Small Business Administration’s SCORE program or participate in an advisory role for a similar charitable, civic or other non-profit organization continues to be eligible for retired status. The licensee may not provide the following accounting services: work that requires the specialized knowledge or skills associated with certified public accountants, including but not limited to issuing reports on financial statement(s); preparation engagements pursuant to SSARS; providing management or financial advisory or consulting services; preparing tax returns; providing advice in tax matters; providing forensic accounting services; providing internal auditing services; accounting, auditing and other assurance services; providing litigation support services; and recommending the sale of a product if the recommendation requires or implies accounting or auditing skills.

If the licensee in retired status provides the accounting services listed above for compensation, they jeopardize their retired status. If the licensee decides to reenter into the workforce, they must notify the Board and request a new license renewal notice and pay the license fee established by the Board for the period since they became employed; complete a new license renewal notice; and meet the CPE requirements for the period since they were granted the retired status as required by section 523.113(3) of the Board Rules (relating to Exemptions from CPE).

Reporting CPEs

Licensees can report CPE courses throughout the year, as soon as they are completed.

Review your CPE requirement – Your CPE requirement will be calculated each business day. If you report courses throughout the year the remaining requirement will always be available.
Review CPE courses previously reported – You can review the courses that you have reported to meet requirements for previous license periods.
Report your CPE – Report CPE courses by technical, non-technical, and ethics categories.