Determine the Difference Between CPA and ACCA

TABLE OF CONTENTS

1. INTRODUCTION
2. OVERVIEW OF ACCA AND CPA
3. What is ACCA?
4. What is CPA?
5. ACCA vs. CPA
6. Global or US Focus
7. Qualification Comparisons
8. Exams
9. ACCA Career Opportunities
10. Should You Become a CPA or an ACCA Certified?
11. Key Advantages
12. CONCLUSION
13. FAQs

INTRODUCTION

The field of accounting can be traced back thousands of years in Mesopotamia and is said to have developed alongside counting, writing, and money. It’s a field with endless possibilities and job opportunities. Moreover, it’s the backbone of organizations big and small. Accounting is an old course yet it continues to be relevant at present times. It has evolved to keep up with the changing times and the constantly changing requirements in the business sector all over the world.
There is great demand for accounting professionals across different industry verticals. Nevertheless, one should be exceptionally skilled to get a job in the industry. In the field of accounting, ACCA and CPA are the two highest certifications. Determining the differences between the two helps determine which career path to choose.

Overview of ACCA and CPA

Is ACCA like CPA? Let’s find out.
What is ACCA?

• ACCA or Association of Certified Chartered Accountants is a professional certification that’s recognized all over the world.
• Some of the many benefits of pursuing ACCA include global opportunities and financial gains.
• ACCA has become globally recognized; thus, many students have been inclined to pursue it.
• The course adds good portfolio credentials. It’s a leading international accounting body that provides certifications.

What is CPA?
–  CPA is a Certified Public Accountant. A CPA protects the interests of the public and is a very reputable work designation.
–  The importance of a CPA is the same as that of a CA in most countries.
–  The course exam is administered by the American Institute of Certified Public Accounts (AICPA), the biggest accounting body in the world.
–  CPAs have a better chance of getting recruited and have a wide scope for career growth.

ACCA vs. CPA

Global or US Focus

ACCA is renowned for being comprehensive and covering international accounting standards. It’s ideal for those who want to join the field of global accounting practices or international finance. The curriculum provides a wide coverage that ensures that the members are thoroughly equipped to navigate the complexities of the global environment, adhering to international standards and ethical considerations.
The CPA on the other hand is governed by the American Institute of Certified Public Accountants (AICPA) and state boards across the USA. The curriculum focuses on generally accepted accounting principles in America, auditing, taxation, and business law. CPA aspirants undergo meticulous training and examination to ensure they possess the expertise to uphold financial integrity. The license is a testament to one’s mastery of the accounting principles in the country, and the ability to apply the knowledge in practice.

Qualification Comparisons

The world of accounting and finance certifications could seem like navigating through a maze with a blindfold. Let’s check out some of the educational requirements of the two.
ACCA is like a Swiss Army knife, equipping you with current skills. You need three GCSEs and two A Levels in five separate subjects, which include math, non-negotiables, and English. Studying ACCA means weaving what you learn into practical skills. The ACCA journey can be completed in three years.
The CPA journey starts with having a bachelor’s degree. Nevertheless, there’s more to it since you need 150 semester hours of college. The CPA exam is divided into four parts that test your knowledge and skills in Financial Accounting and Reporting, Auditing and Attestation, Regulation, and the Discipline section. Just like ACCA, candidates should also pass an ethics exam, ensuring that members uphold the highest standards.

Exams

The ACCA exam is like a grand tour of the accounting landscape. Moreover, it’s designed to prepare you for any challenge that comes your way. The exams cover a wide range of topics, such as business law, taxation, financial reporting, and management accounting. The exams are divided into two, namely Applied Knowledge and Applied Skills. This ensures that you not only get to learn the theory, you also get to apply it in the real world.
Strategic professional exams are the final bosses of the exam series and are focused on advanced topics in financial management, business strategy, and ethics. They’re meant to polish your strategic thinking and decision-making skills. The passing rates could be around 40 percent for the tougher exams, such as Performance Management and Taxation Foundations.

The CPA Exams

CPA Exams have gone through modification, introducing a more specialized approach when it comes to testing the skills and knowledge of aspiring certified public accountants. The core sections are the foundational pillars, which include Financial Accounting and Reporting, Auditing and Attestation, and Regulation. Now, examinees can choose one of the three discipline sections that best aligns with their interests and goals.
The disciplines include Information Systems and Controls, Business Analysis and Reporting, and Tax Compliance and Planning. The CPA exam continues to be a rigorous assessment. Candidates should not only have a broad understanding of the principles of accounting but should also have a deeper knowledge of the discipline they choose. Overall, the difficulty level is hard to quantify since it now depends on the background and area of focus of the candidate. Nevertheless, there are review courses that could help you pass the first time.

ACCA Career Opportunities

ACCA pros are like explorers in the finance landscape, with their qualifications serving as a passport that opens doors to various opportunities worldwide. Equipped with the ACCA certification, here are some fields you can join.

1. International Finance

If you are into jet-setting across the globe, then ACCA could make it happen, at least in the professional sense. ACCA-certified professionals are in demand for their ability to navigate complex financial standards, which makes them highly sought after by multinational organizations.

