ACCA vs CPA: 9 Essential Differences You Must Know!

Job aspirants intending to make a career in accounting often look out for two prominent certifications recognised 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.  

What Is ACCA?

The Association of Chartered Certified Accountants is a UK-based membership body. It accredits professional accountants globally and confers one of the leading accountancy qualifications to finance professionals.

Students with the ACCA qualification gain comprehensive accounting knowledge and skills, from financial accounting, taxation, and management accounting to business ethics. Completing the ACCA programme and clearing the professional examinations qualifies one to be a Chartered Certified Accountant. 

What Is CPA?

The Certified Public Accountant (CPA) designation is conferred to licensed accounting professionals by the Board of Accountancy for each state in the USA. In many countries, including India, the Indian Accountant designation is at par with the CPA designation. 

The CPA (US) curriculum covers financial accounting and reporting, concepts of auditing and attestation, regulatory aspects like business law and ethics, taxation, and concepts such as corporate governance, strategic planning, and financial and operations management. Students completing the US CPA can further become CPA Canada.

Understanding ACCA vs CPA Differences

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

1. Eligibility 

ACCA: Candidates with the following qualifications are eligible to take up the ACCA course:

• 10th pass out
• 12th pass out (any stream)
• Graduates
• Postgraduates (M.Com, MBA)
• CAs, CMAs (5+ years of experience)
• CA Intermediates
• Students from any academic background aspiring to make a career in finance and/or accounting

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. 

Eligibility to take CPA exams:

• 120 credits (one year of Indian university education typically earns 30 credits)
• Based on foreign academic credential evaluation
• Decided by 55 State Boards of Accountancy

Eligibility for CPA license:

• 150 credits
• 2 years of work experience
• Fulfill the 4 Es (Examinations, Education, Experience, Ethics examination)
• Licence to be earned within 3 years of clearing all examinations

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: Prior qualifications play a crucial role in determining the duration of the ACCA programme. 

• 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: Candidates can take 12-18 months to clear all exams of the CPA programme.  

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. 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: On-demand ACCA computer-based examinations (CBEs) can be taken at any time of the year. Session CBEs are held in March, June, September and December. Candidates must book their exams ahead of each session deadline.

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

7. 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. 

8. Job profiles

ACCA: Candidates with an ACCA qualification are eligible for the positions of Financial Accountants, Management Accountants,  Tax Specialists, Financial Managers, Financial Consultants, and so on. 

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

9. ACCA vs CPA salary

ACCA: ACCA salaries in India range from INR 6.4 LPA to INR 16.7 LPA, depending on the position applied for and years of experience.

CPA: The salary of CPA professionals in India can range from INR 5.9 LPA (<1 year of experience) to INR 24 LPA (10-19 years of experience). 

Conclusion

Comparing ACCA and CPA on various parameters, the question you must ask is, ACCA or CPA: Which is better?

Drawing a clear winner between any two career programmes is quite challenging. We have compared many more courses in the past, like ACCA vs CA and CFA vs CPA and have seen that every course has to offer something unique and different. The choice, ultimately, depends on the candidate’s preferences.

Both ACCA and CPA open up excellent career opportunities for freshers and professionals. While ACCA offers a broader global perspective, CPA is more relevant in the US market and focuses on American accounting regulations and principles. 

The course duration and structures are also significantly different, ultimately leaving the choice to the candidate. If you, too, are considering these accounting courses, understand the ACCA vs CPA differences and choose the one that aligns with your career goals. 

Visit The WallStreet School India to learn more about the ACCA and CPA course details, including structure, duration and eligibility. Avail 100% placement assistance, skill-based training, on-demand LMS access, and more.

FAQs

• How useful is ACCA in the USA?

Although most countries recognise the ACCA qualification, it is not highly recognised 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%. 

• Do Indian companies hire ACCA?

The Big 4 firms and various MNCs in India hire professionals with the ACCA qualification. However, unlike Indian Accountants (CAs), ACCA members do not enjoy signatory authority in India.