Differences Between ACCA and CPA USA
Sun Jul 09 2023
Table of Contents
Introduction
In today’s interconnected world, especially within multinational corporations and Big 4 firms, the demand for professionals with a deep understanding of international accounting standards is more critical than ever.
US GAAP and IFRS remain two of the most widely used standards globally. While US GAAP is essential for companies operating in or dealing with the US, IFRS is the common language for international transactions.
Professionals who pursue credentials like the ACCA or CPA gain specialized knowledge that equips them to navigate complex financial landscapes and bring added value to their organizations.
In this blog, we’ll dive into the key distinctions between ACCA and CPA, comparing everything from global recognition and career opportunities to eligibility, exam structure, and skills gained.
By the end, you’ll have a clear picture of which path aligns best with your career goals, whether you’re aiming to excel in US-based financial reporting or international accounting under IFRS.
ACCA vs CPA Comparison Overview
| Criteria | ACCA (Association of Chartered Certified Accountants) | CPA (Certified Public Accountant) |
|---|---|---|
| Global Recognition | Recognized in 180+ countries, strong in IFRS. | Highly regarded in the US, recognized globally. |
| Focus Areas | Emphasizes IFRS for international roles. | Focuses on US GAAP for accounting roles in the US. |
| Eligibility | Requires 10+2 completion; degree beneficial. | Requires 120 credit hours of education. |
| Exam Structure | 13 exams across three levels. | Four sections to complete within 30 months. |
| Course Duration | Typically 2–3 years. | Generally 12–18 months, often faster. |
| Career Opportunities | Roles in finance, auditing, and consulting internationally. | Public accounting, corporate finance, and tax roles. |
| Salary Potential | Competitive globally, especially in senior roles. | High starting salaries, significant growth in senior roles. |
| Work Experience Requirement | Three years in relevant fields. | 1–2 years supervised experience under a CPA. |
1. Global Recognition
ACCA: ACCA is recognized in over 180 countries, making it a leading global accounting qualification. Its strong emphasis on IFRS (International Financial Reporting Standards) makes it particularly suitable for professionals seeking opportunities in Europe, Asia, Africa, and the Middle East, where IFRS is commonly used in financial reporting.
CPA: The CPA credential is highly regarded in the US and is essential for careers in public accounting and finance within the country. While primarily focused on US GAAP (Generally Accepted Accounting Principles), it is recognized internationally, especially among US-based multinational corporations that require expertise in US financial regulations and reporting standards.
2. Primary Areas of Focus
ACCA: ACCA emphasizes International Financial Reporting Standards (IFRS), making it ideal for roles in international accounting, financial analysis, and auditing. ACCA-certified professionals are often employed in organizations where IFRS compliance is critical.
CPA: The CPA credential focuses on US Generally Accepted Accounting Principles (US GAAP), making it well-suited for positions in the US and firms that need in-depth knowledge of US financial regulations. CPAs are essential in roles involving auditing, tax, and financial reporting.
3. Eligibility
ACCA: To pursue the ACCA (Association of Chartered Certified Accountants)qualification, candidates must have completed their 10+2 examinations, making it oi after high school. While a bachelor’s degree is not mandatory, it can be advantageous as it may grant exemptions from certain ACCA exams, streamlining the path to qualification.
CPA: To sit for the CPA exam, candidates generally need to complete 120 credit hours of education. This requirement can be achieved through a Bachelor of Commerce (B.Com) degree, supplemented by a bridge course, or through a Master of Commerce (M.Com) or an MBA program.
4. Exam Structure
ACCA: Comprises 13 exams, divided into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. Some exemptions may apply based on previous education, reducing the number of exams required.
CPA: Consists of four sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG) and an elective section (BAR/ISC/TCP). Candidates must pass all four sections of the CPA exam within a 30-month window. This extension from the previous 18-month period is implemented to provide greater flexibility and support for students as they navigate their CPA exam preparations.
5. Course Duration
ACCA: The ACCA qualification typically takes 2-3 years to complete, but this duration can vary significantly based on individual circumstances. Factors such as previous academic qualifications, exemptions available for certain subjects, and the candidate's study pace all influence the time it takes to finish the program.
CPA:The CPA credential is generally completed within 12-18 months, although many candidates manage to finish it within a year. The accelerated timeline is often due to the structured nature of the CPA exam, which consists of four sections that can be taken in any order. Candidates can schedule their exams strategically to maximize their chances of success, and many find that with dedicated preparation and focused study, they can complete the requirements more quickly.