2. Consultancy

If you prefer making strategic solutions and solving puzzles, then consultancy is a good fit for you. ACCA pros leverage their broad knowledge to advise companies on strategic planning, financial efficiency, and navigating financial risks.

3. Public Practice

This is best for those who love the thrill of new challenges and variety. It offers a dynamic environment. Professionals provide a range of services, which include tax advice, auditing, and consulting to different clients across various industry verticals.
CPA professionals are deemed as the bedrock of the US accounting and finance sector. Being a CPA signifies trustworthiness and expertise in the American context. CPA’s shine best in:

1. Public Accounting

Public accounting is the traditional stronghold of certified public accountants. They provide tax advice, audit financial statements, and provide consulting services. Public accounting companies vary from big organizations to smaller, local ones, offering a huge range of opportunities.

2. Government Sector

For those who love public service, CPAs play vital roles in government sectors, such as CGFM or Certified Government Financial Advisor. Public CPAs ensure the financial integrity of public or government institutions and manage public funds.

3. Corporate Finance

Certified public accountants are gems in the corporate world. They take on roles such as controllers, chief financial officers, and financial analysts. The expertise of CPAs helps organizations navigate financial compliance, reporting, and strategic planning.

Should You Become a CPA or an ACCA Certified?

You should be a CPA if:

• Your goal is to establish a career in the USA, especially if you’re into working within the accounting standards and regulatory framework of the United States.
• Your career aspirations include going up the corporate ladder to become a CFO or a Controller in companies based in the USA. Being a CPA can provide you with the expertise and credibility to excel.
• You see yourself working in public accounting and auditing with America. You’ll be dealing with taxation laws and American GAAP every single day. Being a CPA is the gold standard for accountants in public or government practice.
• You like the idea of applying for a key role in finance, marketing, and accounting. A CPA certification is a sign of expertise and intelligence.

You should go for an ACCA certification if:

• You want to work in a global context where understanding international financial standards is paramount. ACCA is recognized in more than 180 countries, which makes it a truly global qualification.
• You value a certification that emphasizes professional standards and ethics, together with accounting and technical finance skills. The comprehensive approach ensures competency in navigating the complex business field with integrity.
• You wish to take up senior management-level positions internationally.

Both accounting courses are equally important. Again, the ACCA certification is recognized in over 180 countries including Singapore, Canada, Australia, and India to name a few. The CPA qualification is globally recognized as well and could open doors to opportunities not just in the United States but in Asia and Europe as well.

Key Advantages

ACCA

• Global Recognition
• Master Various Skills
• Boost the Earning Potential
• Increase the Income Potential
• Join a Dynamic Community
• Unlock Confidence
• Master Adaptability
• Longevity and Security

CONCLUSION

So, is ACCA like CPA? We have come to determine the differences between the two and that they’re both giants in the accounting industry. Wrapping up, it’s obvious that both offer distinct career paths with opportunities as well as challenges. An ACCA certification opens doors to finance roles across the globe and is perfect for those who want to work on an international level or in various sectors.

The CPA designation on the other hand is the key for those who want to excel in the accounting landscape of America. Moreover, the certification offers a stronghold in corporate finance, public accounting, and government roles. The decision to pursue ACCA or CPA hinges on your aspirations, the areas of accounting and finance that you are interested in, and geographic preferences. Both paths are commendable and highly rewarding.

FAQs

Q. What are the major differences between CPA and ACCA certifications?

Ans. The CPA certification is US-centric and emphasizes American GAAP, business law, and taxation, which are essential for practicing U.S. public accounting. ACCA focuses on international financial management and accounting standards. The certification is recognized in more than 180 countries.

Q. What are the certification requirements?

Ans. Candidates for an ACCA certificate must pass thirteen exams, accomplish an ethics module, and fulfill the three-year experience requirement. CPA aspirants need 150 semester hours, pass the CPA Examination, and adhere to state-specific experience requirements.

Q. How do career opportunities differ?

Ans. An ACCA certification enables you to work in the international scene of consultancy, finance, or public practice. Typically, a CPA finds roles in corporate finance, public accounting, or government sectors within the United States of America with a focus on taxation, auditing, and compliance.

Q. What are the opportunities after CPA?

Ans. Opportunities for CPAs exist in all aspects of the business world. This includes auditing, accounting, financial advisory, corporate finance, governance, tax, investment banking, IT, and so on.

Q. Can I hold both CPA and ACCA certifications?

Ans. Yes, you can have a CPA certification and an ACCA certification. This could boost your career prospects by providing expertise in US and international accounting practices. However, you have to meet the separate requirements for each.

Q. Is it possible to do a CPA in my first year?

Ans. No. You need to have graduated, which is the minimum requirement for pursuing a certified public accountant certificate.

Q. What are the benefits of an ACCA certificate?

Ans. Because of the global recognition, the ACCA certificate provides specific benefits, such as eligibility in the global business industry. Furthermore, it gives chartered account pros access to professional development resources to stay updated. Moreover, members also receive support and ethics and compliance, which ensures that they meet only the highest professional standards.

Q. I did not get my degree in America, so do I need a CPA evaluation?

Ans. You can get a foreign academic credential evaluation. This ensures that you meet the academic requirements of a particular jurisdiction.