In order to qualify for the Inactive status a licensee’s current job duties cannot require the use of accounting, financial, tax or other skills that are relevant, as determined by the VBOA. This does not exclusively apply to those engaged in public accounting as many positions in other industries recognize the significant value of the CPA title.
The CPA title indicates that the licensee’s skills are up-to-date and relevant to today’s business challenges. CPE is required to maintain professional competence and becoming a better professional. CPE can be earned in topics that are relevant to one’s specific career.
If the licensee is not currently providing services, including on a volunteer basis, to the public, as a consultant, or to or on behalf of an employer, they may not be required to meet the VBOA’s CPE requirements.
Professional roles with titles such as business, financial analyst or consultant that are engaged in tasks like evaluating cash flow, budgeting or establishing performance indicators are all roles that typically would not qualify for the Inactive status. If a person’s CPA license or accounting degree was considered during the hiring process, they likely will not qualify for the Inactive status. Even CPAs who work in IT in any type of audit or compliance function, or who work primarily on/in finance or accounting programs, will most likely not qualify.
Please see examples of jobs that generally qualify for the status and some that do not qualify. Job titles are not always indicative of approval or denial of status. Each application is reviewed on the individual licensee.
Generally qualify for Inactive
- Not employed
- Teacher (non-accounting)
- Medical doctor
- Stay at home parent
Do not qualify for Inactive
- Chief financial officer (CFO)
- Business analyst
- Financial analyst
- Chief Executive Officer (CEO) of banking institution
- Finance or accounting software developers or sales
- Tax attorney
- Director of finance
- Financial or risk industries
- Budget analyst/Manager
- Accounting professor
- IT audit/compliance
- Financial audit/compliance
Apply for the Inactive status by completing the Inactive application and submitting it to the VBOA, along with a copy of an official job description. Inactive CPAs must also renew their license annually by June 30.
Please note: Licensees must be pre-approved for the Inactive status to be exempt from CPE requirements. Licensees cannot apply for this status when they have been selected for a CPE audit. If a licensee has not been approved for the Inactive status at the time of CPE audit selection and notification, the licensee is responsible for meeting the VBOA’s CPE requirements.
The VBOA believes educators at the college level who teach accounting, finance or tax do require the use, or knowledge, of this subject matter in order to teach. Next to individuals in public accounting, educators of these subjects have the largest potential impact on the accounting and CPA profession.
Such educators are expected to and must meet the VBOA’s CPE requirements. By law, it is not required to hold a CPA license to teach these courses, but those that do must obtain the required hours of CPE.
For questions regarding status qualifications, please contact the VBOA at (804) 367-8505.
Return to Active status
If a licensee plans to start providing services to the public or to or on behalf of an employer, they must request a change in status to Active before providing these services and be approved for the status change by the VBOA. In order to begin providing services, a licensee is required to meet the requirements of VBOA regulation 18VAC5-22-90.