The financial sector is very large, which means that there are also a large number of qualifications that can help you establish a career in that field. With the number of degrees – at bachelor’s, master’s and doctoral levels – that you can pursue in the field, it can be difficult to understand the differences between each of these and the impact that they can have on your future prospects. As a young professional or student of business, you may find yourself feeling confused about whether you should opt for a master’s program in business administration – an MBA – or pass an exam to become a Certified Public Accountant – commonly known as a CPA.
There are some major differences between both these qualifications, which make them ideal for different groups of people. This brief guide — tackling the MBA vs CPA dilemma — may help you understand which of the two options is more suitable and in line with your goals and aspirations.
Master of Business Administration
The biggest difference to keep in mind while thing about the MBA vs CPA debate is that one is an academic degree, while the other is a credential. To understand the differences in the best possible way, it is important to look into the features of both an MBA and CPA credentials individually. An MBA, for example, is usually a two-year degree – which can be spread over longer periods as well – that you undertake if you want to improve your chances of landing a relatively higher paying job in the realm of finance, human resources, or any field that requires the management of people and resources. MBA programs are usually quite expensive to pursue, but there are also some part-time options like executive MBA programs, which allow you to work as you complete the required credits to receive your MBA degree.
Average Time It Takes to Complete
The average time that it takes to complete a master’s degree in business administration is two years, but there are a number of newer programs that can fast track this process so that you finish faster. Part-time programs, like EMBAs and others, are difficult to fast track as they are already loaded with credits that need to be finished in shorter intervals of time. An average day in a full-time program can be quite taxing, in terms of the amount of work that you will be required to put in.
Requirements to Enroll
The requirements may be different for different programs. For example, if you are applying for one of the best MBA programs, you may need to fulfill more prerequisites than are required for a less prestigious program. Some common requirements are a good GMAT or GRE score, high GPA in your undergraduate program, letters of recommendation, a CV or resume, and so on.
Average Cost
MBA programs are expensive, but most people opt for these because they are expected to boost your chances at negotiating better salary packages – which will be discussed in greater detail next – once you are done with it. On average, an MBA program can cost you between $100,000 to $200,000, just for the tuition costs involved. An EMBA degree is even more expensive, but your company or firm usually finances it to some degree.
Average Salaries
There are a number of factors that may influence the average salary of an MBA graduate, especially the amount of experience that you have in the field. On average, an MBA graduate can earn anywhere between $75,000 and $100,000. Senior business executives stand to earn more than this.
Certified Public Accountant
After getting a better understanding of what an MBA degree entails, you can move on to CPA or the Certified Public Accountant credential. The process of getting a CPA is quite heavy on the details and you will be required to meet some education and experience-based qualifications. Once you have met these requirements, you will have to pass a very long exam. The exam is made up of four distinct parts. The first of these is auditing and attestation, followed by business environment and concepts, financial accounting and reporting, and finally regulation. If you pass this exam, you will be allowed to carry out different functions related to public and private accounting.
Average Time It Takes to Complete
As CPA is essentially an exam, you can complete it as soon as your education allows. On average, most people finish this program within 18 months, but in some cases, people have been known to finish it in even as low as six months. This time is spent studying for the exam, while the exam itself can take between 14 and 16 hours.
Requirements to Enroll
In order to get a CPA license, you need to have a bachelor’s or master’s degree. While a degree in accounting may be helpful, it is not a prerequisite and you can apply for the CPA exam even without it.
Average Cost
One of the major factors that make CPA quite popular amongst people looking to advance their career is that it costs much lesser than a full-time MBA degree at a reputable institution. It is possible to receive this qualification in as little as $3,000.
Average Salaries
The average salary that you can draw with a CPA license is actually higher than the salary you get right after finishing the MBA degree, crossing an average of $100,000 after some years of practice.
Wrap-Up
An MBA vs CPA debate is wrong at the very base of its existence, as these are two distinct qualifications that may not be comparable at all. While an MBA is a full degree that requires a certain number of hours to be put in, CPA is a qualification that you can achieve by taking an exam – albeit a very long one. The scope of both qualifications is very different and the subjects that are covered in each of these also differ. The final decision that you take should be on the basis of your career goals and one that will guarantee a step forward!