ACCA vs Indian CA
ACCA vs Indian CA: get details about other the exam and its differences.
What is ACCA?
ACCA is the global body for professional accountants. The institute, the course and the recognition – all three are called ACCA. It is the highest level of body for the accountants all over the world. You can say “ACCA is father of all Accounting bodies in the world”. So definitely it is one step above the Chartered Accountants in India or Certified Public Accountants in USA. And therefore, it gets a better reputation in the world.
What is the scope of ACCA?
ACCA are the professionals in accounting. They are the globally the best persons when it comes to accountancy. So anything around the world in relation to accountancy is within the scope of ACCA.
Benefits of doing ACCA?
According to ACCA institute, the benefits of doing ACCA are:
- Unrivalled global network – ACCA is the global body for professional accountants with over 162,000 members and 428,000 students in 173 countries
- Respected by employers – 8,500 approved employers globally
- Putting you in charge of your studies and career – Once you qualify with ACCA you can gain exemption from parts of other academic qualifications, making it quicker for you to complete them.
Why ACCA is not preferred/ should not be preferred?
- ACCA course syllabus is global & not related to any country. This is a problem because every economy is different. Therefore, to deal with problems of a particular country, obviously the local professionals who have knowledge about local situations would be preferred and not the global ones. e.g. CAs in India or CPAs in US.
- ACCA are reputed, but not recognized. ACCAs cannot practice in India or in most countries. ACCAs are not allowed to attest, attest function is still with Chartered Accountants only.
- Why would an employer prefer ACCA over CA? The course structure and subjects are almost similar, however, CA talks about local scenarios and ACCA talks about global scenarios and thereby, CAs win. Because, when my operations are in India, I would prefer a CA. When my operations are global, I will keep professionals from all countries respectively for each country. ACCA will not be useful as multi-national operations cannot be given to be handled by one person, due to magnitude. So ACCAs are never useful.
- You can do Job only and that to in Large Companies only – Unlike CA or other local courses, ACCA does not have many options. ACCA has one single road and no choice of directions. If you get a job you are good to go, if you don’t you cannot switch to any other modes like consulting.
ACCA vs Indian CA : Comparing with different factors.
CA from ICAI is the only one qualification that allows a person to practice as a Chartered Accountant in India, while ACCA is the one qualification that can be called a truly global Chartered Accountancy qualification.
But please note that in India also ACCA students are getting placed easily in Big 4 and MNC’s. But this maybe true only for those in cities and the same employment opportunities might not be available in rural areas.
2. Toughness in passing the exam
If something is easy to attain, it won’t have much value. So CA being regarded as one of the toughest qualification to pass has its own value and standing. But I will have to add that the group system and controlled pass rates are major factors contributing to the toughness of the same.
ACCA is by no means easy to pass and Indian students will definitely have to switch from the rote learning methods to one based on understanding and application. But the absence of group system will take away the frustration attached to doing CA and make it easier to pass.
Being a UK qualification, ACCA is much more costlier than CA.
4. Articleship/Practical Experience
Both qualifications require 3 years practical experience. But the rigid CA articleship rules are meant to provide cheap labour to their members (maynot be meant to, but end up providing). While the flexibility allowed by ACCA means that the students can work in any relevant financial role and earn a salary than a stipend during the 3 years.
5. Earning potential
Any qualification can only open doors for you and how high or how far does one go through that door will depend on the person, the decisions he takes and ultimately to a great extent “luck” or “timing” or whatever you want to call it. So I wouldn’t want to compare the earnings of a CA or an ACCA with 20 years of experience, but I will just say that ACCA trainees are earning much more than the CA counterparts.
This was all about the both of the exam with all the difference factor you can find.