According to compensation projections by the National Association of Colleges and Employers (NACE), the predicted average starting salary for MBA graduates in 2020 will be $79,043 annually. However, this is contingent upon the state, experience and what kind of MBA is earned. The CPA is a cpa vs mba salary designation earned through a standardized and widely recognized certification exam and licensure program. Achieving licensure allows accounting professionals to demonstrate their knowledge in auditing, tax law, financial reporting and other aspects of public accounting to become a CPA.
Eligibility or Experience Required
A CPA designation is renowned for its rigorous standards and comprehensive coverage of accounting, tax, and financial management principles. This certification equips professionals for a variety of specialized roles across different sectors. I no longer work in accounting but am an expert on how to help other accounting professionals become CPAs.
Accounting Salary Ranges
However, it should be noted that the fees for an MBA degree vary across colleges based on their location, program, faculties, and various other factors. In the US, a CPA-certified professional’s median salary is around $68,000, with the bottom 10% drawing a salary of around $49,000 while the top 10% earning more than $113,000 . On the other hand, an MBA graduate in the US draws an average salary of around $89,000 . Certified public accountants are in demand and often more educated than general accountants, but they work long hours, especially during tax time, if they work in taxation.
- Often college students find it difficult to choose between a CPA license or an MBA degree.
- According to research from the Forté Foundation, the average MBA salary after three to five years is between $151,951 and $172,469.
- Post-MBA, Neel went on to work in strategy with Roger Nelson, who ramped up Ernst & Young’s consulting practice.
MBA Degree Salary: 2024 Guide
Get the latest news you need to know, from study hacks to interview tips to career advancement. The CPA and the MBA, while serving different purposes on the way toward a career in accounting, do have some commonalities and can both be beneficial when it comes to career advancement. The CPA, or Certified Public Accountant designation, is the most common certification in accounting and one of several other accounting certifications you should explore. The information presented here is true and accurate as of the date of publication. DeVry’s programmatic offerings and their accreditations are subject to change.
School attended
In addition, as you encounter various obstacles in your business journey, an MBA can help you to adapt to your changing circumstances. This is because as you earn an MBA, you learn how to think creatively and critically. Critical thinking involves examining a situation from multiple perspectives, ascertaining solutions, and evaluating the pros and cons of each. Regardless of the business challenge you face, as an employee or an entrepreneur, the critical thinking skills that come with an MBA can give you an edge over your competition. See how the schools you’re considering fared in Fortune’s rankings of the best part-time, executive, full-time, and online MBA programs.
MBA Graduates
Once licensed, CPAs are the only individuals who can complete the required audits at public companies. An important difference between an average accountant and a CPA is that only the latter can write up an audited financial statement. This is an important reason why CPAs are in demand at large companies that need to provide audited statements. An MBA offers many opportunities for those seeking leadership roles in various business sectors.
Do you plan to work for an accounting firm and ultimately open your own practice? Taking the time to answer these questions can help you narrow down which option will serve you best as you head down your chosen career path. UNC Kenan-Flagler’s top-ranked online MBA is designed for experienced professionals looking to take their career to the next level. Students have access to lifelong career benefits and a global network of 51,000+ business school alumni.
Usually, CPA-certified professionals develop a knack for crunching numbers as their day-to-day job involves reviewing a large volume of accounting details. On the other hand, MBA graduates develop the ability to work under short turn-around times and handle pressure while also developing strategic thinking. This post-MBA salary is noticeably greater than even the highest reported average MBA salary, $144,956 per the Forté Foundation, in part because full-time MBA candidates typically average around five years of work experience. Generally, local cost of living and local industry demand are two factors that may impact salary. Of course, a CPA’s experience and education make a big difference in how much they earn.
As is with most career advice, professionals who have a CPA and MBA have mixed opinions on the value of having both. Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact… Start taking courses for free through specializations in Digital Marketing, Strategic Leadership and Management, Financial Management, and more.
This was one of my main considerations when deciding whether to attend business school or focus on a CPA designation. For many business professionals, going back to school for a graduate degree seems like a good way to advance their careers. If you already have a Bachelor of Science in Accounting, you could choose to earn a Master of Business Administration (MBA), whereas others might decide to become a certified public account (CPA). According to the Executive MBA Council, EMBA candidates enter their programs with an average of over 14 years of work experience, including just under nine years of management experience. By the end of their program, graduates reported an average salary (including bonuses) of $190,989, up from an average of $166,549 at the start of their program [7].