CPA vs MBA: Which is Better? Cost, Salary, Jobs

A CPA will often take 18 months, but can often be completed in just one year, as well. The University of Kansas has engaged Everspring, a leading provider of education and technology services, to support select aspects of program delivery. A CPA can still be an asset for a wide variety of companies that require an accountant or financial analysis. As a CPA, you also have the option to work as a consultant, serving the needs of several employers as issues arise.

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They also estimate the costs of business operation and ensure that taxes are paid, processes are optimized, and that an organization understands the impact of its financial transactions. In the 1970s, however, it transferred its responsibility for setting generally accepted accounting principles (GAAP) to the newly formed Financial Accounting Standards Board (FASB). Before passage of the Sarbanes-Oxley law, AICPA standards in these areas were considered “generally accepted” for all CPA practitioners. The AICPA and its predecessors date back to 1887, when the American Association of Public Accountants (AAPA) was formed. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice.

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For a more specific comparison, you can look at the iMBA and iMSM (Master of Science in Management) programmes at the University of Illinois Urbana-Champaign’s Gies College of Business, both offered on Coursera. Although individual programmes vary, this can give you insight into the differences you might see between programmes. If you plan to go into an upper management position, having both can be very helpful. Students planning on getting a finance-focused MBA often get the most out of also earning their CPA.

Some states require that a CPA takes 80 hours of CPE every two years, although other locations may have different rules. CPE can cost an average of $2,000 per year, however that can vary based on how many hours your state requires. Some schools offer an executive MBA program that is tailored around those who work.

Students who have an interest in pursuing a career in the financial industry may wonder whether they should earn their master’s degree in accounting vs. an MBA. Both programs focus heavily on financial knowledge and can lead to many similar careers, including roles in the C-suite. Accounting is a more specific degree, with a strong focus on preparing students for the certified public accountant (CPA) exam, while an MBA usually offers the choice of multiple concentrations. Only around half of first-time test takers, most of whom have more college studies than required for a bachelor’s degree, earn a passing score. However, overcoming the challenges of the CPA exam is possible with plenty of preparation and education.

A certified public accountant, for example, might undertake a long and lucrative career at a publicly traded Fortune 100 company. Or they might choose to open their own practice in a small town serving small businesses and individuals. In the United States, the CPA is a license to provide accounting services to the public. Additionally, almost every state (49 out of 50) has passed mobility laws to allow CPAs from other states to practice in their state. While the AICPA set the professional standards for the professional conduct of accountants, it plays no role in setting the standards for financial accounting.

However, the average starting salary for an MBA graduate is $73,417 while the average starting salary for a CPA is $60,697. Depending upon the school you attend, you can pursue a general or specialized MBA track. Common specialized tracks include finance, operations, marketing, and entrepreneurship. To complete the licensing requirements, you will need to take an ethics exam provided by the American Institute of Certified Public Accountants.

Certified Public Accountants

Pursue your degree from anywhere with online classes while gaining the knowledge and skills you need to advance your career. Whilst MBA curricula are often more general, business MSc programmes may specialise in finance, management, accounting, marketing, or other professional areas within corporate organisations. The biggest difference between MBA and MSc programmes is who the programme is designed for.

• And surprisingly, to the benefit of a candidate, many states consider an MBA and your undergraduate degree toward that total.
• A CPA is a designation earned by passing an exam, while a masters is an academic degree.
• Each path offers unique opportunities that can shape your career in different ways.
• An accounting degree focuses primarily on the accounting field, while students in an MBA program can choose from a variety of concentrations inside and outside of the financial industry.
• According to the Bureau of Labor Statistics (BLS), accountants and auditors earn on average $71,550 annually.
• However, it should be noted that the fees for an MBA degree vary across colleges based on their location, program, faculties, and various other factors.

