Whether it is right to enroll for a Master’s in accounting or become a CPA is one of the crucial decisions for anyone who wants to advance their career in accounting.
This article will reveal everything you need about a Master’s in Accounting and CPA certification and help you choose the right path for your career.
What we will cover?
Quick Summary
| Aspect | Master’s in Accounting | CPA Certification |
|---|---|---|
| Nature | Academic degree | Professional certification |
| Duration | 1-2 years full-time study | 6-18 months (exam prep + passing all parts) |
| Education Requirement | Bachelor’s degree (any field) | 150 credit hours (usually bachelor’s + additional coursework) |
| Additional Requirements | – GRE/GMAT scores – Letters of recommendation – Statement of purpose |
– Pass all 4 parts of CPA exam – 1-2 years of relevant work experience – Meet state-specific requirements |
| Focus | Broad, advanced accounting knowledge | Practical skills, regulations, and professional standards |
| Typical Coursework | – Advanced Financial Accounting – Auditing and Assurance Services – Tax Research and Planning – Accounting Information Systems – Managerial Accounting |
– Auditing and Attestation (AUD) – Financial Accounting and Reporting (FAR) – Regulation (REG) – Business Environment and Concepts (BEC) |
| Average Cost | $20,000 – $40,000 (tuition only) | ~$3,000 (exam fees and preparation materials) |
| Entry-Level Salary | ~$73,000 | ~$55,000 – $60,000 |
| Mid-Career Salary (5-9 years) | ~$80,000 | ~$72,000 |
| Late-Career Salary (20+ years) | $100,000+ | $99,000+ |
| Top-Paying Roles | – MBA – Finance Concentration: $101,000 – MBA – Accounting and Finance: $94,000 – MS in Taxation: $90,000 |
– Chief Financial Officer (CFO): $138,493 – Financial Director: $114,430 – Corporate Controller: $102,842 |
| Career Opportunities | – Public Accountant – Government Accountant – Corporate Accountant – Forensic Accountant – Tax Advisor |
– Public Accountant – Corporate Finance – Consultant Manager – Auditor – Financial Manager – Academia |
| Skills Acquired | – Advanced accounting theory – Research skills – Financial analysis – Critical thinking – Communication skills |
– Practical accounting skills – Auditing expertise – Tax knowledge – Regulatory compliance – Ethics in accounting |
| Professional Recognition | Academic credential, valued in academia and research | Highly regarded in public accounting and corporate finance |
| Continuing Education | Not typically required post-graduation | Required to maintain CPA license (varies by state) |
| International Recognition | Recognized globally, may need additional certifications in some countries | Highly recognized in the US, may need additional certifications internationally |
| Best Suited For | Those interested in academia, research, or specialized accounting roles | Those aiming for public accounting, auditing, or high-level corporate finance positions |
What Does a Master’s in Accounting mean?
A Master’s Degree in Accounting is a high-level program for anyone who wishes to widen their understanding of advanced topics in accounting such as auditing, taxation, ethics in accounting, financial statement analysis, advanced accounting, business law for accountants, accounting information systems, and more.
It comprises basic principles of accounting standard practice and theory, critical thinking, analytical skills, and practical application of skills.
A bachelor’s degree in accounting is crucial for pursuing a master’s degree. However, many programs accept students with degrees in other fields of study once they complete the required courses.
Also, the Master’s degree program takes one to two years to complete and have the certificate. It consists of 30 – 36 credit hours.
The program will enhance student’s technical knowledge and basic skills like critical thinking and communication. Some of the courses to enroll in include:
- Tax Research and Planning
- Auditing and Assurance Service
- Managerial Accounting
- Accounting Information System
- Advance Financial Accounting
What are the Advantages of Having a Master’s Degree in Accounting?
1. It gives you broad knowledge and prepares you for every professional role in accounting.
2. It shows you the numerous advantages and opportunities in specialized areas like Taxation, financial analysis, etc.
3. It also gives you the privilege of teaching accounting in college and university.
4. It fosters your chance of getting a promotion in your workplace due to your higher-level skills.
5. It brought about networking opportunities to enhance your chances of employment.
What Does CPA Mean?
A Certified Public Accountant (CPA) is a professional certificate awarded to accountants who pass the CPA exam and meet specific education and experience requirements.
Education And Licensing Requirements
If you wish to become a CPA, you need to meet these requirements:
1. Most states require at least 150 credit hours of higher education, which can only be attained through a bachelor’s degree and some additional courses.
2. It is mandatory you pass the uniform CPA exam, which comprises four sections:
– Auditing and Attestation (AUD)
– Financial Accounting and Reporting (FAR)
– Business Environment and Concepts (BEC)
– Regulations (REG)
3. Also, CPA candidate must have at least 1-2 years of working experience under the supervision of a licensed CPA.
| Master’s in Accounting | CPA |
|---|---|
| Bachelor’s degree | 150 credit hours of education |
| GRE/GMAT scores | Pass CPA exam (4 parts) |
| Letters of recommendation | 1-2 years work experience |
| Statement of purpose | State-specific requirements |
What Are The Advantages of CPA?
