A Certified Public Accountant (CPA) is different from a Chartered Accountant (CA), unlike what most people think. However, how different are the two accounting positions in reality? Read on for more information about the two accounting professions.
What is a Certified Public Accountant (CPA)?
A certified public accountant (CPA) is a general accountant with extensive experience. They have a degree in accounting, business, or finance. CPAs also underwent a rigorous curriculum and accounting certification regulated by an accounting authority.
CPAs are trusted financial counsellors and accounting experts who assist clients in identifying their financial objectives and developing methods to make those goals a reality. CPAs work in a wide range of industries, from start-ups to large enterprises.
A CPA accounting expert has a variety of accounting and financial abilities compared to an undergraduate accountant. They devote more time to company management activities such as product costing and production, marketing, financial planning, and financial analysis and guidance in general.
What is a Chartered Accountant (CA)?
A Chartered Accountant (CA) is a tax and accounting expert who works in big corporations, professional industries, and business enterprises.
Chartered Accountants are always prepared to deal with sophisticated accounting difficulties, ranging from taxation to thorough audits. They also keep regulators pleased by ensuring that businesses follow financial rules and regulations.
CAs must complete an accounting or finance degree and a Graduate Diploma in Chartered Accounting to receive their designation. A Chartered Accountant must also complete three years of supervised employment, generally under the supervision of a competent chartered accountant.
CPA vs CA: Which is a Better Career Track?
Neither accounting certification is superior to the other, but depending on the type of job you want to pursue in the future, one may be better suited to your objectives.
It is crucial to think about your abilities and where you envision yourself in five to ten years when considering whether to seek a CPA or CA certification. In your dream job, what would you be doing?
A CA may be the best career choice if you are more detail-oriented and enjoy tackling complex financial problems. A CPA may be more your style if you anticipate advancing into management.
CA vs CPA: Which One is Easier?
It is all up to you. A soon-to-be chartered accountant will continue their education at university before beginning full-time coaching. Some students may find the coursework and associated requirements challenging. There is also the ICAEW ACA that is comparable to a Master’s Degree in the UK. Nevertheless, statistics show that only 5% of CA exam takers pass compared to the 45% of those that take the CPA exam.
What are the Career Opportunities for Each Accounting Track?
The CPA is an accounting certification that will open up a world of possibilities. You can work in various accounting industries after earning your CPA certification. The opportunities include International Accounting, Internal & External Auditing, Consulting Services, Forensic Accounting, Assurance Services, Taxation & Financial Planning, etc. Being a CPA opens the best job opportunities in many nations since the title entails an international reputation.
Similarly, having a CA designation will provide you with many alternatives in dedicated areas of accounting. It can include auditing, taxation, corporate finance, and corporate law. The CA title provides you with the option of working for a major accounting company or starting your independent practice after earning your Chartered Accounting certification.
CA vs CPA: How does the salary for the two tracks compare?
The average annual income for CPA professionals in Singapore is $92,000. If you have more than ten years of experience in this industry, you will likely move to another employer. Your salary can be twice, if not thrice, that figure if you have held the position for more than a decade or two.
On the other hand, a Chartered Accountant makes an average of $82,000 per year. Evaluation and Management Auditing are two skills connected with high compensation for this career. Some of the other available positions are Budget Management, Financial Analysis, Strategic Accounts, and Financial Advisor. Furthermore, the average person in this position has less than ten years of experience. The pay takes heavy influence from the experiences of an Accountant.
The ICAEW ACA
There are three levels of ACA exams: certificate level, professional level, and advanced level.
You must finish all fifteen ICAEW modules over these three levels. However, you may be eligible for certain exemptions if you have completed some prior study. It applies to both the certificate and professional level modules.
Students can take the tests online. It includes various topics encompassing accounting, finance, and business.
There is a case study at the end of the exam. The case study introduces you to a complicated business scenario. It will challenge you to solve problems, uncover ethical dilemmas, and offer efficient solutions. The purpose is to test all of the information gathered during your studies.
How do you become a Chartered Accountant?
To become an ICAEW Chartered Accountant, you must finish the ACA. It is a prestigious professional certification that requires students to complete at least three years of on-the-job training and passes a series of tests. You can start by completing the ICAEW Certificate in Finance, Accounting and Business (ICAEW CFAB), which consists of the first six modules of the ACA.
How Does the Structure of the ACA Look?
The ACA has four components that give students a mix of finance knowledge, accounting abilities, and real-world company experience.
They are as follows:
- Four hundred fifty days of on-the-job training — provides crucial insight into the reality of a career as a chartered accountant.
- Financial management, legal, assurance, and corporate strategy are only a few topics covered in the 15 test modules.
- Professional development — equipping you to deal effectively with various scenarios you may face during your career.
- Ethics and professional scepticism –– equipping you with the ability to operate under pressure while remaining confident in your conclusions.
The ICAEW offers a chartered accountant course and certification that demonstrates a comprehensive understanding of finance, accounting, and business. Businesses across the world recognise the Chartered Accountant training. Due to this recognition, many of their members hold powerful positions worldwide. Visit their website if you have inquiries and more information.