Most of the business firms prefer hiring chartered accountants or CPA to manage their financial affairs. As the name suggests, chartered accountants or CPA are professionally trained accountants and qualified professionals, who assist the businessmen in decision-making on a day to day basis. With their ability to analyze various financial data and information, they provide an easy way to decision-makers. Thus, there has been a steady rise in the number of CPA across the UK over the past few years. However, before hiring any professional accountant, it is necessary to understand the differences between CPA and CFA.
The difference between CPA and CFA is that the level of chartered accountants is universally recognized all around the globe with great relevance in UK and Middle Eastern regions while the certified public accountant is mandatory for a position in the united states of America. In general, the requirements to become a chartered accountant depend on educational qualification, work experience and practical exams. Generally, the exams designed for CPA present two sections: Financial Accounts and Taxation. In order to pass these exams, you should have strong knowledge of financial accounting principles. On the other hand, to pass the tax section exam, you should have significant tax background, as most CPA perform audits of tax returns.
In addition to this major difference, there is also a major difference between a chartered accountant and a certified accountant. As the name suggests, chartered accountants are self-employed professionals while certified accountants are employed by a registered firm or organization. If you choose to become a chartered accountant, you will be paid on a contract basis, which means that you have to prepare reports for a certain period of time, depending on your client. The reports that you will produce for your clients are generally related to the current business situation, market trends and so on. Certified accountants on the other hand, will receive their payments directly from the company they work for.
Apart from these major differences, there are also some less important differences between a chartered accountant and a certified accountant. In terms of education and training, most accountants will get an associate’s degree followed by a two-year post graduate diploma or a four-year bachelor’s degree. On the other hand, to become a chartered accountant, you will only need one year of general accountancy experience. In addition to this, while most accountants will require additional internship experience, a chartered accountant can also obtain their certification without any additional internships. All these reasons mean that when considering how to become a chartered accountant, it is advisable to compare the certificate or degree received from an institution of higher learning with the experience requirements and pay of a chartered accountant.
After becoming a chartered accountant, many people choose to go on to earn a Master of Accountancy (MBA). This is a designation that signifies that you have completed your undergraduate degree and have been professionally certified. The qualifications and requirements for this designation vary from state to state. When applying for your MBA, please make sure to check the MBA entrance requirements and the accounting exam score requirements of each individual state.
The examination for the MBA will consist of a set of multiple-choice questions that cover business law, taxation, business mathematics and accounting. Some states do not require the completion of this exam as a condition of certification; however, it is recommended that you enroll in a course that includes this subject area. After completing your bachelor’s degree, you may wish to take the MCITP exam for the Professional Accounting Practices Certification (PAPAC) and/or Certified Chartered Accountant (CCA). While these two exams are not required for becoming chartered accountants, the CCA tends to be more highly regarded, so if you are interested in becoming one, it would be better to take the CFA exam.