CA vs CPA - Which is Better for Your Career?

21 Sep 2024

CA and CPA are two distinct career paths in accounting and finance, each offering unique advantages. Both qualifications attract a large number of students, but common questions arise when choosing between them: "Which is better, CA or CPA?" "What distinguishes CPA from CA?" "Which qualification holds more value?" To make an informed decision, it’s crucial to understand the key differences between these certifications and what they represent. This blog will guide you through the comparison of CA vs CPA, helping you choose the path that aligns best with your career goals. But first, let’s clarify what CA and CPA are.

What is CA?

A CA, or Chartered Accountant, stands as the golden standard of professional excellence in the fields of financing, accounting, and auditing. The title of CA is given to candidates who have undergone extensive training, education, and examination procedures carried out by the Institute of Chartered Accountants of India (ICAI), which is the regulatory body managing the exams and training about the accountancy profession in India. The importance of the Chartered Accountancy qualification in the Indian finance sector cannot be overstated.

What is CPA?

Certified Public Accountants or CPAs, are licensed by their state's board of accountancy after passing the Uniform CPA Exam, which is administered by the American Institute of Certified Public Accountants. These certified public accounting professionals are allowed to carry out audits and approve tax and regulatory documents.

What is the difference between CA and CPA?

If you are asking yourself, CA vs CPA, which is better, comparing the two might help you answer that. A CA professional has excellence in the fields of financing, accounting, and auditing. A CPA is administered by the American Institute of Certified Public Accountants. Below is a table that will help us to find the key differences between CA vs CPA:

Differentiators	CPA – Certified Public Accountant	CA – Chartered Accountant
Accounting Standards Followed	The US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS)	Indian Generally Accepted Accounting Principles (Indian GAAP)
Recognition	The USA and all other countries included	India and a few other countries like Australia, Bahrain, Canada, Djibouti, Dubai, Ireland, and the UK
Examination	4 exams of 4 hours each: Financial Accounting & Reporting Auditing & Attestation Regulation Business Environment & Concepts The exam includes MCQs and written and short task-based simulations.	3 levels to be cleared: Level 1 – Common Proficiency Test (CPT) Level 2 – Integrated Professional Competence Course Level 3 – CA Final Level 1 is an objective test on Fundamentals of Accounting, Mercantile Laws, General Economics, and Quantitative Aptitude. Level 2 includes 7 papers divided into 2 groups based on theory and practical. Level 3 includes 8 papers arranged in a way similar to Level 2 on more advanced topics.
Average Passing Percentage	45%	5%
Costs	Much higher compared to the CA exams.	On average, 3-4 times less costly than CPA
Level of Difficulty	Hard	Very Hard
Average Duration	1 year	4 to 5 years minimum
Compensation (Note: This largely depends on the geography and the total experience)	For a fresher: INR 8-10 lakhs per year	For a fresher: INR 7-8 lakhs per year
Opportunities	Relates to roles as a Strategic Business Advisor.	Relates to roles in specialized areas of Accounting such as Auditing, Taxation, Corporate Finance, and Corporate Law.
When should you opt for it?	Working in the US or US corporations/companies publicly traded in the United States.	For plans of working in India or non-US corporations or companies that are not publicly traded in the United States.

Is CA Better than CPA?

If you have decided to make a career in accounting, another question that you might be thinking about is, should I go for CA or CPA? You already know what a CA and CPA are, Now let's compare both.

Aspect	CA	CPA
Designation	Chartered Accountant	Certified Public Accountant
Credentialing Body	Various national accounting bodies (e.g., ICAI in India)	American Institute of Certified Public Accountants (AICPA)
Geographic Focus	Global (various countries offer CA qualifications)	Primarily U.S., but recognized internationally
Exam Structure	Varies by country; typically multiple exams covering accounting, auditing, taxation, and business laws	Uniform CPA Exam consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG)
Focus Areas	Generally includes auditing, accounting, taxation, financial management, and corporate laws	Covers auditing, taxation, financial accounting and reporting, and business concepts
Professional Scope	Often involved in auditing, taxation, financial reporting, advisory, and consultancy roles	Diverse roles including auditing, tax preparation and planning, consulting, financial planning, and forensic accounting
Regulatory Body	Regulated by national accounting bodies; subject to local laws and regulations	Regulated by state boards of accountancy in the U.S.; subject to the AICPA Code of Professional Conduct
Continuing Education	Typically requires ongoing professional development to maintain licensure	Requires continuing professional education (CPE) credits to maintain licensure
Industry Preference	Common in countries where the CA qualification is prevalent; widely recognized in banking, finance, and corporate sectors	Predominant in the United States and increasingly recognized globally in multinational corporations, public accounting firms, and government agencies
Time to Qualify	Generally requires several years of study and practical training (e.g., 3-5 years or more)	Requires meeting education requirements (often a bachelor's degree) and passing the CPA Exam (can vary in time depending on individual study pace)

CA vs CPA Salary

Here is a look at CA vs CPA salary. In India, chartered accountants (CAs) usually earn high salaries, particularly those with experience and expertise in areas such as auditing, taxation, financials, and consulting. According to various sources, the average salary for a chartered accountant in India can range from INR 6 lakhs to INR 20 lakhs per annum.

Certified Public Accountants (CPAs) are not as common in India as CAs; however, they are still in demand in specific sectors and international companies, specifically those that incorporate into the United States or have significant international operations. Certified public accountants with experience and expertise in fields such as auditing, taxation, financial reporting, and advisory services can regulate competitive salaries. The average salary for a CPA in India might vary from INR 5 lakhs to INR 15 lakhs per annum.

Conclusion

Both CA and CPA are esteemed qualifications with distinct focuses and benefits. While CA is a perfect fit for those interested in accounting and auditing in India, CPA is meant for finance enthusiasts with a global perspective. Remember, whichever course you choose between CPA vs. CA, it should align with your career goals, aspirations, and interest areas for long-term professional success.

Frequently Asked Questions (FAQs)

Which earns more, CA or CPA?

It is difficult to determine which of these careers offers a higher salary, as the salary of a CA or CPA can differ based on several factors. However, generally, CAs tend to earn more than CPAs in India.

Is CPA harder than CA?

CPA and CA both are similarly difficult however Certified Public Accountant is somewhat simpler to pass due to the resilience in writing the exam compared to CA. These professional qualifications of Indian CA US CPA reasonably vary in a couple of points like high-quality framework and duration.

Is CPA valuable in India?

Yes. Pursuing a CPA is worth it in India as you can get job opportunities in areas like accounting, finance, and related fields, both in India and the US.

Is CA and CPA a good combination?

Pursuing a CPA credential after obtaining an Indian CA qualification is highly beneficial, especially since many multinational corporations seek CPAs.