How to Become a Chartered Accountant in the USA?
TABLE OF CONTENTS
- What is a Chartered Accountant?
The Responsibilities of a Chartered Accountant - The Growing Demand for Chartered Accountants in the US
The Average Salaries of CAs in the USA - How to Become a Chartered Accountant
- Chartered Accountants in the USA—the Benefits
- Important Skills of a Chartered Accountant
Qualifications that Employers Look for - Final Thoughts
- FAQs
WHAT IS A CHARTERED ACCOUNTANT?
A chartered accountant is a professional qualified to take on a few specific tasks within the field of accountancy. Also known as CA, chartered accountants refer to a designation granted internationally to individuals, in countries outside America. The designation is similar to a CPA designation in the US.
Chartered accountants work in four major areas; namely, financial accounting and reporting, applied finance, taxation, and management accounting. The responsibilities could include auditing financial statements and filing taxes. To work as a chartered accountant in the USA, there are specific credentials that prove one’s qualification to file a business tax return, offer advisory services to clients, and audit financial statements among others.
The Responsibilities of a Chartered Accountant
There are four areas where a chartered accountant works.
- Taxation. This area deals with tax return preparations and tax payments by individuals, organizations, businesses, and others. The subsector focuses on revenue or income, donations, qualifying deductions, investment gains, and losses.
- Applied Finance. The practical application of financial methods and knowledge. Chartered accountants in this subsector work for businesses and other companies to build profitable financial recommendations and models.
- Management Accounting. A CA acts as a consultant by making use of the company’s financial data to inform smart decision-making and to help in managing and performing control functions.
- Financial Accounting and Reporting. FAR monitors all education and general funds, auxiliary funds, restricted funds, designation funds, and agency funds. Those who work in this subsector are responsible for maintaining a high level of comprehension of the rules and regulations. Moreover, they also provide assistance to organizations and businesses big and small.
THE GROWING DEMAND FOR CHARTERED ACCOUNTS IN THE US
There is continuous demand for chartered accountants in the USA. Various industry verticals, such as accounting, consulting, banking, and finance are looking to hire chartered accountants. CAs in the USA are liable for offering financial guidance, maintaining financial records, and preparing financial statements. Without a CA, a company may have no idea how much money they’re spending in different areas and how they can considerably boost their overall revenue.
Most chartered accountants work 40 hours per week in different industry verticals, such as in the government sector, private firms, and public organizations. Several renowned specializations include public accountants, management accountants, government accountants, and auditors. The USA is popular for paying high salaries. Being a chartered accountant in the US could mean a substantial income if you have the right experience.
The Average Salaries of CAs in the USA
A lot of reputable colleges and universities in America provide CPA courses for Chartered Accountants. Furthermore, international students are required to hold an undergraduate degree in accounting or finance. They can also choose to acquire certifications, like a CIA or CFE. Below are the average salaries for chartered accountants in the USA based on academic qualifications.
- Accounting or Finance Certificate or Diploma. The median salary for international students in the USA is between $30,000 to $65,000 per year.
- Bachelor in Accounting. The average salary for international students with an accounting degree is around $45,000 to $129,000 per year.
- Master’s Degree in Accounting. The average salary could be between $50,000 to $150,000 per year.
- Doctorate in Accounting. The average salary offered to a CA with a Ph.D. in Accounting could vary, depending on several factors. On average, however, a Chief Financial Officer or a CFO with a doctorate in accounting could take home around $193,000 per year.
HOW TO BECOME A CHARTERED ACCOUNTANT
To become a chartered accountant, a student has to complete the education and certification requirements. Furthermore, it’s also important to gain work experience.
- Earn a Bachelor’s Degree in Accounting
Obtaining a bachelor’s degree in accounting is the first step in finance and other related field. When you have this credential, you can proceed with the license process and the job experience via internships. - Apply and complete the internship. Internships are an integral part of any accounting education. Often, they turn into paid, full-time jobs upon completion. This is particularly true in huge and established corporations.
- Apply for the Chartered Accounting training program. If you opt to work as a chartered accountant, you need more advanced education than the average certified public accountant. After completion of the training program, you can take the exam and earn your CA credential.
- Work experience. Foreign employers typically require chartered accountants to have around three years of work experience.
- Create a global network. If you want to work as a CA outside the USA, it would be a good idea to start creating a professional network while completing your education requirements. In some instances, it’s appropriate to connect with relevant professionals within these firms.
- Obtain a master’s degree in accounting. While you only need to have a bachelor’s degree to become a CA a master’s degree will widen your accountancy knowledge and let you access more jobs and competitive salaries.
CHARTERED ACCOUNTANTS IN THE USA—THE BENEFITS
Across the globe, there is a steady and high demand for chartered accountants because of the simple fact that they are necessary for the global economy. Let’s find out the benefits of being a chartered accountant in America.
High Demand
In today’s business landscape, chartered accountants are in high demand. They’re sought after for their expertise in financial accounting, business advisory services, and taxation, particularly in the United States. A CA works across industry verticals, which include finance, banking, service sectors, and manufacturing. The CA qualification opens a world of career opportunities.
