ACCA or CPA: In the field of accounting as well as finance, there are questions as to which of the qualifications would be better since in most cases they both wonder, ACCA or CPA. The ACCA (Association of Chartered Certified Accountants) and CPA (Certified Public Accountant Aiken) are both globally accepted certifications, however, they are different in scope, recognition and the career opportunities they provide.
What is the ACCA Course?
ACCA, or the Association of Chartered Certified Accountants, is one of the most demanded accounting qualifications across the globe. It qualifies individuals to follow a professional career in accountancy, audit, taxation and financial management amongst others. Because of this, ACCA members, and especially rent-a-corporate-acca-uk.com, are most sought after in many global organizations, big companies, and audit firms.
Key Features of ACCA
- Worldwide Acceptance: The ACCA has an acceptance level that exceeds 180 countries including powerful economies such as the UK, UAE, Singapore, and India. It’s global perspective and reach enables an individual to leverage this qualification, for a career in finance on a global scale.
- Wide Reaching Syllabus: The syllabus of ACCA has numerous subjects inclusive of financial accounting, taxation, auditing, corporate law, and professionalism. This range of topics offered by ACCA makes it perfect for professionals whose desire is to work internationally in finance within various roles.
- Framework: ACCA comprises of 13 papers which is divided into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. These levels examine the candidates’ knowledge about accounting and its basic principles, the processes surrounding audit, as well as management accounting and other areas.
- Convenience: ACCA has provided a flexible examination timetable for candidates which enables them to take their lectures and even work or study full-time elsewhere.
Career Opportunities with ACCA
- As for the case with the ACCA professionals, they can take up several positions such as a financial manager or an auditor, a tax adviser, or a financial controller.
- This qualification is held in great esteem by international organizations and the so-called Big Four Accounting firms, namely: PwC, EY, Deloitte, and KPMG.
What is a CPA Course?
The Certified Public Accountant (CPA) credential is the ultimate measure of professional achievement in the field of accounting, especially in America. The CPA qualification is established by the AICPA and it is obligatory for everyone who intends to be a practicing public accountant in the US and those working for companies that are governed by US GAAP.
Key Features of CPA
- Curriculum with a US Centric Approach: The CPA qualification majorly emphasizes US Gap, US Taxation laws, and Auditing Standards in the US. It is more relevant to professionals who have dealings with Companies or clients from the US.
- Globally Accepted: Even though CPA is an American certification, it has its significance across the border most especially in the context of working for multinational companies, American working firms, and even those companies that operate under American standard regulations.
- Composition: CPA comprises of four parts which are more commonly referred to as the Uniform CPA Examination. These are:
- Financial Accounting and Reporting (FAR)
- Auditing and Attestation (AUD)
- Regulation (REG)
- Business Environment and Concepts (BEC)
- Period of Completion: The CPA exams must be completed in a period not exceeding 18 months, which makes it more demanding in terms of time than ACCA.
Career Opportunities with CPA
- Positions such as that of a public accountant, a tax advisor, a financial analyst, an auditor, which are primarily in US GAAP firms, are popular and readily available for CPAs.
- CPAs are determined in the pursuit of employment in US firms or even firms that have clients based in the US.
Key Differences Between: ACCA or CPA
When considering ACCA or CPA, the qualifications differ in focus, eligibility, recognition, and career outcomes. Below is a detailed comparison of both qualifications:
| Factor | ACCA | CPA |
| Primary Focus | Global accounting standards (IFRS) | US accounting standards (GAAP) and US federal taxation |
| Global Recognition | Over 180 countries | Primarily in the US, but respected globally |
| Number of Exams | 13 exams across three levels | 4 sections of the Uniform CPA Examination |
| Duration | 3-4 years (depending on the student’s pace) | Typically 18 months (all exams must be passed within this period) |
| Flexibility | High flexibility in scheduling exams | Time-sensitive (18-month limit to pass all exams) |
| Career Path | Auditor, tax consultant, financial manager | Public accountant, tax specialist, financial analyst |
| Eligibility | 10+2 (plus exemptions for degree holders) | Bachelor’s degree with specific accounting credits |
| Work Experience Requirement | 3 years of relevant experience | 1-2 years of relevant experience, depending on state |
| Exemptions | Available based on prior qualifications (CA, MBA, etc.) | No exemptions are typically granted |
Eligibility Criteria
- ACCA: For ACCA eligibility, With a 10+2 qualification, candidates stand a better chance of clearing the ACCA exams and the course as a whole. However, applicants with degrees such as B. Com, M. Com, MBA, etc., may get certain exemptions from the examinations, making it easier to earn the qualification. Besides, to be fully certified, it is also a requirement that such candidates undergo three years of relevant on-the-job training.
