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ACCA vs. CPA: Key Differences and Similarities
ACCA and CPA are two certification courses for Students willing to take up Chartered Accountancy as a career. CPA is a course that is highly recognized in the USA, while ACCA is a globally regarded chartered accountancy course allowing you to practice CA in over 180 countries across the globe. These courses enhance the scope of career for students in accountancy abroad and allow them flexibility and diverse opportunities.
In this post, we discuss the two courses and their differences so students can understand them and make better career decisions.
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What is ACCA vs CPA?
ACCA or the Association of Chartered Certified Accountants is a body that accredits accountants globally. Founded in 1904 in the United Kingdom, the body has been aiding aspirants in accounting and finance to pursue a rewarding career. ACCA makes students eligible for one of the best accounting and finance careers. ACCA offers comprehensive knowledge of accounting to students including management accounting, financial accounting, taxation, auditing, and business ethics. ACCA professionals are well-recognized by employers globally. ACCA-certified professionals can work as Accountants, Tax Managers, Internal Auditors, Finance Managers, and Financial Consultants.
On the other hand, a Certified Public Accountant (CPA) is a designation conferred on licensed accounting professionals in the USA by the Board of Accountancy of the various American States. The American Institute of Certified Public Accountants (AICPA), USA holds the CPA exams. To qualify for the CPA certification, students must complete their bachelor's degree or equivalent. The CPA course can be completed within 8 – 12 months and the candidates must clear four exams to become CPA professionals. The exam format of CPA is 50% MCQs and 50% TBS. After completing CPA, candidates can work as Public Accountants, Forensic Accountants, Financial Analysts, and Internal Auditors, and so on.
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What are the Differences Between ACCA and CPA?
Both ACCA and CPA are prestigious accounting certifications that offer excellent career prospects. Below are the key differences between the two programs:
Differences | ACCA | CPA |
| Eligibility | Students can enroll for ACCA at different levels. They can apply for ACCA after 10+2 if they score 65% aggregate in Maths/Accounts and English and 50%in other subjects. There are options to apply for ACCA after the 10th standard and after graduation as well. | CPA eligibility requires a student to complete a bachelor's degree or equivalent course with accounting, business administration, and finance as the key subjects. |
| Pattern of Examination | ACCA Exams are primarily divided into two levels, Fundamentals and Professional. The Fundamentals level is further divided into two modules: Knowledge and Skills. The Professional is further divided into the Essential Module and Options Module. | The CPA curriculum has 4 examinations and each one lasts 4 hours. |
| Course Duration | ACCA can be completed within 2- 10 years depending on the level you started | CPA can be cleared in 8-12 months |
| Recognition | ACCA is globally accredited and recognized in more than 180 nations | CPA is widely recognized in the USA and some other countries. |
| Examination Dates | The Knowledge level examinations can be taken up online anytime throughout the year, whereas the ‘Skill’ and ‘Professional’ level online exams are held every year in March, June, September, and December | CPA examinations can be taken up on demand in January, February, April, May, July, August, October, and November. |
| International Standard | ACCA relies on IFRS or International Financial Reporting Standards | CPA focuses on GAAP or Generally Accepted Accounting Principles |
| Organizing Body | The Association of Chartered Certified Accountants is a global body based in the UK | American Institute of Certified Public Accountants (AICPA), USA |
| Job Profiles | Accountants, Tax Managers, Internal Auditors, Finance Managers, and Financial Consultants. | Public Accountants, Forensic Accountants, Financial Analysts, and Internal Auditors |
| ACCA vs CPA Salary | Rs 20 lakh - Rs 50 lakh | Rs 6 lakh - Rs 15 lakh |
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ACCA vs CPA Job Opportunities and Salaries
Job Roles that ACCA Certified Professionals are Eligible for:
1. Financial Accountant
Salary: Rs 1.0 lakh to Rs 12.0 lakh
2. Management Accountant
Salary: Rs 3 lakh - Rs 24.7 lakh per annum
3. Corporate Treasurer
Salary: Rs 2.2 lakh – Rs 87.5 lakh per annum
4. Financial Controller
Salary: Rs 6 lakh - Rs 60 lakh per annum
5. Finance Manager
Salary: Rs 3.5 - Rs 32.4 lakh per annum
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Job Roles that CPA Certified Professionals are Eligible for:
1. Corporate Controller
Salary: Rs 4.5 lakh - Rs 98.8 lakh per annum
2. Public Accounting
Salary: Rs 1.1 lakh - Rs 3.5 lakh per annum
3. Tax Examiner
Salary: Rs 1.0 lakh to 13.3 lakh per annum
4. Business System Analyst
Salary: Rs 4 lakh - Rs 22. 5 lakh per annum
5. Forensic Services
Salary: Rs 3 lakh – Rs 13 lakh per annum
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Conclusion
When comparing ACCA vs CPA, it is difficult to draw a clear winner between the two. Both the courses are well-recognized and prestigious and serve the purpose of accounting aspirants, especially if they want to pursue an international career. ACCA is globally recognized, while CPA is more relevant in the US market.
If you are willing to pursue a career in ACCA or CPA, you can enroll in a course with Amity Online University. Amity Online offers several programs for online students including ACCA courses. To learn more about them, visit Amity Online today.
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frequently asked questions
What are the main differences between ACCA and CPA qualifications?
+Association of Chartered Certified Accountants (ACCA) courses are recognized globally and allow you the option to work anywhere across the globe as ACCA-certified chartered accountants can practice accountancy in 180 different countries. On the other hand, a Certified Public Accountant (CPA) certified chartered accountant can work in limited countries.
How do the entry requirements for ACCA and CPA compare?
+To qualify for the CPA certification, students must have completed their bachelor's degree. The CPA course can be completed within 8 months to a year which includes preparation time and the time to clear all four sections of the CPA exam. ACCA, on the other hand, does not require the students to be graduates to enroll in the qualification.
What are the exam structures for ACCA and CPA?
+ACCA Exams are primarily divided into two levels, Fundamentals and Professional. The Fundamentals level is further divided into two modules: Knowledge and Skills. The Professional is further divided into the Essential Module and Options Module. Certified Public Accountant (CPA) Course can be cleared by passing 4 Exams in Just 12 Months to become a CPA expert. The exam format of CPA is 50% MCQs and 50% TBS.
How does the global recognition of ACCA and CPA differ?
+ACCA-certified chartered accountants can practice accountancy in 180 different countries across the globe as they are recognized by all those countries. On the other hand, a Certified Public Accountant (CPA) certified chartered accountant can work in the US and a few other countries where the certification is recognized.
What are the career opportunities for ACCA vs. CPA?
+Both ACCA and CPA courses are prestigious accounting certifications that open doors to excellent career opportunities for freshers and professionals. ACCA-certified professionals can work as Accountants, Tax Managers, Internal Auditors, Finance Managers, and Financial Consultants. On the other hand, CPA candidates can work as Public Accountants, Forensic Accountants, Financial Analysts, and Internal Auditors, among others.
How do ACCA and CPA certifications impact earning potential?
+Both CPA and ACCA-certified professionals can earn competitive salaries in multinational companies across sectors. ACCA-certified individuals can avail the opportunity to work in companies across the globe as ACCA is recognized in over 180 countries, while CPA professionals can focus their area of work mainly in the United States.
Which qualification is more suitable for international accounting careers?
+ACCA, CPA, CMA, and IFRS are some of the incredible qualifications for international accounting careers. Since ACCA is recognized in over 180+ countries globally, it has an edge over many others.