CA vs CPA: Key Differences and Which is Better

Both CA and CPA are recognized and substantially respected credentials. Commerce graduates, especially those interested in various types of accounting, are often inclined to pursue specialized qualifications like CA or CPA to differentiate themselves from their peers. They can choose to do any certification, CA vs CPA for better career prospects. 

This article aims to inform you about the difference between CA and CPA. It will include a discussion on CA vs CPA salary, eligibility, duration, exam structure, and many more to help you make a wise decision.

CA versus CPA: An Overview

Deciding between CA versus CPA? Understand what each qualification offers and how they align with your career goals. No doubt, both certifications open doors to lucrative careers but they differ significantly in terms of scope, recognition, and focus. So let us first begin by understanding what is CA and what is CPA.

What is CA?

Chartered Accountant (CA) is a prestigious qualification for commerce students. It offers financial expertise in auditing, taxation, and regulatory compliance, making it ideal for professionals in public accounting. It is geographically limited due to regional accounting standards. The CA qualification takes around 5 years and involves three stages: CA foundation, Intermediate, and CA Final. Chartered Accountants are regulated by the Institute of Chartered Accountants of India (ICAI), and associate members can add the prefix CA to their names.

What is CPA?

Certified Public Accountants (CPAs) are professionals responsible for public accounting duties, including tax, accounting, and financial planning. They ensure financial accuracy and compliance. Their responsibility is to examine financial statements for mismatches and stay updated on tax laws to guide complex decisions. Their dedication to ethical standards sets them apart as pillars of trust in the financial world. The CPA distinction is highly sought after by accounting professionals seeking global career development.

Chartered Accountant vs Certified Public Accountant

The table below briefly explains the key differences between Chartered Accountant vs Certified Public Accountant.

Now let us get into the detailed information of the comparison between Chartered Accountant vs CPA for your better understanding. It will help you make a wise decision as the career path you choose directly impacts your career trajectory throughout your life.

What is the Difference Between CA and CPA?

When considering a career in accounting, many professionals face the decision of choosing between Chartered Accountant vs CPA. They both seem similar to people but differ in many ways. Let us discuss the CA and CPA difference in detail so that you can wisely decide which course to opt for, CPA or CA which is better.

Eligibility Criteria

One major CA and CPA difference is the eligibility criteria. The CA eligibility criteria for the foundation level is 10+2. So, apply four months before your exam. For the CA intermediate level, you must have a bachelor’s degree, or post-graduation (Direct Entry) and cleared foundation level.

The CPA eligibility criteria require applicants to have a bachelor’s degree in accounting or a related field from an accredited institution. Along with 120 credit hours in accounting, auditing, taxation, and business law. A master’s degree in accounting or a related field can also be considered. According to the Indian education system, a bachelor’s degree with one year of post-graduation experience is required as CPA is highly recognized in the US.

Program Completion Requirements

For CA, clear all three levels conducted at specified intervals. Then complete 3 years of compulsory practical training under a practicing Chartered Accountant.

However, to gain CPA certification, you must pass all 3 exams, Financial Accounting and Reporting (FAR), Auditing and Attestation (AUD), and Regulation (REG). Alon with one out of three discipline sections: Business Analysis & Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP) within 18 months. After that, it is a must to gain a year or two’s experience under any licensed CPA Professional. 

So, understanding the CA and CPA difference helps in fulfilling the course completion requirements to easily gain the certifications. 

Exam Structure

The exam structure and pattern differ according to the countries divided into multiple levels and papers. The difference between a chartered accountant and CPA lies mainly in the certification requirements, recognition, and exam structure. 

CPA exams are divided into 4 sections including Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). All the CPA exams are in a computer-based format. It allows flexible scheduling, as you can choose exam dates within the designated testing windows accordingly.

On the other hand, CA exams are divided into 3 sections: Foundation Level, Intermediate Level, and CA Final. The exam is generally paper-based containing objective as well as subjective type questions.

Program Costs

If we examine the cost difference between chartered accountant and CPA, then let us discuss them one by one. 

