How to choose between the U.S. CPA and Indian CA

The CPA is recognised globally while the CA is well-respected within India
| Photo Credit: Freepik

The global demand for skilled accountants is rising, with the U.S. facing a significant shortage. As of 2024, nearly 75% of U.S. CPAs are approaching retirement, leading American firms to recruit internationally, particularly from India, where finance professionals with U.S. CPA and Indian CA credentials are highly sought after. The rapid expansion of Global Capability Centres (GCC) in India is further driving opportunities for finance professionals, as U.S. firms are expanding financial operations in India, increasing demand for CPAs in compliance, risk management, and audit roles.

The U.S. CPA credential is globally recognised in financial hubs like the U.S., Canada, and Australia. Governed by AICPA, it aligns with U.S. regulatory standards, making it highly valuable for multinational corporations. CPAs are highly valued in corporate finance, audit, taxation, and advisory, often advancing to leadership roles like CFOs and financial directors. Their expertise in U.S. GAAP and SEC regulations makes them sought after. In contrast, the Indian CA qualification is well-respected domestically but offers limited global mobility. CAs excel in taxation, audit, and corporate governance but may need additional global credentials like CPA for senior roles in multinational firms.

Structure

The CPA qualification is often seen as more accessible than the CA designation due to its streamlined exam structure and higher pass rates.

U.S. CPA: Four sections — Auditing and Attestation (AUD), Regulation (REG), Financial Accounting and Reporting (FAR), and one discipline section (BAR, ISC, or TCP) — can be completed in nine to 12 months, with a pass rate of 45-55%.

Indian CA: Three levels — Foundation, Intermediate, and Final and a mandatory three-year articleship — extend the qualification timeline to three to five years or more. With a pass rate of 10 to 15%, it is one of the toughest accounting certifications globally.

The CPA certification offers flexibility, allowing candidates to schedule individual exam sections within an 18-month window. In contrast, the CA programme’s rigid structure and unpredictable exam results make it more time-intensive.

How to choose

Your choice should depend on your career goals.

Choose CPA if you:

• Seek an internationally recognised credential with global career mobility

• Aim for higher earning potential and leadership roles in multinational firms

• Prefer a structured qualification process that can be completed in under a year

• Want to work in finance, consulting, risk management, or advisory roles with better work-life balance

• Plan to leverage the growth of GCCs in India for better career prospects

Choose CA if you:

• Plan to build a career in India

• Are interested in taxation, audit, or entrepreneurship within the Indian financial system

• Prefer hands-on training through a structured three-year articleship

While both offer lucrative career opportunities, the CPA credential is gaining prominence in India due to its global recognition and relevance in multinational firms. Aspiring accountants should evaluate their career goals carefully and choose the certification that best aligns with their professional ambitions.

The writer is the Founder of Simandhar Education.