It takes time and effort to earn a CPA designation and therefore to earn an attractive CPA salary. This premium compensates for the rigorous process of obtaining a CPA license, which includes meeting the 150 credit hour educational requirement, passing the CPA exam, and gaining relevant work experience. The investment in becoming a CPA is substantial in terms of time and finances, especially considering the additional educational costs and the effort required to prepare for and pass the CPA exam. According to the Bureau of Labor Statistics (BLS), accountants and auditors earn on average $71,550 annually. However, CPAs with more experience have a greater earning potential, and those who have 20 years of experience could earn up to $150,000 annually. If you are passionate about accounting and finance and want to become an accountant, then becoming a CPA is a good opportunity to demonstrate your expertise.
- DeVry’s programmatic offerings and their accreditations are subject to change.
- Depending on your tuition cost and the role you take, the growth in salary may result in recouping the cost of earning an MBA within a few years.
- So, if you are a college graduate with a bachelor’s degree in finance or accounting, or an entry-level accountant seeking a higher salary and more work responsibilities, you may want to consider obtaining a CPA designation.
- Whether you’re aiming for the boardroom or the accounting firm, making the right choice now can set the stage for a fulfilling and successful career.
- A certified public accountant, for example, might undertake a long and lucrative career at a publicly traded Fortune 100 company.
MBA Degree Salary: 2024 Guide
Both an MBA and a CPA will create a number of career options for you, many of which are lucrative. Those who are holders of the CPA designation and wish to go back to school to pursue an MBA will find the resources to study with the CPA firm. You can achieve an MBA even while working part-time as well as full-time at the CPA firm. Making more money in an area with a high cost of living may result in a similar lifestyle as making less money in an area with a low cost of living. A CPA in New York could make over $100,000, but a junior accountant in a different state might only make a median salary under $50,000.
Skills Obtained
CPAs have a broad salary range from $45,000 to $300,750, with a median salary of approximately $122,000. While CPAs may have a higher starting median salary, MBAs often see rapid salary growth in various industries, reflecting the value of their broad business skills and leadership capabilities. The CPA certification is a highly respected professional designation that signifies expertise in accounting, auditing, tax, and business law. The CPA certification aims to ensure that accounting professionals possess the necessary knowledge, skills, and ethical standards to protect the public interest. CPAs are recognized for their role in enhancing the reliability of financial statements, which is crucial for investors, regulators, and the overall functioning of the economy. CPA is a financial accreditation awarded by the American Institute of Certified Public Accountants (AICPA), and it is seen as a mark of achievement in the accounting industry.
The Online MBA From Rice Business
Applicants interested in becoming a CPA should check with their state board of accountancy regarding CPA eligibility requirements before enrolling in any accounting program. The takeaway for prospective students should be that well-paying careers are open to you regardless of whether you choose an MBA or CPA program. There isn’t really a “better” or “worse” option when it comes to the MBA vs. CPA debate. Or are you a managerial type who loves to lead other people in all sorts of settings?
Additionally, many schools outside of this top ten list still report above-average salaries. Certified public accountants are usually in demand, and a good CPA can pull in a high five-figure salary. Plus, if they decided not to work for a large company, they could set up shop on their own. This career offers work opportunities in various public and private sectors, from the government to information technology.
Understanding CPA vs MBA
Early-career CPAs tend to take on entry-level or middle-management roles in finance or accounting. And Abrash argues that learning on the job can lead to higher-level and higher-paying positions. Accounting can be a technical role at first, but today’s jobs demand cpa vs mba salary more from these professionals as industries grow and change, she notes. In comparing the salary potential of MBA graduates and CPAs, it’s evident that both career paths offer lucrative opportunities, albeit with distinct trajectories and investment requirements.
The CPA exams are much more difficult than the semester or trimester exams conducted in an MBA institute. The difficulty of the CPA exams can be ascertained from the year 2020, which shows that only 55%-65% of the students can clear each part of the CPA exams . On the other hand, almost all the candidates who enroll in the MBA program clear the semester or trimester exams. For successful completion of the CPA exam, a candidate should pass all four parts of the course within a period of 18 months, and the time starts from the day the candidate clears the exam for the first part. On the other hand, a candidate who joins an MBA program invariably completes the course within the stipulated time of 1 to 2 years, which depends on the type of program – full-time, part-time, executive, or regular. The basic difference between Certified Public Accountant (CPA) and Masters in Business Administration (MBA) is that the former is a credential and the latter is an academic degree.
Similarly, an MBA graduate might take on an executive position at a large international conglomerate. Or they may decide on a position with a smaller local company that pays less but offers a better work-life balance. Even if you decide not to obtain both an MBA and a CPA license, there isn’t a “best” or “worst” option.