High Earning Prospective
A CA can expect a good salary, which is in parallel to one’s experience and expertise. This means you can enjoy financial security and stability throughout your career. In the USA, the average salary of a CA is $21,333 per month.
Global Recognition
A CA qualification is recognized all over the world. Furthermore, it’s highly respected in the international business scene. Those with CA qualifications can work anywhere in the world and become experts in their field.
Flexible Study Choices
There is a flexible study program that enables you to study at your own pace. Your choice of study could be on a full-time or part-time basis. Moreover, you can also choose online classes or distance learning. You can continue with your present job or other commitments while you study.
Professional Credibility
The chartered accountant designation is highly recognized across various industry verticals anywhere in the world. This gives you an edge in the job market scenario.
Respect and Prestige
CAs join a community of highly recognized and respected professionals known for their professionalism and expertise. The chartered accountant qualification is considered one of the most challenging and prestigious qualifications in the world today. Achieving this is a mark of excellence and earns you respect from your colleagues, clients, and peers.
Career Growth
There are numerous career choices for chartered accountants across different industries. Furthermore, they can get advanced leadership roles like a Chief Financial Officer (CFO), or a partner in an accounting firm.
Continuing Professional Development
Chartered accountants are required to participate in continuing professional development activities. This is an important factor because it helps maintain their professional designation.
IMPORTANT SKILLS OF A CHARTERED ACCOUNTANT
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Regulatory Standards Know-how
Since accounting involves the management of business finances, knowing the regulatory standards that govern personal and corporate finance is of utmost importance. Some policies safeguard investors as well as the market integrity. A CA needs to understand applicable regulatory standards to ensure compliance.
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Software Proficiency
It’s crucial to have a working knowledge of the most widely used accounting software in today’s digital world. Although giant firms may have their accounting software and a separate system for their payroll, a lot of smaller firms rely on subscription-based solutions. Thus, proficiency in these accounting tools can help you boost your earning potential.
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Understanding the Standards in Financial Reporting
It’s necessary to understand the financial reporting standards to function as a chartered accountant effectively. The standards establish a uniform set of concepts and methods for financial statement preparation. Adhering to the standards ensures consistency.
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Analytical Skills
Analytical skills enable a chartered accountant to make correct and rational judgments about numbers and data. These skills also enable a CA to analyze and assess critical facts. The skills of a chartered accountant also enable one to stay on the competitive edge.
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Organizational Skills
A CA job often includes organizing vast volumes of financial data. As the number of clients grows
Qualifications that Employers Look For
Degree requirements vary from one employer to another. It does depend on the individual employer. Below are details of what each company requires.
Graduates
- You need to apply directly to an employer. Aside from having a strong academic background, employers also look for CA candidates who stand out from the crowd and could bring something extra to their brand.
- A chartered accountant has to show a genuine interest in, and commitment, among other things, to his/her chosen career path. In general, employers look for a minimum of a B in GCSE Math and English as well as a 280+ UCAS points at A levels or an equivalent.
- A degree in accounting, business, or finance is not necessary to study. Nevertheless, you need to have a strong academic record.
School Leavers
- If you want to start work immediately, you can opt for a higher apprenticeship or a school leaver program. In the same way, if you want to go to university, you can do a degree followed by the CA qualification, or combine both.
- The school leavers scheme requirements vary, depending on the employer. Check out a few companies to determine the school leavers they require.
- You can train to become a CA without a Math A Level. The important thing is that you are competent with numbers and confident in your ability to comprehend numerical data.
FINAL THOUGHTS
The demand for chartered accountants worldwide is present in every government and organization. Even individuals hire CAs to manage their expenses. In the USA, an average CA could have an average base salary of $108,650. Thus, a CA in the US can easily earn a six-figure salary while working at some top global organizations and businesses.
FAQs
Q. How do I become a CA?
Ans. The requirements depend on the country where you live or wish to work. In most instances, you must at least have an undergraduate degree in a related field, like finance or accounting. You should also complete special coursework and work experience to get your certification.
Q. Is there a difference between a CA and a CPA?
Ans. The primary difference between the two is that the designations are used in different areas of the world. In some countries, a CA can pass a test to work in the United States as a certified public accountant since they perform most of the same functions.
Q. What can I specialize in?
Ans. There are two areas in accountancy careers, namely, financial accounting and management accounting. Most graduates get into accounting through financial accountancy which offers an array of career opportunities. In each of these specializations, graduates can opt to work in the private or the public sector.
Q. What are my opportunities to work and travel abroad with a CA certification?
Ans. Chartered accountants are recognized worldwide and 97 percent of the leading global brands in the world employ chartered accountants. With over 3,300 authorized training employers across the globe, there are terrific opportunities for international travel.
Q. How much practical experience do I need to qualify as a CA?
Ans. This depends on the starting position. Nonetheless, you need three years if you are a postgraduate or a master’s student. You need three and a half years if you graduated with a 4-year degree.
Q. How many years does it take to become a Chartered Accountant?
Ans. Becoming a CA is a remarkable milestone for those who aspire to excel in the accounting and finance field. The journey to becoming a CA generally ranges from 4 and a half to 5 years.