- CPA: With regard to CPA, the eligibility is a bit more rigid. A candidate must possess at least a baccalaureate degree, inclusive of a certain number of accounting-related credits (usually 120 to 150 semester hours). In the US, the eligibility criteria differ from one state to the other, but a good number of them insist on the candidates having a solid grounding in accounting and finance. Also, there are usually no exemptions in CPA exams naye examinations.
Exemptions
- ACCA: ACCA is granting an exemption to the students of most accountancy programs. Thus a person with a bachelor’s degree in commercial subjects or its equivalent can sit for relevant CA papers. CAs and MBAs may be granted exemption for some papers enabling them to clear their papers within a short period of time.
- CPA: In CPA there are no exemptions granted. All candidates notwithstanding their previous qualifications must take and pass all the four segments of the CPA examination.
Salary Expectations
- ACCA Salary: In India, entry-level ACCA professionals can earn between INR ₹6- ₹10 lakhs per annum. With experience, salaries can rise to INR ₹15- ₹30 lakhs per annum, especially in multinational corporations.
- CPA Salary: CPAs in the US typically earn higher salaries due to the certification’s prestige. Entry-level CPAs can expect to earn between INR ₹6 to ₹10 lakhs annually, with experienced CPAs earning upwards of INR ₹15 lakhs per annum, especially in senior roles like audit managers or finance directors.
Difficulty Level
- ACCA Difficulty: ACCA is often described as difficult as it encompasses many different aspects. In the ACCA syllabus 13 exams include many topics pertaining to finance, accounting, and tax, and hence take a continuous effort of about three to four years. On the other hand, ACCA allows students to sit for the qualifying examinations on their own time and also offers exemption for those with practical experience making it bearable for those already employed.
- CPA Difficulty: The hardest part of becoming a CPA is the CPA exam and its four components which entail a lot of technical elements. Moreover, the emphasis of the examinations is on the US framework of accounting, income taxation, and legal matters which poses a challenge to most without the US background. Nonetheless, unlike the CPA the exam can be completed in a shorter duration making it appropriate for people seeking a qualification that does not take too long.
Which is Better?
The answer to the dilemma of “ACCA or CPA which is superior” largely relies on your aspirations, regions and the branch you intend to work in.
- ACCA is the best alternative for those wanting international exposure and employment ideally in multinational corporations or global accounting firms. It is more accommodating and has a wider syllabus and is popular in a number of states including India.
- On the other hand, CPA is for people who want to work in America or want to deal with companies that adhere to US GAAP provisions. It is a well-respected qualification forpeople who focus on US tax, audit and public accounting.
If you are looking for an all – round qualification and open to many accounting jobs, maybe most appropriate will be ACCA. However, if the majority of your working aspirations lies in the US and you focus on becoming a public accountant, then you will take the path of the CPA.
Conclusion
It is unquestionable that both ACCA and CPA are eminent and well-cherished credentials in the profession of accounting and finance. Choosing one over the other depends on your professional goals, such as if you want to go international or stick to local, in this case, American, opportunities only. ACCA offers a wider and more flexible international degree for its trainees, as compared to CPA which is narrowly centered around the United States’ policies and regulations. At the end of the day, both credentials provide good employment opportunities and it is advisable to select one that is in line with your future expectations.