6. Career Opportunities
ACCA: ACCA-qualified professionals often pursue diverse career paths in international finance, auditing, risk management, and consulting. Their expertise in International Financial Reporting Standards (IFRS) opens doors to roles in regions that prioritize these standards, such as Europe and Asia. ACCA members can be found in multinational corporations, financial institutions, and advisory firms, where they contribute to financial reporting, compliance, and strategic decision-making. The global recognition of the ACCA qualification enhances opportunities for career advancement across various industries, making it a valuable credential for those seeking to work in a global context.
US CPA: Most CPAs find employment in public accounting firms, corporate finance departments, tax advisory, and auditing roles primarily within the United States. The CPA credential is highly respected in the US market, and many CPAs also explore global opportunities with firms that operate under US GAAP. The skills gained through the CPA program prepare candidates for leadership positions in financial management, compliance, and strategic planning, with many advancing to senior roles in accounting firms, corporate finance departments, and consulting agencies.
7. Salary Potential
ACCA:Salary levels for ACCA professionals can vary based on region, industry, and experience. However, they tend to be competitive in global markets, particularly in regions such as Europe, the Middle East, and Asia, where demand for skilled finance professionals remains strong. ACCA members in higher-level roles, such as finance managers or directors, can expect solid compensation packages that reflect their expertise and contributions to their organizations.
CPA: CPAs typically command high salaries, especially in the US, where starting salaries are competitive compared to other professions. As CPAs gain experience and advance into senior-level positions, such as partners in public accounting firms or chief financial officers in corporations, their earning potential increases significantly. The structured career progression within the accounting field often allows CPAs to experience faster salary growth and enhanced benefits as they move up the ladder.
8. Work Experience Requirement
ACCA Membership:To achieve full ACCA membership, candidates are required to complete a minimum of three years of relevant practical experience in accounting or finance. This experience can be acquired before, during, or after taking the ACCA exams, allowing flexibility for candidates to integrate their professional development with their studies. The experience must be documented and verified to ensure it aligns with ACCA's standards and competencies.
CPA License:For a CPA license, candidates typically need to complete one to two years of supervised work experience under the guidance of a licensed CPA, though specific requirements can vary by state. This experience is crucial for developing practical skills in areas such as auditing, tax preparation, and financial reporting, and it must be completed in a relevant accounting role to qualify for licensure.
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Conclusion
In conclusion, for students aspiring to a successful career in accounting, both the ACCA and CPA qualifications present unique advantages tailored to different professional paths.
The ACCA is valued for its global recognition, emphasizing International Financial Reporting Standards (IFRS), which positions candidates favourably for roles in multinational corporations and international finance.
Conversely, the CPA credential is essential for those aiming to establish a strong foothold in the US accounting landscape, focusing on US GAAP and preparing candidates for lucrative opportunities in public accounting and corporate finance.
Ultimately, the decision between ACCA and CPA hinges on individual career goals, geographical aspirations, and the specific expertise desired, making both qualifications excellent choices for students aiming to elevate their professional prospects in the accounting field.
FAQs
1. What are the basic eligibility criteria for US CPA and ACCA?
US CPA generally requires a Master’s or equivalent with 120–150 credits including accounting subjects. ACCA can be started after 10th grade, with eligibility based on A-Levels or equivalent; graduates may get paper exemptions.
2. How do the CPA and ACCA exams differ in terms of structure and duration?
US CPA has 4 exams, fully computerized, and can be completed in 12–18 months. ACCA has up to 13 papers, some paper-based, and typically takes 3–5 years to complete.
3. What are the passing marks for CPA and ACCA?
To clear US CPA, candidates need a 75% score in each paper. For ACCA, a 50% score is sufficient to pass each paper.
4. Which is more globally recognized: CPA USA or ACCA?
Both are globally respected. US CPA is favored in US-based MNCs and international firms, while ACCA is widely accepted in the UK, Europe, and Commonwealth countries.
5. What job opportunities do CPA and ACCA open up globally?
US CPA is highly valued in the US and MNCs, allowing roles in audit, finance, and leadership with the legal right to sign audit reports. ACCA is globally accepted, especially in the UK, but ACCA India professionals cannot sign audit reports or start an audit firm in India.
6. Which is easier to pursue in terms of exam load and flexibility?
US CPA is considered more feasible with only 4 exams and flexible scheduling. ACCA has more exams and a longer duration but offers exemptions and multiple exam sittings per year worldwide.