Master’s in Accounting vs. CPA - Your Guide to Informed Choices

If you're looking to make a name for yourself in the accounting industry, there are two main paths you can take: pursuing a Master's degree in Accounting or becoming a Certified Public Accountant (CPA). Both paths can lead to a prosperous career, but it's essential to consider which one best fits your goals and ambitions.

Read on as we explore the various factors you must consider about a Master's in Accounting vs. CPA before you make your choice. By the end, you should have a clear understanding of the path that aligns with your aspirations and the knowledge to make an informed decision about your future in accounting.

What Is a Master's in Accounting?

The Master's in Accounting is a graduate-level academic program for individuals seeking a comprehensive understanding of accounting. Such programs emphasize analytical methods, critical thinking, and practical application skills through case studies and scenarios.

Master's in Accounting programs include courses such as: 

• Financial Accounting
• Managerial Accounting
• Auditing
• Taxation
• Advanced Accounting
• Accounting Information Systems
• Ethics in Accounting
• Business Law for Accountants
• Financial Statement Analysis
• Cost Accounting

What Is a CPA?

A Certified Public Accountant (CPA) is a qualified accountant who has met the requirements set by the state in which they practice. These professionals are held to ethical and professional standards and are licensed by their state board of accountancy. They offer a wide range of services to individuals, businesses, and organizations, including tax preparation, auditing, financial planning, and consulting.

As a CPA, you have the flexibility to work in various industries, such as 

• Public accounting
• Business
• Government
• Education
• Non-profit organizations

Educational Requirements

Understanding the educational path is a crucial step towards achieving your career goals, so let's take a closer look at the educational requirements for both a Masters in Accounting and CPA certification.

Masters in Accounting

To pursue a Master's in Accounting, candidates generally need a baccalaureate degree or a specific amount of credit hours in accounting. Additional coursework or prerequisites may be required for those with degrees in other areas. Specific educational requirements can vary by program and institution.

CPA 

To become a CPA, candidates must possess a bachelor's degree and meet additional educational requirements. Each state has its standards for the CPA certification. However, most states mandate that prospective CPAs complete 150 credits, approximately 30 credits more than a typical bachelor's degree program.

Career Paths

Another thing to consider is how these two options can influence your career prospects and the opportunities that await you in accounting. So, let's take a look at the careers you can pursue through a Master's in Accounting as well as those as a CPA to help you determine which path is a better fit for your interests.

Master's In Accounting

A Master's degree in Accounting can open up a wide range of career opportunities for you. By obtaining such a degree, you will have the knowledge and skills to succeed in various accounting roles and advance your career.

Upon completing the program, you can opt for a career in public accounting, where you can work for accounting firms providing services like auditing, taxing, and consulting. Alternatively, you can work in private accounting, taking on roles such as financial analyst or budget analyst. As a graduate, you can also seek employment in government agencies or non-profit organizations.

CPA 

One of the most popular career paths as a CPA is working in public accounting firms. In public firms, CPAs perform tasks such as auditing financial records, providing financial consulting services, and preparing tax returns for businesses and individuals.  

However, the career opportunities for CPAs extend beyond public accounting. They can explore roles in various sectors, including industry, government, or non-profit organizations. Moreover, they can specialize in areas like forensic accounting, international accounting, or information technology.

Salary

Along with other factors, including education and career opportunities, salary is one of the biggest considerations to keep in mind. Let's explore what each of these paths has to offer you financially.

Master's In Accounting

Accountants are the backbone of every successful business, ensuring financial records are accurately kept, and tax laws are complied with.

It's no surprise that accountants are highly valued for their skills and knowledge and are compensated accordingly. In the United States, the estimated total pay for an accountant is $72,527 , with average salaries ranging from $58,000 to $91,000 annually.

CPA 

CPAs command higher salaries than Master's in Accounting professionals. Furthermore, CPAs with specialized skills and knowledge in areas like taxation, auditing, or forensic accounting can expect to earn a higher salary than those without such expertise. 

The estimated total pay for a CPA in the United States is $118,589 per year, while average annual salaries range from $90,000 to $157,000.

Benefits

Here's an overview of the benefits that come with pursuing a Master's degree in Accounting or becoming a CPA.

Master's In Accounting

Obtaining a Master's degree in Accounting can provide you with various benefits. Here are some advantages of pursuing this degree.

Multiple career paths: A Master's degree in Accounting can open up various job opportunities, such as external auditors, government accountants, and CFO positions. 

