Choosing a career in accounting is a big decision. Choosing ACCA vs. CPA depends on your career goals, location, and interests. ACCA (Association of Chartered Certified Accountants) and CPA (Certified Public Accountant) are prestigious qualifications in the accounting world. ACCA offers global recognition, while CPA is more U.S.-focused but highly respected.
ACCA is probably the way to go if you dream of working in multinational companies, travelling for work, or getting involved in international finance. It opens up opportunities all around the world and gives you a chance to work in different countries and industries. On the other hand, if you see your future rooted in the United States, especially in public accounting firms or high-level corporate roles, CPA is the credential you will want to pursue. Well, it’s not just about passing an examination; it’s more like a ticket to senior positions in the U.S. accounting landscape.
What is ACCA?
The Association of Chartered Certified Accountants is a global body for professional accountants. It was established in 1904 and has members in more than 180 countries. ACCA focuses on international accounting standards, making it ideal for those who want a global career. The ACCA qualification covers various topics, including financial management, taxation, auditing, and ethics. To become a member of the ACCA, one has to pass 13 exams, undergo three years of relevant work experience, and an ethics module.
You have the freedom of choosing a variety of exams per year and thus study at your own pace to acquire this prestigious ACCA qualification. You could be employed in various sectors ranging from public practices, corporate finances, consultancy work, or any government jobs and the fact that it has international recognition, among other qualities.
CPA Meaning
CPA stands for Certified Public Accountant. It is a license given to accountants in the United States who pass the CPA exam and meet other state-specific requirements. The CPA credential is highly respected and often required for senior positions in accounting and finance. CPAs are experts in U.S. GAAP (Generally Accepted Accounting Principles), auditing, taxation, and business law.
To become a CPA, you must complete education requirements – usually a bachelor’s degree with specific accounting credits. In addition, you will have to pass the four-part CPA exam and meet any work experience requirements prescribed by the state Board of Accountancy. Some states also require an ethics exam. CPAs work in public accounting firms, corporate finance, government, and non-profits, performing audits, preparing tax returns, and offering consulting services.
Difference Between ACCA and CPA
Knowing the difference between ACCA and CPA can be critical when choosing the right career for yourself. These two qualifications present excellent opportunities with a difference in focus, recognition, and requirement.
| Feature | ACCA | CPA |
| Origin | United Kingdom | United States |
| Global Recognition | Yes, recognized in over 180 countries | Mostly recognized in the U.S., some global reach |
| Focus | International Accounting Standards (IFRS) | U.S. accounting standards (GAAP) |
| Exam Structure | 13 exams | 4 exams |
| Work Experience | 3 years of relevant experience | Varies by state, usually 1-2 years |
| Flexibility | High, multiple exam sessions per year | Fixed exam windows |
| Cost | Generally lower | Generally higher |
| Career Opportunities | Global companies, multinational firms | U.S. firms, public accounting, corporate roles |
| Regulatory Authority | ACCA Global | State Boards of Accountancy |
ACCA vs. CPA: Which has better career advancement opportunities?
Choosing ACCA or CPA may be more important, depending on where you would like to work and your long-term career plans. If you want to work abroad or in countries using IFRS (International Financial Reporting Standards), ACCA is the preferred choice. You can work in more than 180 countries as ACCA enjoys global recognition, which means greater flexibility and varied job opportunities.
However, if you want to practice in the United States or with companies operating on U.S. GAAP, then you must pursue the CPA. This is because it is highly sought after in many senior accounting roles in the U.S.. It is much respected in the U.S. job market compared to a holder of ACCA. Many times, a CPAs earnings power is stronger than that of a member holding the ACCA qualification.
ACCA vs CPA: Which is Easier?
When comparing ACCA and CPA, many students wonder which qualification is easier. The answer depends on your background, study habits, and familiarity with accounting standards.
ACCA offers 13 exams. However, it can be done within a longer time frame, usually across several years. This enables working full-time people or people committed to going at their own pace. Topics such as financial accounting, ethics, and management accounting are covered. However, because of the enormous amount of material, this has been simplified in that students sit for the exams individually.
CPA has four exams only, but they are challenging. The CPA exam concerns U.S. accounting standards, tax laws, and business regulations. The CPA exam would be much easier if you have experience with U.S. GAAP and tax rules in America. But again, having limited windows to the exams and a strict time to complete them may create stress during the process.
ACCA vs CPA Salary
Salary potential is one factor that makes a difference between ACCA and CPA. While both qualifications are competitive in salary, the earning potential varies with location, job role, and industry.
CPAs in the United States can earn higher salaries than members of ACCA. The U.S. places a high value on CPA, and many accounting positions require it to be held by seniors. According to recent surveys, people with a CPA can earn as much as ₹5,800,000 to ₹10,000,000, depending on experience and position. Senior CPAs or managerial positions would earn more; some could go beyond ₹12,500,000 annually.
Members of ACCA also earn competitive salaries, especially in countries that recognise the qualification. In the UK, the average salary of an ACCA professional can be anywhere between ₹4,000,000 to ₹7,000,000 annually, while higher for more senior positions. In other countries, the salaries depend on the local job market and demand for ACCA-qualified professionals.
ACCA and CPA Eligibility
Eligibility requirements for ACCA and CPA vary, and it is important to know them before choosing your career path.
One must have completed secondary education, equivalent to going through high school. Most students begin ACCA right after school, though having a bachelor’s degree is beneficial, as you would thus avoid some of the exams. ACCA is very flexible, and it can be joined regardless of educational background. To be a full member, One must pass 13 exam papers, achieve three years of relevant work experience, and complete an ethics module.
The requirement to become a CPA is stricter. You must hold at least a bachelor’s degree with specific numbers of accounting and business credits. Most states require 150 credit hours, exceeding a typical bachelor’s degree. This means you must do additional coursework or acquire a master’s degree. In addition, you must pass the four-part CPA exam and meet the various requirements of work experience. Some states require an ethics exam, so not all are the same.
ACCA vs CPA Difficulty Level
A significant factor for choosing between the two is the difficulty level of the ACCA and CPA exams. Although challenging, the two qualifications are difficult in different ways.
ACCA has 13 exams that cover a wide range of topics. The exams test your knowledge in financial management, taxation, auditing, and ethics. Although the exams are challenging, the flexibility to take them at your own pace makes it manageable. ACCA’s broad curriculum means you must master many subjects, but you can focus on one exam at a time.
The CPA exam comprises four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). These are very hard and demand deeper knowledge of the U.S. accounting standards and regulations. Strict time limits with limited testing windows make the examination even more intensive. Yet, it seems more straightforward with just four exams than ACCA’s 13 exams.
ACCA vs CPA Job Profile
Job profiles of ACCA and CPA professionals vary based on the focus and recognition of the qualification.
Members of ACCA work in multinational companies, financial institutions, consulting firms, and government agencies. Their roles include financial analyst, auditor, tax consultant, and management accountant. Due to global recognition, professionals can work in various countries and industries. The focus on international accounting standards makes members of ACCA valuable for companies that operate across borders.
CPAs work in public accounting firms, corporate finance departments, government, and non-profits. They conduct audits, prepare tax returns, and provide consulting services. CPAs often hold senior positions such as financial controller, CFO, and audit manager. In the U.S., the CPA credential is required for many roles, especially in public accounting and auditing.