Having the right financial team is crucial for a business’ success. But the accounting world is like navigating the alphabet soup of credentials. CPA? CA? ACA? CMA? These acronyms can be incredibly confusing and require thorough research to comprehend. This article will cut through the jargon and answer: CA vs CPA, what’s the difference?
We’ll primarily focus on the difference between a Chartered Accountant (CA) and a Certified Practicing or Public Accountant (CPA) as we continue. This article simplifies things by focusing on these two prominent designations on both a local (specifically in Australia) and international level. We’ll break down their key differences, areas of expertise, and how each can best serve your specific business needs. As the accounting industry shifts, we’re here to keep you informed. Whether you’re a startup or a seasoned organization, this guide should help you make an informed decision in building your perfect finance team.
Which is Better for Your Business?
Choosing between a CA and a CPA depends on your specific needs, and where they’re from. Though both are highly qualified accountants, their areas of expertise can vary.
While “accountant” is a universal term, qualifications and titles can vary significantly by country. Even though designations like CPA or CA might exist elsewhere, their specific meanings and requirements will differ.
To know which is best for your business, let’s review how CA and CPA are defined on a local and international level.
CA vs. CPA: On a Local Level
Let’s take a look at the differences between the CA vs CPA on a local (Australian) level.
| Aspect | Chartered Accountant | Certified Practicing Accountant |
| Focus | Think: problem-solving and financial intricacies. They lean towards the technical aspects of accounting, and they dive deep into complex tax issues and auditing. | They offer a broad perspective, merging accounting and business management. They contribute to business strategies by offering a financial perspective. |
| Role | They specialize in areas like tax or auditing, ensuring that your finance teams stay compliant. | These professionals frequently hold senior or leadership positions, where they leverage their extensive knowledge of business finance to provide strategic guidance. |
| Ideal For | Businesses that need strong audit, tax, or compliance expertise. | Businesses that seek a well-rounded financial advisor who can handle day-to-day accounting and provide strategic guidance on financial planning, budgeting, and profitability. |
Both offer incredible benefits to your team, but it will always depend on what your business currently needs.
CA vs. CPA: On an International Level
Thinking about building an offshore accounting team to maximize cost and efficiency? Understanding international accounting credentials is an essential first step.
While countries like Australia, and the Philippines may all have CPA designations CPA, the specific requirements and areas of expertise can vary.
Australia. Here, CPA stands for Certified Practicing Accountant. As there are at least 6 years of experience required before taking the license, this certificate is proof that the accountant is trusted in their field.
The Philippines. CPA also stands for Certified Public Accountant in the Philippines. They typically complete a four-year college degree program encompassing the same core accounting subjects as their international counterparts. After 18 months they can take the CPA Licensure Exam (CPALE).
Due to their critical role in ensuring tax and audit compliance, CAs face strict regulations in some countries, like Australia or the UK. In contrast, countries like the Philippines and the United States see CPAs as the primary licensed professionals, and don’t require chartered certification to practice tax and audit compliance.
In the Philippines, CPAs handle the same tasks CAs do in other countries. Because CPAs are the main credentials for accountants, they go through a tough examination process and have strict rules to follow to make sure they’re doing everything perfectly.
In Summary – What’s the Difference Between a CA and a CPA?
Locally (Australia):
Think of a CA’s qualification as laser-focused. They gain in-depth knowledge of the specific tax and audit rules in their location, like Australia. This makes them experts for that particular country.
On the other hand, a CPA’s license is like a testament to their broader accounting experience, hence the minimum, 6 years of experience for the licensure examination.
Internationally:
In some places, like Australia, there are distinct designations for CPA and CA, reflecting a separation of specializations within the field.
Other countries have a single CPA designation, encompassing the combined skillset and resulting in a more rigorous overall accounting qualification.
Offshoring Certified Public Accountants in the Philippines
Businesses from Australia to the US build offshore accounting teams and work with offshore accountants due to the highly skilled workforce and strict accounting standards. The Philippines boasts a strong pool of incredible CPAs, overseen by the Professional Regulation Commission to ensure that they meet the same high standards as their international counterparts.
As the primary licensure designation, the CPA certification encompasses a broad range of accounting disciplines. The demanding CPALE reflects this, with a challenging passing rate of 30.27% in 2024. To prepare for this rigorous exam, graduates typically dedicate the 18 months following graduation to intensive study.
Of course, the dedication to their profession is only one of the reasons why the Philippines has become a hub for building offshore accounting teams:
- Cost-Efficiency. With the reduced overhead and labor costs, offshoring in the Philippines is an incredibly accessible strategy for businesses.
- Support from Global Expertise. Businesses can tap into a global workforce of experts, with diverse backgrounds and perspectives,
- Scalability. You will have the flexibility to scale your resources up and down to meet market demands.
- Offshore Partner. HGS OSS isn’t just an offshore provider, we are also your partner. Our goal is yours, dedicated to seeing your ideas flourish and succeed through dedicated offshore support.
Ready to build a highly skilled offshore accounting team with qualified certified public accountants? Then contact HGS OSS today.
Citations
HGS Offshore Staffing Solutions. “Accounting in the 21st Century: New Advancements in the Industry.” HGS OSS, 21 Feb. 2024, hgsoss.com/newsroom/industry-focus/accounting-in-the-21st-century-new-advancements-in-the-industry/.
Manila Bulletin. “Century of Accountancy in the PH: Salute to 100 Outstanding CPAs.” Manila Bulletin, 22 Mar. 2023, mb.com.ph/2023/3/21/century-of-accountancy-in-the-ph-salute-to-100-outstanding-cp-as.
