The demand for expertise in the accounting profession has grown exponentially over the years. There are several reasons for this, one of which is the growing complexity of businesses and processes.
To make a career in accounting and finance and reach the highest levels possible, a professional certification is almost mandatory. Two of the most valued credentials in accounting today are the Certified Public Account (CPA) in the USA and Chartered Accountant (CA) in the rest of the world. The CA credential is much more common in countries like India, the UK and Australia.
The CPA and CA certifications are your best bet to landing prestigious jobs and salaries. Depending where you live, you might be wondering which one to choose from. To help you decide, this post will walk you through the key differences between each credential. Everything from CPA vs CA salary comparisons, eligibility criteria, levels of difficulty, and CPA vs CA differences in the UK, Canada, India, and Australia.
Let’s dive in!
Contents
CPA vs CA – Better, Tougher, and Main Differences
Which is better?
It’s not easy to say which credential is better. Both can lead to very successful careers and lucrative salaries. The CA vs CPA debate is thus very subjective.
The CPA is awarded by the American Institute of Certified Public Accountants (AICPA). The CPA license is ideal if your career goal is working for an American company or a global corporation.
On the other hand, a CA credential in India, the UK, Australia, or Canada is ideal if you want to work or set up practice in that country.
Exam Difficulty
Each credential has its advantages and disadvantages.
There are many differences between each credential. From eligibility criteria, to career prospects, and curriculum.
The CPA exam can be completed in 12-18 months while the CA can take 3-4 years. The timelines don’t mean much though. Lots of hard work and dedication is required regardless of which credential you choose.
CPA vs CA – The Main Differences
The main differences between CPA vs CA can be summarized as follows.
- CPA stands for Certified Public Accountant and the exam is conducted by the American Institute of Certified Public Accountants (AICPA). CA denotes a Chartered Accountant and the exam is conducted by boards of the respective countries. In India, The Institute of Chartered Accountants oversees the exam.
- The CPA credential is recognized internationally whereas for CA, it is typically restricted to the country of passing the exam or other specific countries. For example, an Indian CA is recognized in a few countries in the Middle East.
- CPA includes International Financial Reporting Standards (IFRS), as well as General Accepted Accounting Principles (GAAP). The CA is restricted to GAAP only.
- A CA aspirant takes about four to five years to complete the program while that of a CPA aspirant is about 12 to 18 months.
- The CPA exams are held in an online environment but for CA (India), the exams are held offline.
- To get and maintain a license, a CPA candidate must complete the uniform CPA exam and the Ethics exam, as well as 40 hours of continuing education per year. For a CA license, in India, a candidate must complete three years of Internship in a firm of Chartered Accountants.
- There are four parts to the CPA exam: FAR (Financial Accounting and Reporting), AUD (Auditing and Attestation), BEC (Business Environment and Concepts), and REG (Regulation). By contrast, the CA exams are held through three levels. The Common Proficiency Test (CPT), the Integrated Professional Competence Test (CPT), and the final exam.
These are the main points of differences between CPA vs CA.
CPA vs CA Salary
Since a comparison is being made here between CPA vs CA salary, the focus salaries outside of the USA. There’s a substantial difference between what CPAs in the USA get and CPAs in other countries.
For example, the average salary of fresher CPAs in the USA is about $67,000. By comparison, a newer CPA from India and employed in the country can expect to earn is ₹952,000 or $12,000. The difference is largely due to the conversion rate of the Indian rupee against the USD.
Again, CPAs with decent experience in the USA can draw an average of $165,000 in salary while a CPA with equal experience in India gets about ₹65,00,000 or $81,000. Adjusting for cost-of-living factor, there isn’t much difference between the two when considering CA vs CPA in India.
Now let’s look at what Chartered Accountants typically get in India. While the annual compensation of a Chartered Accountant in India is ₹6-7 lacs at the start (1 USD = 82₹ approximately). Average pay can fluctuate a lot depending on the designation and the level of responsibility.
Those CAs working in Financial Analysis, Strategic Accounts, and Financial Advisor get higher remuneration. The salary increases greatly with experience and CAs working outside India often earn over ₹75 lacs or $94,000.
US CPA vs UK CA
Since we’ve gone through the details of the CPA credential, this section will be on the UK CA.
Many organizations provide the examination for CAs in the UK. These include the Institute of Chartered Accountants of Scotland, (ICAS) and the Institute of Chartered Accountants of England and Wales (ICAEW).
