CPA vs. MBA —Which is Better?
TABLE OF CONTENTS
- The CPA and the MBA
Certified Public Accountant
Master of Business Administration - Top Benefits of Being a Certified Public Accountant
- Top Benefits of Being a Master of Business Administration
- Certified Public Accountant Certification vs. Master of Business Administration Degree
Education
Job Opportunities
Skills
Salary - Conclusion
- FAQs
THE CPA AND THE MBA
Certified Public Accountant
A US CPA is a Certified Public Accountant administered by the American Institute of Certified Public Accountants (AICPA). It’s the American version of the Chartered Accountant in India. Moreover, the CPA course has gained gigantic popularity and has a wide scope in the United States and other countries.
A certified public accountant is a credential you obtain after satisfying the requirements, such as education, experience, and testing. Getting the credential solely depends on the state you’re in or where you plan to be licensed.
Master of Business Administration
The MBA or Master of Business Administration is a post-graduate degree for those who want to kickstart their career in business management. There are several specializations offered, including an MBA in Finance to apply managerial skills in the field of finance. Moreover, an MBA in finance is perfect for those with a vision for a successful career in the field.
You can pursue an MBA course after you complete your Bachelor’s Degree. Some universities offer a blended program where you can get a Bachelor’s and Master’s degree at the same time. A Master of Business Administration covers an extensive range of business disciplines, including management, marketing, operations, and accounting. A degree in MBA teaches effective management, effective communication, as well as analytical skills that equip business leaders in the future with the tools needed to lead teams.
For college students planning their career track or even seasoned professionals seeking to elevate their positions, a CPA or an MBA may be a great option. Both degrees are highly-recognized and could boost job prospects and of course the earning potential.
TOP BENEFITS OF BEING A CERTIFIED PUBLIC ACCOUNTANT
The CPA exam is hard because it challenges accountants to have the knowledge, skills, and experience to offer value to the clientele. Nonetheless being a CPA is worth it. The CPA license opens so many doors of opportunities that could lead to success and more profitability.
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Elites in the World of Accounting
Certified Public Accountants are the elites of the accounting landscape. It’s a known fact that CPAs are among the most skilled professionals in the world. The CPA license or certification demonstrates their remarkable accounting competence. Moreover, CPAs are far more knowledgeable and experienced in financial matters compared to an average accountant. Thus, CPAs have earned a high level of respect in the business field.
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CPAs Generate More Money
There are many benefits to being a CPA. Nonetheless, one of the most noteworthy is higher income. Applicants with a CPA license can expect a salary hike of ten to fifteen percent compared to unlicensed peers. Of course, everyone wants higher pay, and the CPA certification can certainly help land a job with better pay.
The billing rate of a CPA can skyrocket in the public accounting field. The increased company profits will boost the salary a great deal. Moreover, the certification can help international accountants find work not only in the United States but also in other countries. -
Greater Job Satisfaction
One of the main reasons why people want to become a certified public accountant is because they enjoy the job. Often, CPAs work in different fields and are skilled in several disciplines. Moreover, they enjoy greater variation when it comes to their schedule.
CPAs can focus on a specific area of accounting, like management consulting, auditing, and so on. Certified public accountants, overall tend to have a better work time than accountants without a certification. Moreover, the license provides an opportunity to pursue a certain passion, since there are numerous specializations available. -
Always In High Demand
There are many job opportunities for CPAs. Becoming a CPA means getting work and advancing one’s career considerably easier and simpler. CPAs enjoy high demand for top financial business roles, government sectors, and NGOs.
Moreover, research done by AICPA discovered that 75 percent of certified public accountants currently in practice plan to retire within the next fifteen years. This could only mean that new accountants will have a terrific opportunity to enter the lucrative market. -
Continuous Learning
For an accountant in the modern world, learning never ceases. Moreover, with the escalating relevance of technology, artificial intelligence, and the seemingly endless tax code revisions, CPAs never stop learning. The laws and regulations that govern the accounting and finance world continue to evolve. Since certified public accountants are at the frontline of their field, they’re adept in all recent developments in the best practices and the law.
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TOP BENEFITS OF BEING A MASTER OF BUSINESS ADMINISTRATION
An MBA degree exhibits one’s commitment to learning, improving, and applying skills that can help an organization succeed. Moreover, a professional with a Master of Business Administration degree feels greater confidence in marketability and the abundance of information they can bring to different endeavors.
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Better Understanding of the Global Market
Earning a Master of Business Administration degree puts you in close contact with other students across the globe who have various perspectives and work experiences on the world economy. Aside from learning from professors, MBA students could also widen their knowledge of other industries across the United States and abroad.
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Bolster the Professional Network
Having an MBA degree makes you part of the global network of almost 100,000 alumni, which gives you access to intelligent and respected professionals. More than being a part of a wider community, MBAs also have the opportunity to establish relationships with other professionals not just in the classroom but outside.
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Boosts the Communication Skills
A fundamental skill for MBA professionals is effective communication. Although communication may be deemed as a ‘soft skill’ compared to ‘hard skills’ in the field, it’s nevertheless equally valuable. A master of business administration certification could help hone both verbal and communication skills, leading to successfully conveying concepts to people at different levels of an organization. This ensures that everyone can work together towards a common goal.
