When students are starting out with their studies, they will hear about many different licensures and degrees. It can be a bit confusing, especially when you are just trying to make it through your undergraduate Bachelor’s degree. Many will assume that going to MBA route is the key to an impressive resume, while others will try to look for an easier route. Of course, there is no right way; it will really depend on what your objectives are.

What is a CPA?

CPA stands for Certified Public Accountant. A CPA is someone who has not only acquired an Accountancy degree but has also gone the extra mile to earn their CPA license. This license is US-based and is provided by the American Institute of Certified Public Accountants (AICPA.) In order to qualify, they first needed to meet the 150 College Credit requirement, the work experience requirement and then sit for the CPA exam. This will be expanded upon below.

What is an MBA?

An MBA is a Master’s of Business Administration. It is a type of Master’s degree (MA) that focusses on managerial and business related topics. As with basic Bachelor’s degrees (BAs) and Bachelor of Science (BSc) degrees, a person can take a specialization. For accountants, this would be an MBA in Accounting. Depending on the country, it either follows a four-year Bachelor’s degree, like in the US, or a three-year Bachelor’s degree, or and Honor’s degree. Therefore, a MA in Accounting and an MBA Accounting both award Master’s degrees, but the coursework for the MBA will be more business-focused. It is important to note that most MBAs are not related to accounting, but to management. Most accounting MBA programs meet the educational requirements for CPA licensure, but this should be confirmed beforehand.

What is a MAcc?

A MAcc is a Master’s in Accounting. Many students take it after completing their Bachelor’s in Accounting to complete their 150-credit hour requirements to sit the CPA exam. It is more technical and accountancy-focused than the MBA, and goes into more depth of what was covered in a BA of Accountancy.

What are the main Differences between a CPA and an MBA?

CPAMBAMAcc
LicenseDegreeDegree
Accountancy-focusedBusiness and management-focusedAccountancy-focused
Can legally:
– Prepare and sign tax returns
– Prepare and sign audited financial statements
– Can represent taxpayers to the IRS
– Financial adviser to company		Can legally:
– Conduct annual audits
– Asist in budget preparation
– Ensure that tax preparation complies with federal regulations
– Handle day-to-day financial records of the company
– Can prepare tax returns and financial audits, but cannot sign them
– Advise in budget plans and financial strategies		Can legally:
– Conduct annual audits
– Asist in budget preparation
– Ensure that tax preparation complies with federal regulations
– Handle day-to-day financial records of the company
– Can prepare tax returns and financial audits, but cannot sign them
– Advise in budget plans and financial strategies
Internationally recognizedInternational recognition depends on the institutionInternational recognition depends on the institution
Work experience varies by stateUsually requires 2 years work experienceNo work experience required
 Few credits towards CPA education credit requirementsMore course credits towards CPA than MBA (if needed)
Ave. 1 – 2 years2-year course1-year course
Issued by state board of accountancyIssued by college or universityIssued by college or university

Is a Master’s degree required to take the CPA exam?

No, it is not. There are other ways to meet the 150-credit hour requirement. In fact, some states do not even require a Bachelor’s degree, although that is not true of most. You will still need to fulfill the state’s work experience and educational requirements, though.

Is a CPA better than an MBA?

It depends on what your goal is. If you want to work in the accounting profession, then an MBA in Accounting would be better than a standard MBA, as it would be more focused. So too, an MAcc would be better than an MBA. If you are planning on sticking with Industry accounting, then you might not need a CPA.

However, a CPA is a US license that is more prestigious than a degree and offers a lot more flexibility than the degrees do, as it allows the holder to legally represent their clients to the IRS regarding taxes and tax returns, and several other capacities than non-license holders are restricted from. If the student is more interested in business operations than finances, then an MBA might be more worthwhile.