1. It is known for its high earning potential.
2. It gives you the opportunity for a senior-level position in Accounting and Finance
3. It gives room for numerous job opportunities
4. The CPA certification is a sign of professionalism, and it helps in your credibility with employers and clients, both local and International
Comparing Salary: Master’s in Accounting vs. CPA
The salary of a CPA and a master’s in accounting varies due to factors like environment, industry, experience, and essential roles. There is an overview based on data by Payscale below:
CPAs Salary
According to Payscale, the average salary for a CPA in the United States is approximately $69,980 per year. However, this amount varies due to the level of their experience:
- Entry-Level: $55,000
- 1-4 Years: $60,000
- 5-9 Years: $72,000
- 10-19 Years: $86,000
- 20+ Years: $99,000
With additional experience and advanced roles, CPAs can earn even higher salaries:
- Accounting Manager: $74,738
- Financial Controller: $86,438
- Corporate Controller: $102,842
- Financial Director: $114,430
- Chief Financial Officer (CFO): $138,493
Master’s in Accounting Salary
The average salary for individuals with a Master’s in Accounting, regardless of CPA status, is around $73,000 annually. Here’s a breakdown of how specific roles and specializations might impact salary:
- MS in Accounting: $73,000
- MAcc (Master of Accounting): $73,000
- MBA – Accounting Concentration: $77,000
- MS in Finance: $78,000
- Master of Finance (MFin): $78,000
- MAcc – Accounting and Finance Concentration: $80,000
- MBA – Business Administration Concentration: $85,000
- MS in Taxation: $90,000
- MBA – Accounting and Finance Concentration: $94,000
- MBA – Finance Concentration: $101,000
The above data has revealed that CPAs earn a higher salary than those with a master’s in accounting. Though both can achieve higher salaries due to their experience, CPAs have the chance to advance into senior levels and roles.
Career Opportunities: Master’s in Accounting vs. CPA
Careers with a Master’s in Accounting
1. Public Accountants
2. Government Accountants
3. Corporate Accountants
4. Forensic Accountant
5. Tax Advisor
Career lane with CPA
1. Public Accountants
2. Corporate Finance
3. Consultant Manager
4. Auditor
5. Financial Manager
6. Academia
CPAs have wider career opportunities and huge earning potential than those with Master’s degrees in accounting.
| Master’s in Accounting | CPA |
|---|---|
| Public Accountant | Public Accountant |
| Government Accountant | Corporate Finance |
| Corporate Accountant | Consultant Manager |
| Forensic Accountant | Auditor |
| Tax Advisor | Financial Manager |
| Academia |
Cost and Time Consideration
Accounting
The cost of a master’s degree in accounting differs between institutions and programs. However, the average is around $ 20,000 – $40,000, not including additional fees like books, course materials, transportation, etc.
CPA Certification
The cost of the CPA is, on average, around $3000. This amount covers the exam fee, application fee, and review courses.
Though the amount is less than a master’s in accounting, it is crucial to check the time and effort required to prepare for and pass the CPA exam.
Time Frame
The CPA exam can be completed within 6-12 months, but obtaining the required work experience will take 1-2 additional years.
To have a master’s degree, it takes 1-2 years of full-time study.
In conclusion, whether you want to become a CPA or have a master’s in accounting depends on your career goals and expectations.
A master’s degree offers deep education on accounting roles and skills, while a CPA provides professional recognition and increases earning potential. However, applying for the two will enhance and improve your career to the peak in the accounting and financing industry.
Discover your professional goals and aims and the specific requirements needed to make the best decision for tomorrow.
FAQs
Is a CPA a master’s degree?
No, a CPA is a professional certification, not an academic degree.
Is a CPA the same as an accountant?
No, a CPA is an accountant who has met specific licensing requirements, including passing the CPA exam. All CPAs are accountants, but not all accountants are CPAs.
Do you need a Master’s in Accounting to be a CPA?
No, you don’t necessarily need a Master’s in Accounting to become a CPA. However, you need to meet the 150-hour education requirement, which can often be achieved by earning a Master’s degree.
Can I get a Master’s in Accounting with an unrelated undergraduate degree?
Yes, it is possible to get a Master’s in Accounting with an unrelated undergraduate degree. Depending on the program, you may need to complete prerequisite courses.
Do you need a master’s to be an accountant?
No, a master’s degree is not required to become an accountant.
What are the main differences between a Master’s in Accounting and a CPA?
A Master’s in Accounting is an academic degree that provides a comprehensive accounting education, while a CPA is a professional certification that focuses on specific accounting skills and practices. Both can lead to successful careers, but they serve different purposes.
Can I pursue both a Master’s in Accounting and a CPA?
Yes, pursuing both can be beneficial. A Master’s degree can help you meet the 150-hour education requirement for the CPA exam, and having both qualifications can make you a more competitive candidate in the job market.
How long does it take to become a CPA?
Becoming a CPA typically takes one to two years after completing your bachelor’s degree. This includes meeting the 150-hour education requirement, passing the CPA exam, and gaining work experience.
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