Salaries of CPAs and CAs can depend a lot on the designation and years of experience. Geographical location matters a lot too. The median salary in the US for CPAs is $62,410. Meanwhile, the median salary in the UK for CAs is £34,637 ($44,849). Both the certifications in the UK have great upward mobility and can earn more than $150,000 pa with experience.
The time to complete the CA credential depends on the country you want to practice in.
For example, check out the options provided by the ICAS to be eligible to get the CA credential.
- Graduate entry route for university graduates requiring three years of training under an ICAS-approved employer.
- Professional entry route for experienced finance professionals with a university degree or five years of relevant experience.
- The pathways route where members of the Chartered Institute of Public Finance and Accountancy (CIPFA) get the opportunity to become a member of the ICAS and earn the CA designation.
Further, there are two pathways, one focuses on the relevant expertise and the other on practical competence.
As was pointed out earlier, in US CPA vs UK CA, neither of these certifications is better than the other. They are simply different and used for specific purposes. In short, it boils down to what you want to do and where you want to work.
Canadian CPA vs American CPA
A Chartered Professional Accountant (CPA) in Canada is a finance professional working in various accounting environments such as government, private companies, and private practice. This CPA Canada designation was introduced when three previous designations were amalgamated into one – Chartered Accountant (CA), Certified General Accountant (CGA), and Certified Management Accountant (CMA).
Comparing Canadian CPA vs American CPA throws up an interesting fact. CPAs in the US can earn Canada CPA designation without any additional exams provided all the eligibility criteria of becoming a US CPA like credit hours and work experience apart from passing the CPA exam are complied with. However, to earn a Canada Certified Professional Accountant certification, you have to register with the regional or provincial CPA body.
Even though the CA designation has been rolled into CPA, you can still become a CA in Canada by following different pathways and taking the CPA Professional Education Program (PEP). This is for full-time accounting professionals and is a two-year part-time accounting program. It consists of six modules that test technical competencies such as financial reporting and management accounting and has various electives like tax and finance, assurance, and performance management that you can choose from.
There are also default routes that enable you to earn the Canadian CA designation.
These include:
- Obtaining an undergraduate degree in a relevant field from a recognized university in Canada
- Going through 30 months of relevant accounting experience
- Enrolling in the CPA Professional Education Program (PEP)
- Completing the 3-day Uniform Evaluation (UE) exam that tests accounting knowledge and competency
- Finishing four education modules while undertaking full-time work experience.
Once you become a Canadian CA, there is a higher salary, more job security, and greater work variety and options to look forward to.
CA vs CPA Australia
As is elsewhere in the world, CPAs in Australia have a wide range of accounting and finance skills and are involved in business management, financial planning, financial analysis and advice, and more. They have a degree in business, finance, or accounting and have completed the CPA program that is overseen by CPA Australia, an accounting body.
A Chartered Accountant (CA), on the other hand, is a technical tax and accounting specialist mostly working in the corporate sector, large companies, and professional industries. To become a CA, you must first register with the Institute of Chartered Accountants Australia New Zealand (ICAANZ).
Chartered Accountants are mainly responsible for ensuring that companies comply with financial laws and regulations as laid down by the Australian Securities and Investments Commission (ASIC). Their roles and responsibilities include auditing and assurance, business services, business valuations, leadership roles like CFO, and financial control.
Comparing CA vs CPA Australia, to complete CA credentials, ICAANZ requires an accredited degree or similar qualification with constant support provided through Open Universities Australia. However, that is not needed for the CPA Australia Foundation exam and candidates do not get the same help since they study outside the University.
So far as CPA vs CA salary in Australia is concerned, both the designations are highly respected and earn a decent income in the country. Here are the average salaries for both roles.
- Graduate level (freshers): CPA $56,000 pa, CA $52,000 pa
- Mid-career level: CPA $77,000 pa, CA $73,000
- Senior level: CPA $115,000 pa, CA $111,000 pa
These are some of the aspects of CA vs CPA Australia
Summing up
There are several angles to consider when choosing between CPA vs CA as a career goal. However, deciding which one is better is not easy as both lead to very lucrative salaries and high career goals. The same goes for which is more difficult as the exam structure, eligibility criteria, and curriculum are different even though both are related to the accounting and finance niche.
While the AICPA conducts the CPA exam, the CA exams are held by various boards and Institutes of the respective countries such as India, the UK, Canada, and Australia. Hence, there is no uniformity in the CA exams held all over the world.
As to the salary of CPAs and CAs, the former has a slight edge in every country where the CA credential is awarded.
Finally, which credential is suitable for you? Choose CA if your career goal is within that country but opt for CPA if your dream job is overseas or in a global corporation.
