Choosing between ACCA and CPA is one of the most common dilemmas for commerce students. If you too are an accounting and finance student who is looking for a global career, you can relate. Both qualifications are internationally recognised and can get you high paying career opportunities. But the right choice depends on you! Your career goal, location preferences and interests can affect this choice. Lets break this down step by step.
What is ACCA?
ACCA stands for Association of Chartered Certified Accountants. It is a UK based professional qualification in accounting and finance that is recognised in over 180+ countries. The ACCA course develops expertise in areas such as:
- Financial Accounting
- Management Accounting
- Auditing and Assurance
- Taxation
- Business Law
- Financial management
- Strategic Leadership.
ACCA professionals are in high demand in MNCs, Big 4 firms, consulting companies, banks and global financial institutions. This course is suitable for students and professionals who want a career in finance and accounting with flexibility in location and practice.
What is CPA course?
The full form of CPA is Certified Public Accountant. It is a US based accounting qualification and is highly recognised in the United States and several other countries.
The CPA course focuses on-
- Auditing and Attestation
- Financial Accounting and Reporting
- Taxation and Regulation
- Information Systems and Controls
- Tax Compliance and Planning
- Business Analysis and Reporting
CPA is just perfect for those professionals who are aiming to work in public accounting, auditing, taxation and consulting. And specially those who want to go abroad. It requires the students to meet strict eligibility criteria including education and experience. It depends on the state licensing requirements.
How to Become ACCA
Becoming an ACCA member means a structured process that combines exams, practical experience and professional ethics.
Eligibility:
- 10th pass students can pursue ACCA through the Foundations in Accountancy route
- 12th pass students with commerce or equivalent qualifications can take the normal route.
Exams: ACCA has 13 papers that are divided into 3 levels:
- Applied Knowledge- 3 papers
- Applied Skills- 6 papers
- Strategic Professional- 4 papers ( 2 compulsory with 2 optionals that you have to choose out of 4)
Experience: Complete 3 years of relevant work experience in accounting, finance, auditing or taxation field.
Ethics Module: Complete the Ethics and Professional Skills Module (EPSM) to develop professional and ethical decision making skills
Membership: After completing exams, practical experience requirements and the ethics module, you become a full ACCA member.
Flexibility: ACCA exams are flexible. They are conducted 4 times per year and help the students to study at their own pace.
How to become CPA
The CPA exam is governed by the AICPA (American Institute of Certified Public Accountants). Here is a step by step path to becoming one:
Eligibility: Bachelor’s degree or higher (minimum of 120-150 credit hours depending on the state). Education must include accounting and business related subjects.
Exams: CPA has 4 sections and each of them can be taken separately.
Experience Requirement: A minimum of 2000 hours of verified work experience in no more than 3 years.
Licensing: After passing the exams and completing the experience requirements, students can apply for CPA license in the state they choose.
| Factor | ACCA | CPA |
| Full form | Association of Chartered Certified Accountants | Certified Public Accountant |
| Recognition | 180+ countries | 170+ countries |
| Focus | International Accounting, IFRS, finance, management | Taxation, Auditing, Accounting, Regulation |
| Exams | 13 papers | 4 levels |
| Duration | 1 to 3 years | 1 year |
| Eligibility | 10th passed | Bachelor’s + credit points |
| Career Roles | Finance Manager, Auditor, CFO, consultant | Auditor, Tax consultant, Financial Analyst |
Which One should you choose?
Choose ACCA if:
- You want a global mobility and recognition
- You prefer flexibility in exam attempts and pace
- You want careers in international accounting, managemnet accounting and corporate finance.
Choose CPA if:
- You aim to work abroad in US.
- You want to specialise in audit, taxation and accounting
- You prefer a highly structured and rigorous qualification with US regultory focus.
Conclusion
Both ACCA and CPA are excellent qualifications for finance and accounting professionals. Both of them focus on different areas. ACCA provides global flexibility while CPA is amazing for taxation and public accounting roles.
Frequently Asked Questions
- How many total papers are there in ACCA?
There are a total of 13 papers in ACCA, with 2 optionals and they are grouped across three levels:
- Applied Knowledge (3 papers)
- Applied Skills (6 papers)
- Strategic Professional (4 papers)
- What are the passing marks in CPA?
In order to pass any CPA exam section, it is compulsory to score at least a minimum of 75 marks out of the total of that section.
- Can we start ACCA right after 12th?
Yes, a candidate can start their ACCA preparation right after their 10+2 examination.
