CPA vs MBA: Salaries, Career Paths & More

MBA vs CPA?

Which one should you choose?

Many business students and young professionals want to advance their careers, but they aren’t sure what path will help them the most. Some argue that a master’s degree will propel them up the ladder and allow them to command a higher salary. In contrast, others advocate for the respect of the certified public accounting designation.

As a CPA expert, I’m a little partial to the certified accountant path, but I think that both of these career paths can be great options for people who want to take over the business world. Let’s take a look at each option and see which one is right for you!

Key Takeaways

• Credentials: An MBA is a postgraduate degree focusing on various business disciplines, while a CPA is a professional credential certifying expertise in accounting and auditing.
• Education: Earning an MBA typically requires completing a master’s program, which can take 1-3 years, depending on the format. Obtaining a CPA requires fulfilling specific educational prerequisites, passing the CPA exam, and meeting experience requirements.
• Career Focus: An MBA prepares you for leadership roles across various industries, such as finance, marketing, and operations, whereas a CPA is ideal for careers in accounting, auditing, taxation, and financial reporting.
• Job Opportunities: MBA graduates often secure positions like management consultants, investment bankers, and marketing managers, while CPA holders typically pursue roles such as public accountants, auditors, tax advisors, and financial analysts.
• Salary Potential: Both credentials can significantly enhance earning potential; however, CPAs tend to see a higher salary in accounting roles, while MBA graduates may have a broader salary range depending on their industry and position.

What is the Difference Between a CPA and an MBA?

One is a credential, and the other is an academic degree.

CPA (Certified Public Accountant) is a credential you earn by fulfilling educational requirements, experience qualifications, and passing an exam that designates you as qualified to perform public and private accounting duties. The exam consists of Auditing and Attestation, Financial Accounting and Reporting, Regulation, and the choice between one of three Discipline options.

An MBA (Master’s of Business Administration) is a post-graduate degree that focuses on a broad scope of business disciplines (typically): Finance, Accounting, Marketing, Information Technology, and Organizational Management/Operations.

To be accepted into an MBA program, you have to meet a school’s requirements that weigh your undergraduate GPA and performance on the GMAT. (Some schools may also consider work experience.) Universities and colleges worldwide offer MBA programs, whereas the CPA exam is administered by the AICPA (in the U.S.)

CPA vs MBA: Career Path Difference

Individuals with a CPA designation often pursue roles such as public accountants, auditors, tax advisors, and financial analysts. They are equipped to work in public accounting firms, corporate finance departments, or government agencies, where they ensure compliance with financial regulations and provide critical financial insights.

You Might Pursue a CPA If:

• You are focused on a career in accounting, auditing, taxation, or financial reporting.
• You want to work in public accounting firms, corporate finance departments, or government agencies.
• Your goal is to become a licensed and certified expert in accounting and financial regulations.
• You seek to specialize in areas such as forensic accounting, tax consulting, or auditing.
• You want to enhance your credibility and career opportunities in the accounting profession.

Conversely, an MBA offers a broad business education that prepares professionals for strategic leadership roles across various industries. MBA graduates often secure positions such as management consultants, investment bankers, marketing managers, and operations managers. This degree equips them with skills in business management and innovation, enabling them to pursue executive roles and a wide array of career opportunities beyond the realm of accounting.

You Might Pursue an MBA If:

• You aim for a broad understanding of business management, including areas like marketing, operations, and strategy.
• Your career goals include leadership or executive positions in various industries, not limited to accounting.
• You want to develop skills in entrepreneurship, consulting, or corporate strategy.
• You seek opportunities in diverse fields such as finance, human resources, or project management.
• You are interested in networking opportunities and building connections with professionals from various sectors.

CPA vs. MBA Time Requirement Differences

There is no specific timeframe for completing an MBA degree program. How long it takes will depend on whether you study full or part-time and if you attend classes on campus or take them online. Some schools also give credit for work experience, which can knock off some of the hours required to complete a degree.

Since an MBA program is a master’s degree program, there is no type of certification exam that you will be required to pass upon completion. You simply graduate from your program. On average, completing an MBA program takes 2-3 years.

Becoming a CPA takes longer and is much more involved. You must have completed 150 undergraduate credit hours, and some states require that you also have a given number of hours worked under the direct supervision of a CPA. You will also have from 18 to 30 months to sit for and pass all four parts of the CPA exam. In total, it could take between 6 to 8 years to become a CPA.

