The Association of Chartered Certified Accountants is a U.K.-based organization that offers an international credential referred to as the ACCA. In contrast, the Uniform Certified Public Accountant (CPA) Examination was developed by the American Institute of Certified Public Accountants (AICPA) in partnership with the National Association of State Boards of Accountancy (NASBA).
To put it simply, the “ACCA” credential and the “CPA” credential denote a similar skill set, but the CPA is localized (by state in the U.S.) while the ACCA is a global credential.
Both credentials are highly respected and can open doors to a rewarding career in accounting. However, they serve different purposes, come with their own sets of exams and are recognized differently around the globe.
CPA: The CPA certification is unique to the United States. The exam is tailored specifically to U.S. GAAP and U.S. tax law, although it does also cover the International Financial Reporting Standards (IFRS). Reputationally, the CPA credential is far more common and widely recognized in the United States than ACCA.
ACCA: ACCA is a global qualification awarded by the UK-based Association of Chartered Certified Accountants. It boasts wide international recognition, especially in the Commonwealth countries, Europe and Asia. Like the CPA exam, the ACCA exam also covers IFRS. The tax law emphasis is international rather than U.S. focused.
CPA: The CPA is more formally rigorous in terms of prerequisites since it requires a significant amount of real-world experience prior to even being eligible to sit for the exam. In addition to 150 credit hours of relevant education, exam takers must have at least 2,000 hours of verified work experience under a licensed CPA.
ACCA: ACCA's examination structure is more extensive, comprising 13 papers, which are divided into three levels: Applied Knowledge, Applied Skills and Strategic Professional.
According to some sources, the ACCA education requirements are comparable to a bachelor’s or master’s degree in the U.S. Although the ACCA doesn’t have specific work experience requirements, there are some education requirements that are unique to the U.K. Specifically, exam takers must have three General Certificate of Secondary Education’s (GCSE) and two Advanced Level qualifications (A-levels) or equivalents.
An A-level is an area of study 16 to 18-year-olds pursue in what we would consider an upper-class high school that enables entrance into higher education in those subjects. Although there’s no equivalent for a GCSE in the States, it’s similar to a high school diploma or a GED. In the U.K., students have to take subject-specific exams to prove their proficiency in each subject.
Both CPA and ACCA prepare professionals for varied roles within the accounting and finance sector, but there are some differences in their primary focus areas.
CPA: Professionals with a CPA designation often find roles in public accounting firms, corporate accounting, tax consultation and auditing in the US. Their expertise in U.S. tax laws and GAAP makes them ideal candidates for organizations operating within or closely with the American market.
ACCA: ACCA professionals usually have a more international or global perspective, given the qualification's broad curriculum. They are versatile and can work in diverse roles, including financial accounting, management accounting, auditing and consultancy in regions where ACCA is highly recognized.
While both qualifications are challenging, the duration and nature of their difficulty vary.
CPA: The four CPA exams can technically be completed within a year or less. However, the content's depth, especially its focus on US-specific regulations and standards, can be daunting for those unfamiliar with the American system.
The education requirements and the real-world work experience can take a significant amount of time to accomplish.
ACCA: With 13 papers, the ACCA can take several years to complete. However, students might find that it offers a more gradual progression from basic to advanced concepts. There’s also more hand holding through the process, as the ACCA organization provides more resources and preparation assistance than the AICPA offers working professionals who are seeking their CPA accreditation.
Both CPA and ACCA are prestigious qualifications that can significantly boost an accountant's career. Most U.S.-based accountants will choose a CPA simply because it offers much broader career prospects in the country and the education and work-experience requirements are geared toward U.S. students and professionals.
If you’re looking for a skilled Phoenix-based CPA with the extensive work experience and knowledge to handle your business or personal accounting needs, don’t hesitate to call H&H Accounting Services at (480) 561-5805.
