The ACCA and CPA qualifications are equally well-recognized by employers working all around the world. Both of the courses have the potential of promising career opportunities, but they differ in various aspects which include focus areas, exam structures, global recognition, and much more. To talk about the professional qualifications concerning accounting and finance, two global courses are dominant. Both ACCA and CPA offer bright career prospects but differ in different aspects, including focus areas, recognition, and exam structures. This will help understand the differences, and thus informed decisions can be made on which best suits one’s career goals.
What is ACCA?
The ACCA full form is the Association of Chartered Certified Accountants. It is a very important qualification for individuals seeking to work in the finance and accounting fields. It has been there since 1904 and is highly valued and recognized globally, in more than 180 countries. ACCA will equip people with the skills to learn about jobs such as accounting, auditing, taxes, and managing money. What’s cool about ACCA is that it is flexible. It can fit in with your life, and there is a big focus on real-life experience. This helps prepare you for the fast-changing world of global business. Whether just starting your career or looking for something new, ACCA will help you grow both personally and professionally in the exciting world of money and numbers.
CPA Meaning
The Certified Public Accountant (CPA) is a professional certification offered by the American Institute of Certified Public Accountants (AICPA) to individuals demonstrating proficiency in accounting and auditing. It was established in 1896 and is a highly regarded professional certification in the United States and recognized internationally for its rigorous exam requirements and high ethical standards. CPAs find career opportunities in such diverse sectors as public accounting, corporate finance, government, and consulting. Through their special preparation in the rules of U.S. GAAP and relevant regulation, this accreditation certifies CPAs in aspects of financial reporting, taxation, auditing, and other areas. Becoming a CPA is also ideal for the potential to offer excellent career choices. These include jobs with public accounting, corporate finance, or government sectors.
Difference Between ACCA and CPA
When comparing the Association of Chartered Certified Accountants (ACCA) and the Certified Public Accountant (CPA) qualifications, several key differences emerge. ACCA is a globally recognized qualification, while CPA is primarily focused on the United States. ACCA covers a broad range of accounting topics, providing a comprehensive understanding of international accounting standards and practices. In contrast, CPA focuses specifically on U.S. Generally Accepted Accounting Principles (GAAP) and regulatory requirements, making it ideal for professionals seeking to specialize in U.S. accounting standards.
| Criteria | ACCA | CPA |
| Course Structure | Knowledge level (3 papers)Skill Level (6 papers)Professional Level (4 papers) | The exam is taken up after graduation in addition to 1 year of post-graduation of 120 credit hours of education |
| Duration | 6-24 months | 1-1.5 Years |
| Eligibility | 10 +2 Examination with 65% aggregate in Maths/Accounts and English and a 50% in other subjects | The exam is taken up after graduation in addition to 1 year of post-graduation of 120 credit hours of education |
| Average Salary | 8-9 lakhs (Per Annum) | 7-8 lakhs (Per Annum) |
ACCA vs CPA Which is Easier?
Although ACCA and CPA belong to the same field, which is accounting and finance, there is quite a difference between them. On one hand, ACCA is a globally recognized course attracting employers from over 180 countries, and CPA is mainly recognized in the US. As CPA focuses more on the US GAAP Principles and Standards. It becomes extremely difficult for students to focus if they are not at all familiar with the US standards. ACCA is quite popular in India as well, but as CPA is focused in the US, its aspirants are restricted.
ACCA vs CPA Salary
The ACCA salary in India varies widely based on their job and experience, from INR 6.4 lakh to INR 16.7 lakh per annum. On the other hand, Certified Public Accountants in India also see a wide salary range, which ranges from INR 5.9 lakh per annum for those with less than a year of experience to INR 24 lakh per annum for those possessing 10 to 19 years of experience. These figures present the significant pay potential of professionals in such distinguished accounting positions as a result of their knowledge and high demand in finance.
