ACCA vs CA

[kams]

Which is better CA (from ICAP) or ACCA?

Folks, I have lived half of my life in Pakistan and the other half in England and Canada. I am a CA (but from ICAEW) but I now live in Pakistan, so I feel I can provide practical advice based on what I have seen in Pakistan and overseas.

Asking whether CA (from ICAP) is better than ACCA, or vice-versa is like asking which is better "Ferrari as a car" or "the Pyramids of Cairo as an architectural masterpiece". Two simple short answers are BOTH and NEITHER!!!

The long answer is that it depends on your circumstances and your future plans.

CA (from ICAP) is really only worthwhile if

1. You feel that you have a future in Pakistan. CAs hold many high positions in Pakistani CA firms, banks, industry, etc. Overseas, the Pakistani CA qualification has limited value in its own right. If you plan to go abroad then you will need either that particular country's own qualification, which you can either pursue from the beginning by immediately moving to that country or by upgrading your Pakistani CA qualification to that particular country's qualification.

Unfortunately, upgrading is not easy as Pakistani CAs get very few exemptions from overseas accounting bodies such as the ICAEW in England or the CICA (Canadian Institute of Chartered Accountants) and CGA (Certified General Accountant) of Canada. Getting exemptions is only part of the problem - you will also need to gain local work experience so that you can meet the work experience criteria of the overseas accounting body. Believe me, this is the hardest part as almost all employers will be reluctant to employ someone with overseas work experience.

The CA training (articles) that you receive in Pakistan will be completely wasted and will count towards nothing. You will need to start all over again.

2. You are prepared to work (get trained by a Pakistani CA firm) for a salary that is really next to nothing for the next 3 or 4 years in the hope that the eventual CA qualification will bring greater rewards in the future. If you fail the exams and eventually give up then you would have worked like a dog and earned peanuts. The only winner will be your employer!

3. If UNLIKE the vast majorirty of Pakistani students, you accept the fact that "the grass is not always greener on the other side" and from the onset you aim to build a future in Pakistan rather than dream about overseas, where life can be very tough if you don't succeed in your plans.

ACCA is only worthwhile if

1. You plan to move abroad or to work in industry or banking in Pakistan. Even then, I suppose Pakistani industries and banks would prefer CAs from Pakistan due to their local knowledge of Pakistani laws, etc. I have never sought employment in Pakistan, so I am not 100% sure regarding this. I suggest you obtain career advice.

2. You have the commitment to undertake 3 years of work experience during or after passing your ACCA exams. Passing ACCA exams on their own and not gaining any work experience will not enable you to call yourself a fully qualified ACCA.

3. If you move to a country other than UK, then the ACCA you have gained in Pakistan may not be attractive to overseas employers because the tax and law papers you would have passed would have been for the English variants.

In my last two years in Pakistan, I have seen the ACCA qualification growing rapidly. There are ACCA training centres at around every street corner, but I ask myself "what will all these ACCA qualifieds do after they become ACCAs?".

UK has thousands of ACCAs, CIMAs and local CAs (ICAEW members). Canada and Australia too have loads and loads of ACCAs as well as their own CAs. Employers in these countries ONLY and I again say ONLY select those candidates who have local experience. For each vacancy, there are several candidates, most of whom have local experience, so why would these employers offer a job to an ACCA that has Pakistani experience? All this is notwithstanding the problem of obtaining work permits, etc. That is another big hassle, and is something that overseas employers avoid.

ACCA is the same qualification whether undertaken in Pakistan or abroad, but the work experience that is required to go with it is NOT. Pakistani work experience will be good enough to gain you membership of the ACCA but for overseas employment purposes it is useless, unless you first work in Pakistan for a multi-national such as a foreign bank who then transfers you overseas.

In view of the above factors, particularly the need for local work experience, I would say that with the ACCA you are more likely to find work in Pakistan than abroad, but then if you are to work in Pakistan then why not go for CA which is more acceptable to Pakistani employers? But then with CA, the pass rates are poor and unlike ACCA, a student needs to work (for peanuts wages) and study at the same time, which can be very demanding.

Have I confused you more? Sure I have!

The long term aim for you is not whether CA or ACCA is better but whether you can find professional work and have a healthy future. My advice is that it is best to study for O and A levels in Pakistan and then go abroad and do a University degree overseas. Forget these accountancy qualifications. Whether you do a BA or a BBA or a BSc or MBA does not matter as long as the University is recognised. Bogus Universities based in Pakistan but with "so called affiliations" with private money making overseas Universities must watched out for! Be careful! Once you have an overseas degree with a recognised university, you can study further and do overseas CA or the same ACCA but outside Pakistan. Employers hire directly from Universities and this makes life much more easier compared to job hunting. If you can afford this route, then it will be much more beneficial compared to having passed ACCA exams in Pakistan but being without the requisite work experience.

I hope the above helps.

Regards,

Kamran S, ACA, CPA