CPA vs. MBA - Pros & Cons for Finance Professionals
Certified Public Accountant and Master of Business Administration qualifications are two of the most common credentials finance professionals hold. Both qualifications require you to hold an undergraduate degree, but they're not created equally. This article will help you decide which you should pursue.
A CPA is Recognized as the Gold Standard in Accounting
If you want to be an accountant, becoming a CPA is an obvious choice. Most companies insist that their accountants have this qualification, and you'll need one to open your own accounting firm. While studying for a designation CPA, you'll learn how to audit and review financial statements, prepare and file individual and business tax returns, and more.
What is a CPA if it's not a way to become an accountant? For some people, it's also a path to becoming an internal or external auditor, a tax professional, a chief financial officer, a financial analyst, or a financial controller.
An MBA Will Give You Scope to Grow
Are you unsure what your career path holds or are you interested in business? Then an MBA may be for you. With lessons in economics and marketing, MBAs provide a more comprehensive understanding of the business world than the CPA does. While this can be advantageous for accountants, especially those dealing with global finances, it's particularly useful for finance professionals interested in pursuing consulting or management roles in financial services now or in the future. Many securities analysts, investment bankers, and venture capitalists also hold MBAs.
Finance professions also account for just ten percent of all jobs occupied by MBA holders. If you think you may want to change careers later in life, an MBA could hold you in good stead.
The Qualifications Appeal to Different Interests
While your career aspirations are important to consider, don't disregard your own interests. If you live and breathe finance, the topics you'll cover on the path toward a CPA qualification may suit you best. But if you're intrigued to learn about other topics, including economics, marketing, quantitative analysis, and organizational behaviour, then you may appreciate the diversity of an MBA.
Don't be afraid to trust your instincts here. The information you'll learn on the path to gaining these qualifications will give you an insight into the careers available to you once you're done. Considering what appeals most to you should help you decide on the right financial career for you.
The Qualifications Suit Professionals at Different Stages of Their Careers
How to become a CPA or MBA holder is also important to consider. The best MBA programs in the country require candidates to have several years of workplace experience under their belts. If you are a new graduate, you may prefer to bide your time. In contrast, many candidates can apply for a CPA once they've completed their undergraduate degrees, providing they've covered specific topics. In fact, you may find passing this exam easier straight out of university, as the knowledge about accounting you've gained will be fresh in your mind.
Demand for Finance Professionals with CPAs is Growing More Rapidly
It's also worth noting that demand for CPAs in the finance sector grew six percent from 2014 to 2015, according to the Journal of Accounting. In contrast, demand for people with MBAs in the finance sector grew 2.5 percent. While both qualifications are seeing growing popularity, CPAs have an edge that is worth considering.
If you're still not sure which qualification would suit you best, why not do both? You could always pursue an MBA and decide to take the CPA exam after you're done. Holding both qualifications will certainly give you a competitive advantage as you pursue your finance career.