Accountants are essential for any business as they quantify how a business is running and point out any room for growth, financial growth that is. Without a reliable team of accountants conducting accurate bookkeeping and overseeing accounts, a company will have no adequate gauge of whether they are doing good or bad in terms of financial growth. Therefore, accountants serve a critical role for any business or individual to track their finances, making this an extremely in-demand career path.
While most accounting jobs involve keeping track of financial information, helping with tax returns, assisting in financial planning, and more, it’s important to understand there are different types of accounting jobs. Inevitably, different types of accountants involve different levels of education and certifications.
Two main types of accounting positions include being a chartered accountant (CA) and a certified public accountant (CPA). Each of these accounting positions is similar in terms of roles and responsibilities; however, primarily differ in how you can achieve their respective position/ job title and country or countries of origin.
If you are curious about how to become a chartered accountant without a degree, want to learn more about what a certified public accountant without a degree in accounting salary is, or are asking yourself “can I become a certified public accountant without a degree in accounting”, keep on reading below!
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What Is a Chartered Accountant?
A chartered accountant (CA) is an international accounting professional who can provide accounting services in a variety of countries around the world, excluding the United States. The main roles and responsibilities of a CA involve auditing, bookkeeping, assisting with taxes, and providing financial planning/advice.
While being a chartered accountant involves essentially accounting on an international scale, different countries have different rules when it comes to becoming a CA in their respective border. For example, the process of becoming a CA in Australia differs from becoming a CA in Canada. Therefore, carefully research the specific rules and regulations for how to become a CA in the specific country you live in or plan to live in.
Difference between a Chartered Accountant and Certified Public Accountant (CPA)?
The main difference between a chartered accountant and a certified public accountant is a CA involves international accounting designation outside the United States, whereas a CPA is only designated for individuals living within the US. In other words, if you live in another country besides the US, your chartered accounting license/ title will be a CA while a CPA license is only for individuals who live in the United States. A chartered accountant or CA license is basically an equivalent to a certified public accountant or CPA license in the United States.
While a CA and a CPA are technically two different accounting positions due to their locales, they are nearly the same. This is because each accounting position shares similar day-to-day tasks from bookkeeping to conducting audits, assisting with taxes, and helping with financial decision-making and planning. The typical certified public accountant without a degree in accounting salary is anywhere from $46,000 to $68,000. Meanwhile, a chartered accountant’s salary will be dependent on the country where the position is located. For example, a chartered accountant’s salary in the UK ranges from £38,206 (about $46,000 USD) to £62,626 (about $75,500 USD), while a chartered accountant’s position salary in Australia is in the range from $80,629 AUD (about $54,500 USD) to $141,305 AUD (about $96,000 USD).
Inevitably, how you become a CPA vs a CA differs, which will be discussed later in this article. However, certain CA professionals from Canada, New Zealand, Australia, and Ireland have an opportunity for their qualifications to transfer over to the United States so they can work as a CPA in the US. These individuals must pass a test to transfer their CA qualifications.
It’s also important to understand that different boards oversee becoming a CA vs a CPA. A CPA is overseen by the American Institute of Certified Public Accountants or AICPA whereas a CA is overseen by different organizations depending on the country the license is located.
Why is a CPA a more realistic career path than a Chartered Accountant in the United States?
A CPA is a more realistic career path than a CA in the United States because if you plan to be a licensed accountant working in the U.S., you’ll then need a CPA license, not a CA license. While previously mentioned you can technically in some cases qualify and transfer your CA qualifications to become a CPA, however, that won’t make sense if you were already living in the US.
Therefore, if you are living in the United States and plan to work in the country as a licensed accountant, you should work towards getting your CPA license as this (not a CA license) is a requirement to work. Read on to learn about the fastest way to become a certified public accountant, and what qualifications are necessary to becoming a CPA below.
What Qualifications Do You Need to Be a Chartered Accountant and a CPA?
The qualifications for becoming a chartered accountant differ from becoming a certified public accountant. That being said, three main qualifications are involved in becoming a CA and CPA which include educational requirements, exam requirements, and continuing education requirements.
If you are looking for the fastest way to become a certified public accountant, you must ensure you follow each of these 3 qualification standards below.
