ACCA vs CPA: Which Accounting Qualification Is Right for You?
Published on: May 5, 2025
Among the most sought-after international certifications in the commerce field, ACCA (Association of Chartered Certified Accountants) and CPA (Certified Public Accountant) are prominent choices, each offering unique advantages and global recognition.
ACCA is a globally recognized qualification, particularly popular in the UK, Europe, the Middle East, and the Asia-Pacific regions. It provides a broad understanding of accounting principles, finance management, and business strategy, making it a versatile option for professionals aiming for diverse roles in multinational organizations.
On the other hand, CPA is the gold standard for accounting professionals in the United States. Governed by the American Institute of Certified Public Accountants (AICPA), it emphasizes US GAAP (Generally Accepted Accounting Principles), taxation, and regulations relevant to the US market. CPAs are highly regarded for their expertise in auditing, financial reporting, and advisory roles, particularly within the US.
Choosing between ACCA and CPA can be a pivotal decision, and the right choice depends on your career aspirations, geographical preferences, and areas of interest.
ACCA
The ACCA is a globally recognized professional body for accountants specializing in financial reporting, management, audit, and international taxation. It is highly valued in the UK, Europe, the Middle East, and the Asia-Pacific regions. Since ACCA follows IFRS (International Financial Reporting Standards), it’s beneficial for professionals aiming to work in multinational companies.
Career Opportunities
ACCA members often work in:
I . Audit & Assurance
ii. Financial Management
iii. Tax Advisory
IV. Consulting
v. Corporate Finance
The job positions of an ACCA include :
1. Auditor
2. Chief Financial Auditor
3. Tax Consultant
4. Financial analyst
Exam Structure
The ACCA consists of 13 exams (if no exemptions apply), divided into three levels:
- Applied Knowledge (3 exams)
- Applied Skills (6 exams)
- Strategic Professional (4 exams) including optional papers.
Additionally, candidates must complete an Ethics and Professional Skills module and 3 years of relevant work experience.
The papers of respective levels are as follows :
CPA
A Certified Public Accountant is a professional administered by the American Institute of Certified Public Accountants (AICPA) who specialises in various areas of accounting, including auditing, taxation, and financial reporting. It is the Chartered Accountancy course of the USA. The CPA is a United States-focused certification and follows U.S. Generally Accepted Accounting Principles (GAAP) and tax regulations. It is essential for professionals who want to work in:
- Public Accounting (Big 4 firms)
- Corporate Accounting (U.S. companies)
- Tax Compliance & Advisory
- SEC Reporting & Financial Analysis
US GAAP and Regulations
US GAAP (Generally Accepted Accounting Principles) is the accounting framework used in the United States for preparing financial statements. It consists of principles, standards, and rules set by various regulatory bodies to ensure consistency, transparency, and comparability of financial reporting.
Differences Between US GAAP and IFRS
While US GAAP is rule-based, International Financial Reporting Standards (IFRS) are principle-based. This means:
- US GAAP often provides detailed, industry-specific rules.
- IFRS focuses on overarching principles and allows more judgment in application.
Career Opportunities
CPAs have strong career prospects in:
- Audit & Assurance Services
- Taxation
- Financial Reporting
- Forensic Accounting
- Consulting & Advisory
Many senior finance roles in the United States, such as CFO or Controller, prefer or require a CPA license.
Exam Structure
The CPA course consists of four main sections:
A. Core papers (All mandatory)
1. Auditing and Attestation (AUD)
2. Financial Accounting and Reporting (FAR)
3. Taxation and Regulation (REG)
B. Discipline Papers (Any 1) :
1. Information Systems and Controls (ISC)
2. Tax Compliance and Planning (TCP)
3. Business Analysis and Reporting (BAR)
Candidates must complete 150 credit hours of education (typically a bachelor’s + extra credits) and 1-2 years of work experience (varies by state).
