CA VS MBA in Finance - Which is Better For Your Career?

By IIC Lakshya

05 Aug 2024

After being done with one's graduation, choosing in CA vs MBA in finance can be very tricky, especially when you’re not sure what career to take. Most of us get confused about what to choose when our priorities and interests remain a mess. Many people are interested in either a CA or MBA in finance as a career. But, we must select one that fulfills our criteria of Skill development and future goals of a primary profession. By discussing various aspects related to the course including career opportunities, skills needed, salary, etc, this article aims to help students decide whether an MBA in finance or CA is the best course for them.

CA vs MBA in Finance - Choosing a Career in Finance

When choosing between CA Course (Chartered Accountancy) and an MBA (Masters in Business Administration) in Finance there are several factors to consider. Both courses provide distinctive abilities, opportunities, and ideas as well as having a nice salary for each qualification. But, there are some varying factors between them which could help you understand their suitability concerning your needs.

Let's discuss and compare some of the main factors below:

Course Specializations

The course of CA is more specialized than an MBA. Auditing, taxation, and financial reporting are extensively taught. Unlike CA where a student goes deeper into auditing, taxation, and financial reporting among others, MBA courses cover several areas such as marketing, human resources, and finance.

Scope

A CA qualification offers you highly-demanded skills in Accounting and Finance. While in an MBA, one gains specialized and general skills that can be applied in various industries like Hotel management and entrepreneurship.

Skills

As a chartered accountant (CA), you will gain expertise in technical skills in both accounting and finance. You will also learn how to communicate complex information clearly and concisely. During your time as an MBA student though, the course will train you in leadership and team-building skills to equip you with effective problem-solving abilities and teamwork for influencing people.

Salary

CAs vs MBA salaries shouldn't be talked about much as both earn a good amount of money; nonetheless, CAs have a slight advantage in average earnings over MBAs. The income of a CA in India can start from Rs. 8.05 LPA compared to Rs. 7.64 LPA for someone with an MBA in Finance.

What is the Difference between CA and MBA in Finance?

There are some crucial distinctions between an MBA as well as a CA. Firstly an MBA is a Master's Degree in Business Administration while the CA is a specialist certification. Secondly, MBA students study business management while Chartered Accountants tend to research accounting and finance. Thirdly, the scope of an MBA is more comprehensive than that of a CA.

Here are some of the main distinguishing points in CA vs MBA in finance:

CA	MBA in Finance
Completing CA takes around 4 years. It also consists of internships or a mandatory training period	MBA normally takes two years to complete but some programs require having work experience before applying
The educational program is very specialized coupled with a concentration on accounting and finance	There are more electives available in this program with topics on human resources management, marketing, or strategy
In the CA program, you will learn about taxes, accounting, and financial statements plus various other required abilities appropriate to running any type of business	The coursework is more general and covers marketing, human resources, and operations management among other subjects. Among all others, this course ensures that one acquires all the knowledge about Business Administration and becomes capable of running any business regardless of its size
Becoming a CA student requires passing various levels of exams administered by the Institute of Chartered Accountants exams and one can become an accountant, tax specialist and auditor	Here one will also have a chance to specialize in fields such as finance or marketing.

Comparing the Salary of CA and MBA Professionals

Experience, area of specialization, and the domain in which they work are all critical factors influencing pay scale. Both graduates have a variety of job responsibilities, which entitles them to a wide range of pay.

Salary of a CA in India

Job Roles	Salary
Chartered Accountant	INR 7.39 LPA
Business Analyst	INR 6 LPA
Financial Planner	INR 8 LPA
Auditor	INR 7.77 LPA
Taxonomy Specialist	INR 8.1 LPA

Salary after MBA in India

Job Roles	Salary
Business Development Specialist	INR 6.3 LPA
Human Resource Manager	INR 7.02 LPA
Sales Manager	INR 4.33 LPA
Customer Relationship Management	INR 6.77 LPA
Marketing Manager	INR 7.01 LPA

CA or MBA in Finance - Which One Should You Choose?

Career aspirations determine whether one should opt for an MBA or a CA qualification. CAs focus on compliance and financial accounting, making them suitable for positions in corporate finance and accounting firms.

Unlike that, an MBA imparts more management and leadership skills across various sectors of the economy. Take into consideration personal likes, future job path, and long-term objectives as part of your decision process. Both CA and MBA qualifications are viable alternatives whether aiming for financial expertise or versatile business acumen, both CA and MBA qualifications offer pathways to success in the dynamic world of business.

Frequently Asked Questions (FAQs)

Is MBA tougher than CA?

CA is far more difficult compared to an MBA. However, an MBA is not as tough as a Chartered Accountancy course. For example, students studying CA will have to cover subjects like business environment, financial accounting, auditing, reporting and general management, and taxation among others.

Who earns more CA vs MBA in Finance?

A Chartered Accountant in India earns an average starting salary of Rs. 8.05 LPA while someone with an MBA in finance starts earning Rs. 7.64 LPA as an initial salary. One difference between the admissions criteria for a CA and those for an MBA (Finance) is that one has to write entrance exams for a CA only.

Can CA be done after an MBA?

The combination of these two qualifications (CA-MBA) provides individuals with the ability to impact organizations strategically yet remain adaptable to changing business environments; this investment into one’s professional development can be considered worthwhile.

How many years does it take to become a CA after doing an MBA?

Candidates pursuing postgraduate courses including MBAs or any other degrees usually require a minimum of 4 1⁄2 years from completion of the Postgraduate degree for completing the C.A course (This implies that you can directly register for the Intermediate Course without taking either Foundation or IPC).