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Higher Quality Time Management
Earning an MBA degree could also mean performing extracurriculars along a challenging course load. Moreover, there are also other personal and professional pursuits to think about and do something about. Getting a master of business administration degree can help manage time more efficiently, which is an in-demand skill among employers as well as a valuable life skill.
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Better Job Opportunities
In today’s highly competitive market, an advanced degree is a great help in setting an applicant apart from the rest. An MBA can be a great asset in any organization across various industries. Typically, employers are looking to hire or promote a candidate with a master of business administration degree because they possess marketing and finance skills that others within the company may lack or may not even have.
CERTIFIED PUBLIC ACCOUNTANT CERTIFICATION VS. MASTER OF BUSINESS ADMINISTRATION DEGREE
The following are some key differences between a CPA and an MBA.
Education
The level of education is one of the clearest differences between a CPA and an MBA. To become a CPA, it’s typically a requirement that accountants hold a bachelor’s degree. State jurisdictions may vary, but most areas expect CPA aspirants to have completed at least 150 hours of college credits. Some candidates pursue master’s degrees as well, but this is not common.
The majority of MBA programs require candidates to have a bachelor’s degree before applying for an MBA. This is because an MBA is a kind of master’s degree, thus having the foundational bachelor’s degree knowledge helps candidates prepare for advanced learning. It’s common for those seeking an MBA degree to have a bachelor’s degree in business, marketing, or accounting. All of these areas can relate to the work they might perform during the MBA program.
Job Opportunities
A certified public accountant could differ from a master of business administration in the kinds of jobs they pursue. While the most common job for a CPA is accountant, they can also pursue other high-level and high-paying jobs in accounting and finance. Typically, these jobs involve providing financial advice to clients. Some popular alternative jobs for CPAs include:
- Auditor
- Forensic accountant
- Tax adviser
- Accounting Specialist
- Financial adviser
For those with an MBA degree, there are numerous job titles in various industry verticals, including business, marketing, and accounting. This is because the degree can provide students the important skills and advanced knowledge in various areas of business. Most jobs involve some leadership level. Some common jobs for MBA graduates include:
- Finance Manager
- Operations Director
- Chief Executive Officer (CEO)
- Regional Director
- Chief Financial Officer (CFO)
Skills
The skills that each credential provides also differ. The following are some of the most common skills that CPA professionals have.
- Financial Documentation
- Auditing
- Tax Preparation
- Critical Thinking
- Attention to Detail
On the other hand, these are some of the popular skills for MBA graduates:
- Business Administration Proficiency
- Interpersonal Skills
- Leadership Skills
- Communication
- Ability to work with various cultures and identities
Salary
Salaries also differ between a CPA and an MBA. A lot of MBA jobs pay higher salary because it’s a highly advanced credential. Nonetheless, it’s important to keep in mind that factors like employer and location could influence the salary range.
The average salary for a CPA is currently $78,899 per annum. Furthermore, they receive employee benefits aside from their salary, including paid leaves, professional development, the ability to make a flexible work schedule.
Some of the average salaries for various MBA graduate jobs include:
- Director of Operations – $84,396 per annum
- Finance Manager – $89,259 per annum
- Regional Director – $89,955 per annum
- CEO – $104, 202 per annum
- CFO – $122, 662 per annum
CONCLUSION
Which is better, a CPA or an MBA? Deciding which option is better all boils down to personal preference. For those who are leaning towards finance or accounting, their best bet may be to become a certified public accountant.
On the other hand, for those who are considering a leadership or executive position, a master of business administration is the best bet. However, there’s a strategy that should be taken into account. You can expand your courses to complete an MBA to include ones that also qualify you to sit for the CPA exam. Whatever the choice may be, getting an MBA or becoming a CPA are terrific ways to elevate your position, improve your career outlook, and boost your earning potential.
FAQs
Q. Who is paid more, CPA or MBA?
Ans. There’s no exact answer because it depends on several factors. Nevertheless, the average starting salary of a CPA is $78,899 per year while the average starting rate for an MBA is $84,396 per year.
Q. Is a CPA superior to an MBA?
Ans. No. You need not take up a master’s degree to become a CPA. A CPA is a designation earned by passing a licensure exam. A master’s is an academic degree. However, most MBA programs offer courses that can help you sit for the CPA exam.
Q. Which is harder, CPA or MBA?
Ans. CPA is harder because it requires passing an exam that covers a huge range of accounting and finance topics. An MBA may be harder, depending on the program. Nevertheless, it typically entails completing coursework in areas of management, financial analysis, and marketing. It takes around 1,000 hours to become a certified public accountant while becoming a master of business administration usually takes a couple of years to complete.
Q. Is it possible to do a CPA after my MBA in finance?
Ans. Yes. All you need is to qualify for the 120-hour credit rule.
Q. What are the Costs of obtaining a CPA versus an MBA?
Ans. The cost of the CPA licensure exam includes study materials, exam fees, and review courses, which sums up to several thousand dollars. An MBA could cost tens of thousands to more than a hundred dollars. There are also books and living expenses for full-time MBA programs. So, an MBA could cost more.
Q. Can I pursue a CPA and an MBA as well?
Ans. Pursuing both is possible and very beneficial. Together, they boost your career opportunities, particularly for executive-level roles in accounting or finance.
Yes, pursuing both is possible and beneficial. An MBA has wide business skills while a CPA provides specialized expertise in accounting. Having a CPA license and an MBA degree could boost your career prospects a great deal, particularly for executive roles in accounting and finance.