Preparation for accounting certification: A Master's in Accounting program is designed to fulfill the educational requirements to become a CPA and ensures you have the necessary background in accounting and related subjects.

High return on investment: Advanced degrees can lead to higher salaries. With a Master's degree in Accounting, you can qualify for a CFO position with an average salary of $186,326 a year. Financial managers also earn an average of $113,437 a year.

Flexible education options: Earning a Master's degree in Accounting provides flexible options. Many programs offer online classes or a hybrid program, allowing adult learners to continue working while earning their advanced degrees.

Employer assistance: Many employers may offer tuition assistance for employees pursuing a master's degree, especially in finance and accounting. 

Opportunity to distinguish yourself: Having a master's degree can boost your chances of getting a promotion or job opening in your field by demonstrating your skills and dedication.

Networking opportunities: Master's degree programs offer networking opportunities in accounting that can lead to career opportunities. Alumni networks also provide access to professionals in the field, expanding your network.

CPA 

Now, let's break down the benefits of pursuing a career as a CPA.

Versatility: CPAs have a versatile and globally recognized designation that allows for numerous career opportunities, including climate, forensic, sports, and tax accounting, as well as entrepreneurship, auditing, and education.

Job security: CPAs are still in demand, and the field is fairly secure. Although technology may improve certain aspects of the role, it will more likely complement the CPA skillset rather than replace it entirely.

Growth potential and career development: CPAs must complete 120 hours of professional development every three years to stay up-to-date and increase their earning potential.

Salary: The median annual compensation for CPAs ranges from $90,000 to $157,000 and may vary based on location, experience, industry, and job level.

Prestige: Becoming a CPA is considered a significant accomplishment in accounting due to the rigorous requirements and advanced knowledge and skills it entails.

Masters in Accounting vs. CPA: Which One Should I Choose?

While both options offer unique benefits, deciding between pursuing a Master's in Accounting or becoming a CPA can be overwhelming. 

A Master's degree in Accounting covers a wide range of accounting topics and can be beneficial for professionals seeking career advancement or specialization. On the other hand, becoming a Certified Public Accountant (CPA) involves passing a challenging examination and meeting specific education and experience requirements. However, it can lead to more job opportunities and higher earning potential.

However, did you know you don't have to choose between pursuing a Master's degree in Accounting and becoming a CPA? In fact, getting both can significantly enhance your career prospects. It can make you a more competitive candidate in the job market and open doors to higher-level positions and increased responsibilities within accounting firms, businesses, and other organizations. Therefore, it's worth considering both options if they align with your goals and aspirations.

The Bottom Line

All in all, a Master's in Accounting provides a comprehensive and diverse education, equipping you with a broad skill set to excel in various accounting roles. In contrast, a CPA certification hones in on specific knowledge and skills, preparing you to tackle complex accounting tasks with precision and expertise. With either path or both, you can look forward to an exciting and rewarding career in the dynamic accounting world.

If you're considering your options, we invite you to explore the Master of Science in Accounting program offered by Our Lady of the Lake University. This program provides the skills and knowledge you need to thrive in the accounting industry and achieve your career goals. 

Take the next step toward your future in accounting today!

Frequently Asked Questions (FAQs)

Is a CPA a master's degree?

No, a CPA is not a master's degree. It is a professional certification that requires a specific set of educational and experiential requirements.

Is a CPA the same as an accountant?

A CPA (Certified Public Accountant) is a type of accountant who has passed a specific set of exams and met state-specific education and experience requirements.

Do you need a Master's in Accounting to be a CPA?

You do not necessarily need a Master's in Accounting to become a Certified Public Accountant. However, you do need to meet specific educational and work experience requirements set by the state board of accountancy where you plan to practice as a CPA.

Can I get a Master's in Accounting with an unrelated undergraduate degree?

Yes, it is possible to get a Master's degree in Accounting with an unrelated undergraduate degree. However, some programs require you to take prerequisite courses before starting.

Do you need a master's to be an accountant?

No, a master's degree is not required to become an accountant. However, some employers prefer or require candidates to have a Master's degree in Accounting or a related field. It ultimately depends on the specific job and employer.

Is a Master's in Accounting worth it?

Yes, earning a Master's degree in Accounting can be worth it. It opens doors to more prominent roles with better compensation and equips you with the skills and knowledge to pursue managerial and leadership positions with a median income of six figures.