Time commitments range from 18 months to four years, with part-time and executive students needing to balance work and study. This guide cuts through the complexity, offering clear insights into both options. Below, I’ll highlight the key differences, career paths, and benefits, helping you decide which aligns best with your career goals. Whether you’re aiming for the boardroom or the accounting firm, making the right choice now can set the stage for a fulfilling and successful career. If you are passionate about accounting and finance and want to become an accountant, then becoming a CPA is a good opportunity to demonstrate your expertise.

Each path offers unique opportunities that can shape your career in different ways. The right choice depends on what excites you, where you envision your future, and how you want to leave your mark. Both master’s in accounting and MBA degrees can lead to top executive-level jobs. The takeaway for prospective students should be that well-paying careers are open to you regardless of whether you choose an MBA or CPA program. However, the AICPA retains its considerable standards setting, ethics enforcement and firm practice quality monitoring roles for the majority of practicing CPAs, who serve privately held business and individuals. The American Institute of Certified Public Accountants (AICPA) is the national professional organization for Certified Public Accountants (CPAs) in the United States.

This was one of my main considerations when deciding whether to attend business school or focus on a CPA designation. For many business professionals, going back to school for a graduate degree seems like a good way to advance their careers. If you already have a Bachelor of Science in Accounting, you could choose to earn a Master of Business Administration (MBA), whereas others might decide to become a certified public account (CPA).

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However, this salary discrepancy is likely tied to the fact that MBA recipients typically have already spent a few years in the workforce, whilst business masters recipients usually have less experience (if any). Any time you pursue a new time and financial commitment, it’s reasonable to want to understand how your options align with your goals. According to the Bureau of Labor Statistics (BLS), accountants and auditors earn on average $71,550 annually. However, CPAs with more experience have a greater earning potential, and those who have 20 years of experience could earn up to $150,000 annually. It’s even possible to fulfill some of the credit hour requirements for your CPA while earning your MBA.

• Potential careers could include Chief Financial Officer (CFO), auditor, tax advisor or forensic accountant.
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However, a CPA program will require an additional two semesters of undergraduate work, which will cost more. An MBA or Master of Business Administration is a longer program covering a wider range of courses. It will provide you with a broad-based of financial knowledge, but will also provide even more. Whether transitioning from public cpa vs mba salary accounting to corporate leadership or exploring entrepreneurial ventures, an MBA provides the tools needed to navigate complex business challenges and achieve long-term success. If students are looking for broader career options that might extend beyond finance, an MBA may be a wise path to choose.

Often college students find it difficult to choose between a CPA license or an MBA degree. On one hand, CPA provides global recognition in the field of accountancy, while an MBA degree prepares a candidate for the overall business world. In deciding whether an MBA or MSc is right for you, consider the type of business experience you’ve already built up and revisit your career goals.

When considering a CPA or MBA, one advantage of an online MBA program is its flexibility and affordability. Particularly with an online MBA, you can complete your coursework at times that fit into your daily life. Also, because an MBA covers so many core business principles, you are better able to run your own company after getting your degree. As an MBA graduate, you are equipped to handle everything from budgeting and obtaining seed money for start-ups to marketing and product or service roll-out. Keep in mind that during the course of an MBA program, you will take many of the courses you’ll need to take to prepare you for the CPA Exams.

This certification equips professionals for a variety of specialized roles across different sectors. I no longer work in accounting but am an expert on how to help other accounting professionals become CPAs. The CPA certification is a highly respected professional designation that signifies expertise in accounting, auditing, tax, and business law. The CPA certification aims to ensure that accounting professionals possess the necessary knowledge, skills, and ethical standards to protect the public interest. CPAs are recognized for their role in enhancing the reliability of financial statements, which is crucial for investors, regulators, and the overall functioning of the economy. An MBA is a prestigious academic degree designed to equip students with a deep understanding of business leadership and management principles.

While CPAs may have a higher starting median salary, MBAs often see rapid salary growth in various industries, reflecting the value of their broad business skills and leadership capabilities. MBA programs, known for their broad business education and leadership training, pave the way for graduates to enter high-paying roles across various sectors. According to industry statistics, the average salary for MBA holders is around $97,000, with the potential for significant growth.