Definitions of ACCA and CPA
ACCA, short for the Association of Chartered Certified Accountants, is the global body for professional accountants founded in the UK in 1904. The ACCA certificate is considered the “Passport to the Global Accounting Circle”, and is recognized by 19 accounting organizations around the world.
CPA, short for Certified Public Accountant, refers to the practitioners who have obtained the CPA certificate and engage in auditing, accounting consulting and accounting services as entrusted. CICPA, short for the Chinese Institute of Certified Public Accountants, is the only organization in China that is officially authorized to issue a CPA certificate. AICPA, short for the American Institute of Certified Public Accountants, is the only organization in the US that is authorized to issue an audit certificate. The AICPA certificate, being the highest-level certificate in the global accounting circle, is equivalent to the CPA certificate in Hong Kong, Canada, Australia, New Zealand, Ireland, Mexico and other eight countries and regions.
Differences between ACCA and CPA
Difference in the accounting standards adopted
Accounting standards are the basic rules and norms that must be observed by accountants in accounting practices. Both an ACCA certificate and a CPA certificate are professional qualification certificates recognized by accounting and financial industries, but they are governed by different international accounting standards.
The ACCA certificate is governed by the International Financial Reporting Standards (IFRS), which employs the principles-based accounting system. This system, employed by the UK-led IFRS and the Chinese accounting system integrating accounting policies and accounting standards that governs CICPA, has now been accepted and used in more than 120 countries to achieve high-level global convergence.
The AICPA observes the US Generally Accepted Accounting Principles (US GAAP) in common practices, which were formulated by the Financial Accounting Standards Board (FASB) with a rules-based approach. Setting specific rules for all possible situations and being highly operable, it is one of the most complex accounting standard systems around the world.
Which option is more suitable for you?
ACCA, CICPA and AICPA are all highly valuable professional certificates. Your decision depends on your career vision.
The ACCA exam focuses more on holistic financial management and accounting practice, so an ACCA-certified accountant is able to fully understand corporate operations and is more competent for enterprises' strategy development, business operation and planning, financial management and internal control. Multinational companies or multinational jobs are good choices for ACCA-certified accountants. The ACCA certificate is internationally recognized, and covers global accounting standards and practices. In China, more than 700 companies including financial institutions, large banks, investment banks, multinational enterprises, large domestic enterprises, large global financial consulting agencies and professional accounting firms recognize an ACCA certificate, offering a number of choices for an ACCA-certified accountant.
CICPA-certified accountants are authorized by national laws to issue accounting reports, so domestic accounting firms and domestic enterprises are good choices for them.
AICPA places emphasis on auditing, accounting and taxation, and its courses provide professional knowledge and skills in relation to auditing, accounting and taxation, aiming to make students all-rounded and professional accounting professionals. Deloitte, PwC, EY and KPMG, as well as US-invested enterprises in China and US-listed Chinese enterprises, are good choices for AICPA-certified accountants. Many successful Chinese enterprises have gone public in the US, such as Alibaba, Baidu and JD, and US enterprises account for nearly half of the world's top 500 and their offices are all around the world. To be an accountant for these enterprises, having a good understanding of the tax laws related to US GAAP is essential, and possessing an AICPA certificate can help you stand out.
The need for high-quality accountants in China
Amid the fourth round of the globalization wave and fruitful results of the Belt and Road Initiative, foreign-invested enterprises, joint ventures and Chinese enterprises engaging in multinational business are increasing. Globalization brings greater financial risks and challenges to enterprises, such as exchange rate fluctuations, risks arising from multinational transaction payments, and changes in tax policies. To cope with financial risks, enterprises are in urgent need of versatile certificate public accountants who can deal with both international and domestic business, thus ensuring compliance with the national tax laws and regulations of different countries.
Professionals with international financial and accounting expertise are sought by enterprises for their cross-border business and global financial reports, so the demand for professionals with an ACCA or CPA certificate is increasing in China. China is facing a serious shortage of high-quality accounting and financial professionals, and the number of ACCA-certified and CPA-certified accountants still falls far short of market demand. According to Robert Half's 2024 Salary Guide, CPA and ACCA certificates are still the most in-demand in China.(1)
Both CPA and ACCA certificates are internationally recognized qualifications that are vital for accounting and financial professionals, and can enhance their occupational skills and competitiveness. The choice between ACCA and CPA depends not only on their relative value but also on the requirements of your intended job and the needs of your intended industry. Make decisions based on this to better meet your career demands and get your certificate to boost your career development.
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