Globally recognised accounting designations have become quite popular amongst Indian students and professionals. Due to the growing need for globally qualified accountants amid the expansion of multinational corporations, there has been an increase in job openings in this field. Therefore, there is no dearth of employment prospects in professions like ACCA and CPA.
But deciding whether one should pursue ACCA vs CPA in India can be difficult for many aspirants. The ACCA vs CPA India decision depends on various factors, including eligibility criteria, level of difficulty, duration, fee structure, salary and job prospects.
This article offers detailed information about ACCA vs CPA in India.
What is ACCA?
ACCA means the Association of Chartered Certified Accountants. ACCA is an international accounting certification that is valid in over 180 nations and originated in the United Kingdom. ACCA is about accounting, auditing, taxation, financial management, and business strategy.
For Indian students, ACCA is very popular since it can be taken up right after Class 12. ACCA is one of the easiest ways to gain an international accounting certification. Commerce students, B.Com graduates, and people aspiring for CA can go for ACCA.
There are three levels in ACCA certification:
- Applied Knowledge
- Applied Skills
- Strategic Professional
A total of 13 examinations are there, plus ethics and practice requirements. Students can sit for the examinations based on their choice of timing.
ACCA is good for students interested in career paths such as financial accounting, auditing, consultancy, and international finance roles.
What is CPA?
CPA stands for Certified Public Accountant. This is an American accounting designation that carries much weight in multinationals and firms that deal with American clients. CPA designations have expertise in US GAAP, auditing, taxation, and financial reporting.
Unlike ACCA, the CPA designation cannot be pursued immediately after class XII. The candidate will need to clear graduation and other requirements before pursuing the CPA designation. For Indians, CPA is pursued after completing their B.Com, M.Com, or CA.
There are four subjects in the CPA examination:
- AUD – Auditing and Attestation
- FAR – Financial Accounting and Reporting
- REG – Regulation
- BAR – Business Analysis and Reporting
CPA is popular for its shorter duration, with many candidates clearing it in 12-18 months. But CPA is a tough examination owing to its rigorous syllabus and examination pattern.
CPA is most suitable for candidates who wish to pursue American accounting careers, auditing, and well-paying finance jobs.
A comparison of the differences between ACCA and CPA will help students make the right choice.
One of the major distinctions is duration. ACCA generally takes 2-3 years, whereas CPA takes around 12-18 months.
The requirement criteria also differ. ACCA may be pursued after Class 12, whereas CPA requires graduates and credits.
Another significant difference is the pattern of tests. ACCA has 13 examinations divided among various levels, whereas CPA has 4 examinations, but the content is more detailed.
Professional direction also differs between the two. ACCA helps in international jobs in the fields of accounting and finance. In contrast, CPA helps with US accounting jobs.
When comparing the cost, it is clear that CPA will generally be more expensive owing to test costs, evaluation charges, and licensing fees.
While both are valid qualifications, their professional prospects depend upon the objective of employment.
ACCA vs CPA India: Course Duration and Difficulty
ACCA takes longer but is more flexible. Candidates can take each exam at their own pace while also studying at university or working.
CPA takes less time but requires more concentration from candidates. They need to focus well on each test. Four tests have to be completed within a set period of time.
ACCA is relatively easy compared to CPA. CPA is relatively difficult because of its technicalities and structure.
Candidates who like studying slowly prefer ACCA. Professionals who want to complete their studies quickly opt for CPA.
ACCA vs CPA India: Career Opportunities
There are a variety of career options in ACCA. They can be employed in accounting firms, consultancy firms, banks, and multinationals.
Job titles common to ACCA include the following:
- Financial Analyst
- Internal Auditor
- Tax Consultant
- Finance Executive
- Risk Analyst
- Accounting Manager
CPA holders typically have careers in US accounting positions or international financial departments. There is a need for CPA in firms dealing with US clients.
Job titles common to CPA include:
- US Accountant
- Audit Associate
- Financial Reporting Analyst
- Tax Specialist
- Compliance Analyst
- Audit Manager
ACCA vs CPA Salary in India
Salary is one of the essential considerations while comparing ACCA vs CPA India.
In India, new ACCA graduates make a salary range of ₹6 lakh to ₹8 lakh per annum. The annual salary ranges from ₹10 lakh to ₹18 lakh in the case of experienced ACCA graduates. Senior ACCA professionals receive annual salaries of more than ₹20 lakh.
The initial salary of CPA professionals is relatively higher compared to that of ACCA graduates. The annual salary of CPAs is ₹8 lakh to ₹12 lakh in the case of new graduates. The annual salary ranges from ₹15 lakh to ₹25 lakh in the case of experienced CPA professionals.
ACCA vs CPA India: Which is Easier?
ACCA is comparatively easy due to its flexible nature. Students are able to sit for examinations one at a time.
The CPA examination is comparatively difficult owing to its few yet technical nature.
Those who start at an earlier age may find ACCA easy, while those who have studied accounting in depth may find CPA easy.
Difficulty is relative depending on the mode of study adopted.
ACCA vs CPA India: Which is Better for Career Growth?
ACCA is more appropriate for candidates looking for global career options in many countries. It is also more ideal for candidates seeking flexible studies.
The CPA is better suited for individuals looking for US accounting job positions and rapid career advancement. It also provides good salary benefits.
ACCA is more appropriate for global careers that last long. The CPA is appropriate for individuals seeking rapid specialisation in accounting.
Both qualifications offer excellent career prospects when obtained.
Choosing Between ACCA and CPA in India
When selecting between the two, consider what you are looking for.
Select the ACCA if:
- You seek global career options
- You have just graduated from Class 12
- You desire flexible examinations
- You are interested in general finance positions
Select the CPA if:
- You seek US accounting positions
- You require rapid completion
- You already have a degree
- You are interested in better salary prospects
Conclusion
The choice between ACCA and CPA India will depend on eligibility, future career plans, and time. ACCA is better if one wants international recognition, more flexible studies, and career diversity. The advantage of CPA includes fast completion of the program, higher salaries, and demand among US accounting jobs.
Prospective students should make their choice depending on how early they started their studies. Graduates should choose a certification according to their career plans. Both programs are reputable and widely recognised around the world.
Frequently Asked Questions (FAQs)
Q: Which is better between ACCA and CPA in India?
A. CPA is good for US jobs and higher pay. ACCA is good for international jobs.
Q. Is CPA difficult compared to ACCA?
A. Yes, since it is more difficult through exams.
Q. Am I eligible for CPA after graduating from B. Com in India?
A. Yes, B. Com graduates can qualify for CPA.
Q. Between ACCA and CPA, which pays more?
A. A CPA earns more money in India.
Q. Can an ACCA holder practice in the USA?
A. Yes, however, CPA will be preferred.
Q. Is ACCA or CPA faster?
A. A CPA qualification is faster and takes around 12-18 months.