CPA v.s MBA Cost

Costs of earning an MBA and CPA are highly variable and depend on such factors as geographic location, private versus public institution, number of hours required, etc. Figure in other costs such as books and/or access to online materials, technology costs, study courses, and the cost of room and board if you plan to live on-campus. The average cost of tuition is around $57,000. Other considerations are income and work experience that you will forego if you choose to become a full-time student. That is why part-time, online, and accelerated MBA programs have become so popular.

Putting a price tag on becoming a Certified Public Accountant is less definitive, but tuition will be a large part of the equation. You should also factor in roughly $3,500 for the cost of one of the best CPA exam prep courses you enroll in so you can adequately prepare for the CPA exam.

Aside from these, other CPA exam costs fluctuate vastly from state to state. Some state registration fees are contingent on the number of exam sections you need to take, and you’ll need to pay even more if you require a retake. A safe estimate of the cost for all four sections is around $1,400.

Finally, add $150 to the price of a CPA exam license once you’re finished with the exam. After this, the most relevant costs for your certification are regular CPE courses for CPAs to maintain your state’s license. This could run you a few thousand, but there’s a ton of free content available that drastically cuts down on these costs.

CPA vs. MBA Potential Salaries

Obviously, earning either of these credentials will vastly improve your career prospects and potential salary; however, you’ll still need to factor in work experience and location. But here’s some more specific info for each option:

When you compare the median annual salary of a non-certified accountant with that of a CPA, you can see that they make approximately 30% more. That’s a pretty good pay increase for all the work that goes into it– but remember that these are just averages. There’s a much higher ceiling on your salary as a CPA than as an ordinary accountant.

On the other hand, MBA salaries are largely affected by your location– particularly when it comes to your alma mater. Ultimately, however, you can expect to earn around $50,000 to $80,000 in your first year. As the years pass, this underwhelming number will consistently increase at a much faster pace than others in your position without this degree.

CPA vs MBA: Why Not Have Both?

You can, but it depends on what you want to do. Are you interested in management opportunities or consulting? If so, you can save a lot of time and money and just get your MBA. But if you enjoy working with numbers and want to get paid well for it, you should become a CPA and seek employment at one of the Big 4 Accounting Firms.

However, there are unique career growth opportunities for a CPA who earned an MBA, including upper management positions. The inverse is also true: a finance-focused MBA interested in corporate finance or taxation could get a lot of mileage out of a CPA education.

How to Earn Both a CPA and MBA

There are a few options to make this a little easier. Since you must earn 150 credit hours to become a CPA, you can begin fulfilling this requirement by starting on your MBA. If you have been led to believe that trying to tackle both at the same time is not feasible, think again. Schools are getting more creative and putting together programs that combine disciplines (e.g., MBA/CPA, MBA/MD, etc.), so with a little research, you might find the perfect program that will allow you to earn both an MBA and a CPA at the same time.

If you are currently employed, look into your company’s benefits package to see if tuition reimbursement is offered. While this perk is mostly associated with large corporations, you might be surprised to discover that your company has funds available. However, be prepared to foot a percentage of the bill yourself, as tuition reimbursement averages anywhere from a few hundred to a few thousand dollars.

Just make sure to “read the fine print” since some companies have a stipulation that if they finance your education (particularly in the case of a highly marketable MBA), once you get your degree, you must remain employed there for x number of years or risk having to repay the tuition. The same strategy applies to Certified Public Accountants. Look into what types of professional expense reimbursements are provided by your employer.

If your employer doesn’t provide tuition reimbursement, you still might be able to make the case for them to subsidize your higher education. If you do your homework and can demonstrate what value an MBA level of knowledge will bring to the organization, there is a chance that your employer will agree.

Conclusion

Deciding between an MBA and a CPA depends largely on your career aspirations and professional interests. If you seek a broad business education that prepares you for leadership and strategic roles across various industries, an MBA might be the best choice. On the other hand, if your passion lies in accounting, auditing, or taxation, and you want to become a licensed expert in these fields, a CPA designation would be more suitable.

Both credentials offer significant benefits and can open doors to lucrative and rewarding careers. Ultimately, the right choice will align with your specific career goals, whether that’s climbing the corporate ladder, starting your own business, or becoming a respected authority in accounting. Consider your professional aspirations carefully to determine which path will best help you achieve your goals.

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