Here are some specific qualifications to know about if you want to become a CPA:
1. Education
To become a CPA, you must be at least 18 years old, be a U.S. citizen with a social security number, have a Bachelor’s degree in accounting, or have at least 120 hours of completed undergraduate coursework. Keep in mind that this is a general criteria to becoming a CPA as majority US states and territories require, for example, at least 150 hours of undergraduate coursework as part of their requirements. It’s important to consult the accounting board of the state in which you live in order to get an accurate criteria or requirements for a CPA.
That being said, it is possible to take the CPA exam without a bachelor’s degree in accounting in certain states such as Hawaii, Maine, Alaska, Massachusetts, and Georgia.
2. Examination
To become a CPA, you need to successfully pass the CPA exam. The CPA exam includes four main topics: 1) auditing and attestation 2) business environment and concepts 3) financial accounting and reporting 4) regulation.
3. Continuing Education
A CPA needs to complete at least 40 hours of continuing education training each year to ensure they are up-to-date on the latest accounting practices. This can be done by completing continuing education courses.
Meanwhile, if you are looking to become a CA, here are some specific qualifications to be aware of:
1. Educational Requirements
Depending on the country you want to become a CA in will influence the exact educational requirements needed. That being said, expect to need about five years of education (degree or on-the-job/ in-person training), and 2-3 years working towards getting your CA license.
2. Exam Requirements
A CA exam involves an individual successfully passing three main components of the test. When it comes to the specifics in regards to what these three main components are, each country is different. For example, in the United Kingdom, a CA exam’s three main components are: 1) certificate level (6 online tests) 2) professional level (6 written papers) 3) advanced stage (2 integral papers and a case study that details related work experience you’ve done within accounting).
3. Continuing Education Requirements
Depending on the location in which you get your CA license will determine the continuing education requirements. Be sure to research and follow the CA rules on continuing education in your particular country.
Is it possible to become a Certified Public Accountant (CPA) without a degree?
Unfortunately, in the United States, it is not possible to become a Certified Public Accountant or CPA without a degree. Furthermore, you need at least a bachelor’s degree in order to become a CPA within the country.
The good news is that you do not need a bachelor’s degree in accounting specifically to become a CPA. As a matter of fact, in the US, you can become a chartered accountant without a degree in accounting and/or you can learn how to become a CPA without a degree in accounting.
First, we should point out that most states in the US require that you have a bachelor’s degree in accounting to take the Certified Public Accountant exam to get your CPA license. However, as stated earlier in the article, some states like Hawaii, Maine, Alaska, Massachusetts, and Georgia do not require an accounting degree to take the CPA exam.
Next, now that you know you can take the CPA exam without a degree in accounting, you need to ensure you have the proper knowledge and skills to pass this exam.
Create a list of classes you’ve taken previously in college and even high school that may have related to accounting or touched upon on accounting topics. When evaluating this list, make note of what accounting topics you already know, and what topics you need to learn more about. This list will help guide your educational journey toward passing the CPA exam.
Then, research and find various accounting certification courses and additional non-certificate courses you can take either online or in person. These courses will help not only prepare to pass the CPA exam, but fulfill the accounting credit hours requirement (varies by individual state accounting boards) of the exam and build a strong foundation for accounting terms, skills, and concepts that are essential to becoming a successful accountant professional.
Volunteering is another great way to gain valuable experience in accounting to help you pass your CPA exam. Not only is volunteering rewarding, but it can be an excellent way to build real-world experience and skills, especially if you lack accounting experience and/or an accounting degree. Consider volunteering to do administrative tasks at an accounting firm to become familiar/ surrounded with accounting terminology, or volunteer at a local charity that is in need of a staff or junior accountant.
While volunteering at a charity or working a bookkeeping position are both effective ways to gain valuable real-world accounting experience, interning or working at an accounting department is another way to gain the experience essential to not only help prepare for your CPA exam but help you get hired once you pass the exam. While you obviously will not be working as a accountant in the accounting department until you are fully qualified, you can still do certain administrative tasks and other responsibilities related to the accounting cycle that don’t involve you needing your CPA license. This way you can observe professional accountants and familiarize yourself more with accounting lingo and terminology.
Some examples of accounting positions you can work at that don’t require you to have your CPA license yet include working as an accounting clerk or accounting assistant.
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