ACCA and CPA Eligibility
ACCA qualifications are available to anyone holding a high school diploma up to individuals holding a bachelor’s or master’s degree. The entry route also includes experienced professionals, for example, CAs and CMAs, who have over five years of experience. On the other hand, eligibility requirements for CPAs vary from state to state in the United States but generally include a bachelor’s degree and a certain number of credit hours. To be fully licensed as a CPA, candidates must complete 150 credit hours, gain two years of work experience, and pass the four Es: Examinations, Education, Experience, and Ethics examinations.
CPA USA vs ACCA Exam Pattern
The ACCA exams consist of 3 levels, Applied Knowledge, Applied Skills, and Strategic Professional, with 13 papers. There are 3 papers at the Applied Knowledge level, 6 at the Applied Skills level, and 2 mandatory and 2 electives at the Strategic Professional level. All the exams are computer-based.
In contrast, the 4 examinations offered in the CPA curriculum are as follows:
- Business Environment and Concepts (BEC)
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulations (REG).
Every exam lasts for 4 hours. The most prominent sections emphasize US Taxation and US GAAP. All exams are delivered on a computer.
ACCA and CPA Course Duration
The duration of the ACCA course varies according to the previous qualification. Undergraduates and others with lower academic qualifications take about 2.5 to 3 years to clear 13 ACCA exams. Commerce graduates can complete the course in 2 to 2.5 years by clearing 9 exams. Students having a commerce degree along with CA Inter may complete the course in 1.5 to 2 years with 7 exams.
Chartered Accountants and Certified Management Accountants who have more than five years of experience can finish the ACCA in 1 to 1.5 years if they pass only 4 exams. On the other hand, candidates for CPA take 12 to 18 months to finish all CPA exams.
ACCA vs CPA Difficulty Level
Both ACCA and CPA are challenging certifications and require one to put a lot of hard work, time, and practice behind them in order to get past. Difficulty will differ from exam type, the width of the syllabus, and even personal skillset for that matter. The ACCA examinations are taken across the world with an approximate 55% average pass rate of ACCA indicating a balanced rate of passing due to effort. In contrast, the pass rate of CPA exams is 40-50%, and it has been customized for U.S. accounting standards, thus proving a little tougher. Again, the result is only possible for a committed candidate who is capable of mastering the course material in both.
CPA vs ACCA: Job Profiles
- ACCA: Qualifies individuals for roles like Financial Accountant, Management Accountant, Tax Specialist, Financial Manager, and more.
- CPA: Prepares candidates for roles such as Public Accountant, Forensic Accountant, Financial Analyst, and Internal Auditor.
ACCA vs CPA US FAQs
What are the main differences between ACCA and CPA?
The key difference between ACCA and CPA is that ACCA is globally recognized in over 180 different countries, whereas CPA is designed to focus mainly on the United States. Also, ACCA has a broader scope where various areas of accounting are focused, and CPA focuses only on the U.S. GAAP and other regulatory requirements.
Who earns more ACCA or CPA in India?
In India, ACCA professionals earn between ₹6.4 LPA and ₹16.7 LPA based on experience. CPA professionals earn ₹5.9 LPA to ₹24 LPA, depending on their expertise level.
Which certification is more suitable for a career in auditing?
As far as career is concerned, it is said that both ACCA and CPA-qualified students have the potential to pursue very promising careers. But somehow CPA is given more preference as it focuses on U.S. regulations, and so building a career in the U.S. becomes very easy.
Are there any prerequisites for pursuing an ACCA or CPA?
The requirements for pursuing a CPA are more as compared to pursuing ACCA. For taking up ACCA, students need to clear certain exams, and for CPA a bachelor’s degree with clearance of the Uniform CPA Examination is needed.
Which certification is more widely recognized internationally?
ACCA is recognized in over 180 countries worldwide, making it highly valuable for professionals seeking international career opportunities. CPA is primarily recognized in the United States but may also hold value in some international markets.
