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If you perform a quick search of “‘CPA vs. MBA” on Google or Reddit, you’ll quickly conclude that this is a frequently asked question by business professionals with a degree in accounting. Many business professionals realize that they must become certified public accountants (CPA) or earn a Master of Business Administration (MBA) in Accounting to advance their careers. Many professionals will only pursue a CPA license or an MBA, but some will pursue both. While there are no official statistics on the number of CPAs that hold an MBA, a large majority do not. The combination of the CPA and MBA will catapult you into an elite class of business professionals. There are many study options to choose from. If you are pursuing a CPA license, Universal CPA Review is a great choice for visual learners.
What are the requirements for the CPA and MBA?
The key difference between the CPA license and MBA is that the CPA license is a professional licensing credential while an MBA is an academic degree. The requirements to obtain the CPA license and earn an MBA vary widely, but there is some overlap!
To obtain the CPA license, you must meet certain educational requirements, pass the CPA exam (administered by the AICPA), and achieve a certain level of professional experience (the requirements vary by state).
To earn an MBA, you will have to apply to an MBA program at a business school. The typical requirements to apply for an MBA program are:
- Bachelor’s degree from an accredited university/college
- Take the GMAT and/or GRE (varies by target school)
- Work experience (varies by program but typically 2-3 years of experience is required for full-time MBA programs)
- Resume (find a way to stand out)
- Recommendation letters from business professionals, professors, or influential members of your community
- Essays to share your experiences (professional and personal), personality, and why you would be a good fit for the program
- Proof of English proficiency (typically only if the entire program is taught in English)
While the requirements for the CPA and MBA are different, certain credits earned from an MBA program could qualify for the educational requirements for the CPA.
What are the typical roles for a CPA and MBA?
Most CPA’s work for public accounting firms and provide audit and tax services. Other career paths include offering accounting services through private firms or as self-employed individuals. A CPA can also work for corporations, on behalf of the government, or for a nonprofit agency. The ultimate goal for a CPA is to hold the title of Partner, Chief Financial Officer (CFO), etc.
Most professionals that earn an MBA in accounting work in a financial analyst role and assist clients and businesses in making well-informed investment decisions. The MBA degree will allow these professionals to climb the ladder in an organization and advance to the role of CFO.
Why not earn a CPA and MBA?
Like anything in life, holding a CPA license and earning an MBA will not guarantee that you will have a successful career. However, a professional that holds a CPA license and earns an MBA will have a unique resume that will allow them to qualify for a number of different roles and responsibilities.
Being proficient in the technical aspects of accounting while also possessing the skill sets to make informed business decisions will increase your chances of obtaining a key management role in a firm or corporation. Many key management roles require the professional to hold a CPA or MBA and now you will have both!
Before you pursue the CPA license or apply for an MBA, you must have a clear understanding of your intended career path. Do your research and talk to other professionals who have their CPAs and/or MBAs to understand their career path. Ask for any insights or advice that they have for other professionals that are considering earning the CPA and MBA.
Why a Professional Should Earn Both a CPA License and an MBA
Many professionals hold the Certified Public Accountant (CPA) designation, which requires them to pass the CPA exam in order to achieve it. The CPA license and the CPA exam are both valuable in their own right, but some people may wonder if there’s any value in having both or if it’s necessary to obtain one before obtaining the other. This article discusses why you should consider getting both a CPA license and an MBA to improve your professional career prospects, no matter what profession you happen to be working in at the moment.
What is the difference between the two?
A Certified Public Accountant (CPA) is a designation earned by passing the CPA exam, which is administered by the American Institute of Certified Public Accountants (AICPA). An MBA is a Master of Business Administration degree, which can be earned from many different business schools. Unlike the CPA exam, there are no prerequisites for taking the GMAT or GRE test to apply to an MBA program. And it’s not uncommon for aspiring accountants to earn an MBA before they take the CPA exam.
The benefits of earning both
There are several benefits to earning both a CPA license and an MBA. Perhaps the most obvious benefit is that it will make you more attractive to potential employers. But there are other benefits as well. For one, pursuing both degrees will help you develop a well-rounded skillset. And if you’re planning on taking the GMAT or GRE for graduate school, test prep for both exams will be easier if you have a solid understanding of accounting principles. Plus, studying for two different exams means that you’ll better understand how to prepare for each test individually.
How long does it take to become a licensed CPA?
In order to become licensed as a Certified Public Accountant (CPA), you must first pass the Uniform CPA Examination. When CPA exam scores are released, you must achieve a 75% in order to pass. The examination is comprised of four sections, each with its own test prep requirements. The time it takes to prepare for and pass the examination varies from person to person, but generally speaking, it takes most people at least 12 to 18 months to complete the process and pass all four exams. Once a candidate passes their first section, they will only have 18 months to pass the remaining three 3 sections.
The online courses that support the licensing process
There are a few online courses that support the licensing process for CPAs. The National Association of State Boards of Accountancy (NASBA) offers affordable test preparation tools to help students study for their exam, including coursework materials such as flashcards, quizzes, and video tutorials. Once you pass your exam, you’ll be ready to jump right into an accounting career!
Budgeting for all education costs
Whether you’re just starting out in your career or you’re a seasoned professional, there are always going to be costs associated with furthering your education. If you’re looking at earning both a CPA license and an MBA, you’ll need to budget for the cost of taking the CPA exam as well as the cost of pursuing an MBA. Here’s a breakdown of what you can expect to pay for each:
When to start applying for licenses
It’s never too early to start thinking about the licenses you’ll need for your business. In fact, it’s a good idea to start researching and applying for licenses as soon as you have a business idea. That way, you can be sure you have everything in order before you launch your business.
Practical tips on how to get started with studying
- Talk to your accountant or another professional who holds both a CPA license and an MBA to learn more about the benefits of having both.
- Research MBA programs so that you can find one that might fit you well. You may also find that certain MBA programs will also help you meet the educational requirements to sit for the CPA exam.
- Consider how you will finance your education, as both an MBA and CPA license can be expensive to earn.
- Start studying for the CPA exam as soon as possible, as it can take several months to prepare for and pass the exam.
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