ACCA vs CPA: Difficulty Level, Salary & 10 Differences [Updated 2023] (2024)

ACCA or CPA: An Overview

Job aspirants intending to make a career in accounting often look out for two prominent certifications accredited globally — the ACCA (Association of Chartered Certified Accountants) and CPA (Certified Public Accountant).

From hospitality and healthcare to retail and banking, from the Big 4 to other leading public and private firms, accountancy qualifications like ACCA and CPA offer unlimited roles and a versatile, rewarding profession. However, when deciding between the two, candidates are often baffled by the ACCA vs CPA debate and which one to choose.

Before we go on to understand ACCA vs CPA differences and decide which is better, let us take a look at what ACCA and CPA mean in the first place.

What is ACCA?

ACCA stands for Association of Chartered Certified Accountants. It is a globally recognised and accredited professional accounting body based in the United Kingdom.

The ACCA Course offers comprehensive accounting knowledge from financial accounting, taxation, and management accounting to audit and business ethics. A candidate becomes a Chartered Certified Accountant upon completing the course.

What is CPA?

CPA stands for Certified Public Accountant. This designation is conferred to licensed accounting professionals by the Board of Accountancy for each state in the USA. In many countries, the Chartered Accountant (CA) designation is at par with the CPA designation.

A CPA is highly proficient in various accounting tasks like generating reports which reflect perfect business dealings of companies with other organisations or individuals. CPAs are experts in tax filing and reporting for individuals and business organisations. They also know various means of maximising profitability and minimising taxes.

ACCA vs CPA Differences

Though both these programs are related to accounting, there are several differences between them. Let us address the ACCA vs CPA debate based on factors like eligibility, course structure, duration, job profile and recognition.

1) Eligibility

ACCA: Candidates applying for the ACCA course must clear the 10+2 examination with an aggregate of 65% in Mathematics/Accounts and English. They should have a minimum of 50% in the other subjects.

CPA: CPA exam prerequisites vary from one state in the USA to the other. However, the standard criteria are that the candidate should have a bachelor’s or equivalent degree, preferably in accounting, finance or business administration. They must have completed 150 semester hours of college courses and have 1-2 years of experience under any licensed CPA.

2. Examination Pattern

ACCA: There are 3 levels in the ACCA exams — Applied Knowledge, Applied Skills and Strategic Professional with 13 papers. The Applied Knowledge level has 3 papers, the Applied Skills level has 6 papers, and the Strategic Professional level has 2 mandatory and 2 elective papers. All exams are computer-based.

Please note that prior qualifications of students decide the exemptions (up to 9 papers) they can avail of in the ACCA examinations.

CPA: The CPA curriculum has 4 examinations — Business Environment and Concepts (BEC), Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR) and Regulations (REG). Each exam lasts 4 hours.

The sections mainly focus on US Taxation and US Generally Accepted Accounting Principles (GAAP). All exams are computer-based.

3) Course Duration

ACCA: On an average it takes around 2 to 2.5 years to complete all the ACCA papers. Prior education and individual circ*mstances play a crucial role in determining the duration of the ACCA programme. Candidates who need to take the Foundation course take a little more time to complete the course than others.

• 2.5 – 3 years (Undergraduates and below, 13 ACCA exams)
• 2 – 2.5 years (Commerce graduates and above, 9 ACCA exams)
• 1.5 – 2 years (Commerce graduate + CA Inter, 7 ACCA exams)
• 1 – 1.5 years (CAs and CMAs with 5+ years of experience, 4 ACCA exams)

CPA: To prepare and pass all these four papers, candidates need a minimum of 8-12 months.For a CPA certification, the candidate must have a bachelor’s degree and complete at least 120-150 credit hours of education. There are four sections of the CPA examination.

4) Recognition

ACCA: ACCA is globally accredited and recognised in more than 180 nations. ACCA has Mutual Recognition Agreements (MRAs) with many professional accounting bodies worldwide. As a result, ACCA members can fast-track their qualifications or gain exemptions in other countries.

CPA: Like ACCA, CPA is widely recognised as well. But it is most highly regarded in the USA. Applicability for the CPA license outside the USA will depend on the respective country’s requirements and regulations.

5) Examination Dates

ACCA: In ACCA, candidates can appear for the ‘Knowledge’ level examinations online. These exams are on-demand and can be taken anytime throughout the year. ‘Skill’ level and ‘Professional’ level examinations are online and held 4 times yearly in March, June, September and December.

CPA: Candidates can take the US CPA examinations on-demand in January, February, April, May, July, August, October and November.

6) Focus on International Standards

ACCA: ACCA relies on IFRS (International Financial Reporting Standards). It emphasises and ensures an in-depth understanding of global accounting practices.

CPA: CPA mainly focuses on Generally Accepted Accounting Principles (GAAP). It also covers International Accounting Standards.

7) Organising Body

ACCA: The Association of Chartered Certified Accountants is the global body based in Glasgow, UK, which offers the certification to Chartered Certified Accountants after they complete the course successfully.

CPA: The CPA exams are organised by the American Institute of Certified Public Accountants (AICPA), USA.

8) Ongoing Learning and Development

ACCA: Candidates must participate in Continuing Professional Development (CPD) to maintain ACCA membership. This includes completing relevant activities for earning CPD units annually.

CPA: Candidates must fulfil CPE (Continuing Professional Education) requirements to maintain a CPA license. Generally, candidates must complete a specific number of CPE hours within a stipulated time frame.

9) Job Profiles

ACCA: Some standard job profiles that candidates pursue after ACCA certification are that of Accountant, Internal Auditor, Tax Manager, Finance Manager, Financial Consultant, etc.

CPA: On completion of the CPA course, candidates can make a career as a Public Accountant, Forensic Accountant, Financial Analyst, Internal Auditor, etc.

10) ACCA vs CPA Salary

ACCA: The average base salary for a candidate with ACCA certification in India is approximately INR 636,000 annually. The amount ranges between INR 20 lakhs to INR 50 lakhs per annum, depending on the experience and other qualifications of the candidate.

Source: Payscale

CPA: The average base salary for a candidate with CPA in India is approximately INR 687,787 per annum. Experience and other additional certifications can increase remuneration.

Source: Payscale

Conclusion

Drawing a clear winner between any 2 career programs is quite challenging. We have compared many more courses in the past like ACCA vs CA, CFA vs CPA and have seen that every courses offers something unique and different from the other.

Even in this case, both courses are prestigious accounting certifications opening up excellent career and job opportunities for freshers and professionals. ACCA offers a broader global perspective, while CPA is more relevant in the US market and inclined towards the country’s accounting regulations and principles.

Understand the ACCA vs CPA differences and choose the programme depending on your preferences and career goals. ACCA aspirants can enrol in ACCA Coaching Classes offered by The WallStreet School for skill-based training and placement assistance.

FAQs

• How useful is ACCA in the USA?

Though the ACCA certification is globally recognised, it is not highly accredited in the USA. There is no reciprocal agreement that a candidate with ACCA certification will qualify for licensed CPA status.

• Which is more difficult: ACCA or CPA?

There are various factors to consider when it comes to understanding the difficulty levels of ACCA vs CPA. Both examinations are challenging and need hard work and diligence to clear. While the average pass rate for ACCA is around 55%, for CPA, the percentage is around 40-50%.

• What is the salary of an ACCA and CPA in India?

The average base salary for a candidate with ACCA certification in India is approximately INR 636,000 annually. On the contrary, the average annual base salary for a candidate with CPA in India is approximately INR 687,787.