The Complete Guide to CPD Hours for Canadian CPAs

Introduction

As a Canadian Chartered Professional Accountant (CPA), you are required to keep learning to maintain your designation and stay current in your career. While annual CPD hours can be overwhelming, there are smart and easy ways of making this requirement more manageable. In this article, we’ll explore the fundamentals of CPD hours for Canadian CPAs, including what counts as CPD, how many hours are required, and best practices for tracking and reporting.

What Are CPD Hours?

CPD stands for Continuing Professional Development. CPD Hours are units that measure the quantity of time that CPAs spend on activities to upgrade their professional knowledge and skills. These requirements are designed to ensure that CPAs remain current in a fast-changing business environment and are prepared to handle new challenges.

CPD Requirements for Canadian CPAs

All Canadian provinces and territories—except Quebec—follow the same CPD requirements set forth by their provincial regulatory body (e.g. CPA Ontario). 

General CPD Requirements Across Provinces (Except Quebec):

• Annual Requirement: CPAs must complete a minimum of 20 CPD hours each year, of which at least 10 must be verifiable.

• Triennial Requirement: CPAs are required to accumulate 120 CPD hours over a rolling three-year period, with at least 60 hours being verifiable. Additionally, within this period, CPAs must complete a minimum of 4 verifiable hours in professional ethics.

• CPD Cycle: Runs from January 1 to December 31 each year.

• Reporting Deadline: CPD declarations must be submitted by June 1 of the following year.

Quebec-Specific CPD Requirements:

CPAs in Quebec are governed by the Ordre des CPA du Québec, which has its own CPD framework:

• Annual Requirement: CPAs must complete a minimum of 25 CPD hours each year.

• Triennial Requirement: CPAs are required to accumulate 120 CPD hours over three years, including at least 4 verifiable hours in professional ethics.

• CPD Cycle: Runs from September 1 to August 31 each year.

• Reporting Deadline: CPD declarations must be submitted by September 30 of the following year.

Tracking Verifiable and Unverifiable Hours:

It’s important to track both verifiable and unverifiable CPD hours, as CPAs may even be asked to confirm unverifiable hours during audits or compliance reviews. Thus, maintaining accurate records for all CPD activities ensures you are fully prepared to meet reporting requirements and demonstrate your ongoing professional development.

Ways to Earn CPD Hours

Leverage Employer-Sponsored Programs

Many organizations provide in-house training, workshops or seminars that can be counted towards your CPD credits. Some of these options are particularly convenient because they let you meet your CPD goals without having to dedicate time outside of work.

Attend Professional Conferences

Conferences provide opportunities to learn about the latest trends and network with peers. For instance, events like Accountex Canada offer CPD-verified sessions, ensuring attendees can earn continuing professional development credits while gaining cutting-edge knowledge. 

Pursue Specialized Certifications

Earning additional certifications in areas like sustainability or data analytics can enhance your expertise and contribute significantly to your CPD hours. CPDFormula offers various certificate programs that cover specialized topics relevant in today's business environment.

Check out these specialized CPD bundles:

• Certificate Program: ChatGPT for CPAs (20 CPD): This program integrates advanced generative artificial intelligence with accounting principles to improve efficiency, accuracy, and decision-making processes.

• Certificate Program: ESG and ChatGPT Expert (20 CPD): Designed for CPAs and accounting professionals, this program offers a transformative learning experience at the intersection of sustainable finance and AI-driven accounting practices.

• Certificate Program Truth and Reconciliation for CPAs (20 CPD): This certificate program offers a comprehensive exploration of key topics essential for fostering understanding, empathy, and inclusivity within the accounting profession and the broader community.
  
  

Tracking and Reporting CPD Hours

Accurate record-keeping is essential for validating your CPD hours, especially if your provincial CPA body conducts an audit. Keep detailed records of all professional development activities, including:

• Dates and Duration: Note when and how long the activity took place.

• Descriptions: Include learning objectives and how the activity relates to your professional role.

• Supporting Documents: Maintain certificates, transcripts, attendance records, or proof of participation (for verifiable CPD).

Best Practices:

• Use your provincial CPA body's online CPD tracking portal if available.

• Update your CPD log regularly to avoid missing details.

• Keep records for at least 5 years to comply with audit requirements.

Simplify Tracking and Reporting with CPDFormula

To make CPD tracking even easier, CPDFormula offers a built-in CPD tracker accessible via both its app and desktop dashboard. This feature allows you to:

• Log CPD activities in real-time

• Organize Verifiable and Unverifiable Hours

• Easily generate reports for annual declarations and audits

To further simplify your CPD management, CPDFormula provides verifiable certificates of completion for each course and package. These certificates make it easier to report your CPD hours accurately, since they serve as an official proof of your completed activities, streamlining the process for annual declarations and audits.

Failure to maintain accurate records may result in penalties or the suspension of your CPA license if you are audited. Regular tracking not only ensures compliance but also highlights your professional growth.

Making CPD More Engaging

To make CPD a worthwhile experience, and not just a compulsory requirement:

• Connect CPD to Professional Goals: Choose CPD activities that advance your professional goals, whether promotion to a leadership position or specialist status in an area of accounting.

• Seek Interactive Study Opportunities: Engage in workshops or forums that encourage active participation, which makes learning more engaging and fun.
  
  

Conclusion

Applying these strategies, CPD can become a manageable and rewarding part of your professional life. Rather than seeing it as just a compliance requirement, it can serve as a valuable tool for personal growth and career advancement. With the right approach, CPD will help you maintain your CPA designation and support your continuous development in an ever-evolving business landscape. Get started today by exploring resources and courses tailored to your needs at CPDFormula.

Frequently Asked Questions (FAQs)

1. What are unverifiable and verifiable CPD hours?

Verifiable CPD Hours

Verifiable CPD is a learning activity that results in evidence that learning took place and the learning can be verified objectively by someone else. You must keep records and supporting documents of these activities for at least five years in case you are audited. 

Unverifiable CPD Hours

Unverifiable CPD hours refer to qualifying learning activities that cannot be verified objectively. Reading industry-specific magazines and journals keeps you informed and can count towards unverifiable CPD hours. Publications like Canadian Accountant provide insights into current issues and trends in the accounting profession. 

2. How do I recognize CPD opportunities for my field of specialization?

Seek out professional organizations, online learning websites, and conferences that offer courses and workshops in your area of interest. Networking with peers also can lead to discovering helpful CPD resources.

3. How often should I record my CPD?

You should record your CPD as often as possible, ideally once you have completed each activity, for the sake of accuracy and ease of record keeping.

4. What Happens If You Don’t Meet CPD Requirements?

Failing to meet CPD requirements can lead to:

• Non-Compliance Notices

• Fines or Administrative Penalties

• Suspension or Revocation of License

If circumstances prevent you from completing CPD (e.g., medical leave), you may apply for an exemption or deferral through your provincial CPA body.