ABA Accredited Business Accountant

The ABA Accredited Business Accountant® and Accredited Business Advisor credential has been developed to recognize accountants who have demonstrated entry-level knowledge and skill to provide competent financial accounting, financial reporting, financial statement preparation, taxation, managerial accounting, business law, and ethics for small to medium-sized businesses in the United States. The ABA credential is a prestigious indicator to clients, potential clients, employers, and the public at large that the business accountant has proficiency in the accounting and taxation field. In states where the use of the term ‘accountant’ is restricted, the word ‘advisor’ is used instead. ABOUT THE EXAM The ABA Accredited Business Accountant® Exam is a two-part exam, each containing 100 multiple-choice questions. The two parts covered by the exam are: Part I: Financial Accounting and Financial Statement Preparation, Presentation, and Reporting Part II: Business Consulting Services, Taxation, Business Law and Ethics Candidates are given three (3) hours to complete each 100-question exam. For a more detailed look at the individual topics covered, please see the ABA Exam Blueprint. Candidates cannot earn certification without passing both certification examinations. The passing grade is 70 on each part of the exam — Part I and Part 2. A candidate who does not pass the full exam, but does pass one part, either Part I or Part 2, has 18 months to re-take that part of the exam. A candidate failing to pass both parts within the designated time must reapply and retake both parts. EXPERIENCE REQUIREMENTS ACAT seeks to ensure that all accredited individuals possess theoretical knowledge and the practical knowledge necessary to be successful practitioners. Candidates for the ABA must be at least 18 years of age and must have a minimum of three (3) years of professional experience, or two (2) years of college-level accounting and one (1) year of professional experience. Individuals who pass the exam but have not met the three-year experience minimum may promote themselves as having “passed the ACAT Examination for Accreditation in Accountancy” but are not entitled to use the ABA designation. RECOGNITIONS AND EXEMPTIONS Annual Filing Season Program Record (AFSP) ABA credential holders qualify for the IRS’s Annual Filing Season Program Record of Completion without taking the Annual Refresh Course and Annual Exam. Learn more about the AFSP Exemption. State Recognition In Iowa and Minnesota, achieving the ABA designation meets state regulatory requirements to practice public accountancy. Minnesota requires a 75% passing score on both sections of the exam. Learn more about the Minnesota RAP Program. Learn more about the Iowa LPA. The use of the term “accountant” for non-CPAs varies by state. In states where the term “accountant” cannot be used in any form or in states that allow the use of the term “accountant” as a standalone word but with a disclaimer (AL, AK, AR, CA, HI, IN, KY, LA, ND, NV, NY, OH, OK, PA, RI, SC, SD, TN and TX), accredited individuals use Accredited Business Advisor™. The process for attaining the credential and rules for use are the same. Please check with your state board of accountancy for your state accountancy compliance rules. MAINTAINING YOUR CREDENTIAL Along with payment of renewal fees and adherence to ACAT’s Code of Ethics and Rules of Professional Conduct, individuals holding the ABA Accredited Business Accountant® credential must earn 40 CPE hours every year: with at least 8 hours in accounting or related subjects (finance, business management, technology, or business law); at least 8 hours in taxation; and 2 hours in ethics. CPE requirements are prorated for those who earn an ACAT credential after the start of a reporting cycle. For additional information, visit our CPE requirements page. For a more detailed overview of all requirements needed to maintain your credential, please visit the page for Current Credential Holders.