There might be many candidates who are interested in becoming a US CPA. Some have good reasons, while others decide based on incorrect information. In this article, Simandhar Education helps you decide whether it’s worth it for Indian CAs to pursue the US CPA designation.
Let’s start with the differences between the CPA in the USA and the CA that is granted in India and other countries. There isn’t much distinction between a CPA and a chartered accountant regarding knowledge and professional tasks. Accounting, auditing, financial reporting, and taxation are all topics covered by Certified Accountants and CPA specialists.
Furthermore, both can operate in the public and private sectors for small to very large international companies. Before you pursue either of these credentials, you should understand the eligibility criteria and the advantages
A chartered accountant is a professional who has passed the CA exams and the academic requirements in the country where they are certified. They are certified by the Institute of Chartered Accountants of India (ICAI), and they advise clients on taxes, audit accounts, and provide accurate financial data.
Chartered Accountants are also experts in the IFRS (International Financial Reporting Standards) and other international accounting standards.
The role of Indian CAs is quite similar to that of CPAs in the United States. The major difference is that the services of Indian chartered accountants are limited to India, while the US CPA credential is recognized around the globe.
Advantages of a CA license:
- Analytical And Problem-Solving Ability: Chartered Accountants in India can analyze and solve problems. To ensure a firm’s success, it is necessary to seek the assistance and advice of a finance specialist. Chartered Accountants have required usability in handling difficulties in general, making them the go-to person for any problem presented by businesses.
- Various Job Options: After earning a CA degree, you have many options when it comes to choosing a career path. Auditing and accounting are the most desirable jobs. A CA can work as a consultant, SAP specialist; the possibilities are endless in this sector.
- On-Demand: Being a Chartered Accountant is an excellent decision and essential for the advancement in the sector because chartered accountants play such a vital role in managing funds and the working of finance and accounting-related activities.
CPA in the USA
The CPA (Certified Public Accountant) is an accounting credential awarded to people who have completed specified education and experience criteria to work as a public accountant. The CPA license is given at the state level by each jurisdiction’s Board of Accountancy, not at the federal level, each of the United States’ 50 states and five territories has 55 jurisdictions.
To earn and hold your CPA license, each jurisdiction has slightly different criteria, however, usually include the three benchmarks listed below.
- Accounting training can help you earn a bachelor’s degree and 150 hours of higher education.
- Pass the four-part CPA exam in the duration of 18 months.
- Have at least one year of qualified and documented job experience, depending on the jurisdiction.
- CPA candidates in some states must additionally pass an ethics exam before they can seek licensure.
The Advantages of a CPA License
The CPA certificate has numerous advantages, particularly for people who aim to work for organizations situated in the United States.
- To begin with, CPAs have a thorough understanding of US GAAP (Generally Accepted Accounting Principles) and federal income taxation in the United States. Furthermore, they are familiar with various accounting documentation utilized by publicly traded corporations in the United States.
- Only CPAs can sign an audit report on behalf of an accounting firm in several states. In some states, only CPAs are allowed to provide compilation services.
- Many large firms want their senior financial executives to acquire a CPA certification to demonstrate their knowledge and skill in the field.
In India, there is a growing need for US CPAs. Many global corporations have entered India in recent decades, resulting in significant regional expansion. Often, an Indian company’s financial reporting must be connected with worldwide accounts that must adhere to US GAAP or IFRS.
As a result, accounting professionals are increasingly required to be knowledgeable about a variety of standards.
Hope this article helped you get a clear idea about both the credentials. If you still have any questions on the difference between CA and CPA in the United States, please feel free to connect us at [email protected]