Before comparing between both the designations, we should understand what CPA and CA mean? Let’s take a look:
US CPA and CA (the brother from another from another mother)
Certified Public Accountant (CPA) is the highest designation in the field of Accounting and Finance, awarded by AICPA. CPAs are recognised globally as top-ranking accountants and are hired all over the world.
(AICPA) is the world’s largest accounting association with 450,000+ members across 130 countries. It was founded in 1887, having a 130+ year old legacy.
The relatively newer body of ICAI (founded in 1949) is India’s largest member organisation representing the accounting profession in India. Chartered Accountancy is India’s highest qualification in Accounting and Finance. A C.A. in India is very well respected and compensated. Cracking the C.A. exam is very challenging due to the low passing % and high number of students appearing for the exam. C.A.s are placed across industries as the key members of the accounting profession in India and abroad.
Here are the tables which will explain to you the difference in both the courses vividly on the basis of Course Duration, Eligibility (When can you start? & How to become a C.A. or a US CPA?)
| C.A. | US CPA |
|---|---|
| CA is a degree course so it is quite lengthy and intense. | CPA focuses mainly on providing accounting and taxation knowledge. |
| It requires you to do tough preparations for straight 4 years and studies are interspersed with a 3-year articleship training. | To be a CPA it requires you to complete 150 credit hours. |
| So, if you imagine your life in these 3 years of articleship, your day will start withyour training/ tuition/ preparation in the morning.followed by the office the whole day, and | Therefore, one has to do rigorous study to prepare for the exams. However, within 1 year you will complete the CPA course. |
| then tuition again in the evening. In short, the duration of being a C.A. will take 7-8 years of your life. | CPA requires you to have one year of post qualification experience to obtain COP/ licence. |
Now most of the individuals are confused about the eligibility of both CA and CPA. The pointers below will answer your query about eligibility:
| C.A. | US CPA |
|---|---|
| In India you can start preparing for the CA exam immediately after you have completed your 12th standard. | In terms of the Indian system, CPA requires you to have completed your Bachelor’s and 1st year of Master’s Degree. |
| It requires you to put 4 years of your life to prepare for the exams. |
| C.A. | US CPA |
|---|---|
| Pass out class 12th | You need 120 credits (equivalent of Graduation in Commerce or Graduation + 1st year of Post Graduation) |
| Clear the Common Proficiency Test (CPT) (except for graduates) | Clear the 4 sections of the CPA exam. |
| Invest around 5-7 years | Have 150 Credits (2nd year of Post Graduation) |
| Complete 16 exams across 4 levels | 1 Year of work experience, verified by a CPA |
| Get a CPA License |
| C.A. | US CPA |
|---|---|
| CA comprises 2 levels IPCC (intermediate) and Final Level. | CPA is a single level exam consisting of 4 sections, you can give it online & it consists of 4 testing windows a year. |
| CA has a subjective type exam pattern. Questions can range from simple to complex and manually writing the answer is required. | CPA has an objective type exam pattern. It consists of two types of questions, Multiple Choice (MCQs) and Simulations (objective type case studies). Each exam lasts 4 hours. |
| Primary emphasis is on calculations, memory and content retention. | The emphasis is on concept clarity, time management and practical ability to apply the concepts. |
| The CA date sheet is issued by ICAI and examinees need to attend the exam as per the schedule provided. | CPA exams are conducted around the year at a Prometric Center near you (present across all major Indian cities). You can schedule your exam at your convenience. |
Time, Money and Success Percentage
| Basis | C.A. | US CPA |
|---|---|---|
| Time | CA takes 5-7 years of your life to complete, depending on the number of attempts you take. | The time duration is only 1 year to 1.5 years. |
| Money | While pursuing CA candidates will spend upwards of 2.5 Lakhs including tuition and exam fee. | Comparatively CPA is costlier, students would spend 3.2 lakhs. |
| There is also a 3-year mandatory articleship period. | ||
| The complex structure of exams and low success rate can result in high opportunity cost spanning across many years | ||
| Success Percentage | Overall pass percentage for CA usually lies in single digits. | The global success rate of US CPA is more than 50%. |
| C.A. | US CPA |
|---|---|
| CAs are employed across multiple domains in various Indian businesses. | All publicly traded companies listed on the NYSE (New York Stock Exchange) or NASDAQ need to be audited by a CPA/firm |
| There is also a subset of CAs who find employment with major MNCs. | Most major corporations thus need CPAs for their Accounting & Finance functions. |
| While, a small portion of CAs are also placed abroad. | This means CPAs are employed in almost all the countries through the top tier corporations of that country as only the industry leads would be listed on NYSE. |
| India’s fast growing Outsourcing Industry adds to the number of jobs available for CPAs. |
Both CPAs & CAs command the same pay-scales. So, the return on investment in both courses is comparable in monetary terms. Freshers with no experience will find employment at 6-8 LPA for both the qualifications.
However, when you factor in the time invested to reach the said pay-scales, you will find US CPA is undoubtedly the wiser choice.
What Is Better?
While many factors play a part in deciding one’s career path, most of our decisions usually boil down to instinct and validation of our peers. Depending upon your goals and interests, what is more appropriate for you may vary. However, if we were to compare objectively, without any emotion involved, pursuing the CPA designation seems to be the better time investment, especially given the scope to conquer the international job market.
That’s how we see C.A. and US CPA through our objective and subjective perspective. And, we have listed down everything we think would help you pursue each of the 2 courses. What do you think about this? Tell us in the comments below.