CA Program Costs

The CA Foundation Course costs around ₹11,300. It includes registration, exam forms, and additional charges if any. The CA Intermediate Course costs around ₹20,000 and the CA Final Course doubles. So, the total cost for the CA course ranges from ₹100,000 to ₹200,000.

CPA Program Costs

The CPA application fee in the U.S. varies depending on the state board. So, the application fee ranges from ₹3,600 to ₹14,500. Moreover, the examination fee is ₹14,100 per section. 

The registration fee for CPA depends on the number of sections taken and for the ethics exam the fee costs between ₹10,900 to ₹14,500 in states requiring licensure. 

You also need to pay an annual fee for obtaining and maintaining a CPA license which also varies by state, ranging from ₹3,600 to ₹36,000. Moreover, they need to complete their Continuing Professional Education (CPE) annually to keep their license active which costs ₹60,000 to ₹3,75,000 per year. Therefore the total average cost for completing the CPA course adds up to ₹3.5 to ₹4 lakhs.

CPA vs CA Salary Prospects

CPA Professionals earn higher salaries because of their expertise in taxation, auditing, and financial analysis. CPA salary varies depending on the region, experience, and industry. For example, in the United States, a CPA professional has the potential to earn an annual income ranging from $50,000 to $125,000  or more, depending on the level of seniority.

On the other hand, Chartered Accountants are highly respected in the finance and accounting fields. The salaries they are offered by the employers reflect the level of expertise and skill a CA upholds. The CA  salary compensation in India varies depending on the experience, region, and employer. Initially, CAs earning potential ranges between INR 5 to 10 lakhs per year. As they gain experience and expertise the salary package of the CAs also increases.

Hence, CPA vs CA Salary is the primary factor to be considered when deciding between a chartered accountant vs CPA.

Career Opportunities

Both qualifications lead to rewarding career opportunities so the choice of career is yours. The path you choose depends on your interests and goals. However, CPA vs CA leads to different career paths. 

CPA’s are more inclined to opportunities in public accounting and corporate finance. CPA Job opportunities also lie in specializing in other key areas like forensic accounting, information technology auditing, or personal financial planning while CAs have a stronger presence in auditing, taxation, and financial management.

While CA vs CPA both focus heavily on public accounting, financial reporting, and taxation, CA vs CMA has a distinct focus on cost management, business analysis, and financial planning. If your career goals are aligned with these areas, CMA might be worth considering.

CPA or CA Which is Better?

The choice of pursuing a qualification between CPA or CA depends on factors like your career goals, geographical preferences, and personal interests in the accounting field. For individuals who want to work in multinational corporations, US GAAP, or countries that follow International Financial Reporting Standards (IFRS), a CPA qualification is more suitable. Moreover, it is also suitable for those based in the US or Commonwealth countries offering significant advantages.

If we are considering factors, then geographic location and mobility are also important. A CPA qualification provides flexibility and consumes less time to complete in comparison to a CA course. It demands longer commitments and exam schedules are also structured. Apart from location, the cost of the course should be evaluated. The CPA course may be more expensive, especially when adding the education requirements compared to CA, but it takes more time to complete, and you can end up paying more than expected.

Before choosing any qualification out of CA or CPA, consider where your interest in specific accounting fields lies. If you are interested in international financial management, strategic business roles, or corporate law, a CA qualification will be more suitable. However, if you are interested in American corporate finance, international taxation, or regulatory compliance in the U.S., your CPA qualification will be more aligned with your interests.

You must also consider prospects and technological adaptation as both CPA and CA are rewarding but with different focuses. Lastly, your personal circumstances and know the actual difference between chartered accountant and CPA when selecting a qualification. Both have their unique strengths and specializations. Therefore, make sure the right choice aligns with your career goals, financial situation, and long-term aspirations in the accounting field.

Check out our detailed comparison of ACCA vs CA for an alternative certification in accounting.

Bottom Line

The Chartered Accountant (CA) and Certified Public Accountant (CPA) credentials offer career advancement opportunities in finance and accounting. CA is valuable in India and certain regions, while CPA opens doors to global opportunities, particularly in the United States. When choosing between CA and CPA, consider your career objectives, desired work locations, and interests in specific accounting practices. Both qualifications are respected and can lead to rewarding careers in the dynamic field of accounting.

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