Which is better? MBA Finance or CA?

The basic difference that exists between an MBA and CA is the pedagogy. CA stands for Chartered Accountant whereas MBA stands for Masters of Business Administration. A degree in MBA offers an overview of any business and other functions of an organization in a more holistic sense than CA. If you are someone who feels confused about what to choose, an MBA or CA, read this article to get more clarity about the two.

Head to Head Comparison between CA and MBA Finance

1.Skills Obtained

A candidate can approach financial accounting as well as auditing, and gain an in-depth understanding of socioeconomic conditions after completing CA certification. An MBA graduate, on the other hand, gains proficient knowledge of business and develops a strategic bent of mind. Both these courses provide the candidates with great leadership skills, better communication skills, and the ability to handle pressure.

2. Duration

For CA certification, candidates are required to clear 3 levels of examinations along with 3 years of practice in articleship under a practising CA. The entire course can take up to 4 years to complete if a candidate is able to clear all the levels in the first attempt. On the other hand, a full-time MBA takes about 1 to 2 years to complete depending on the choice of a degree program or business school.

3. Eligibility or Experience Required

The eligibility criteria for CA is wider than that for MBA. Any aspirant who has completed high school, graduation or post-graduation can pursue CA. MBA requires an applicant to have completed their bachelor's degree, along with that they are required to clear a CAT (Common Aptitude Test) exam.

4. Syllabus

The syllabus of CA is very much focused on subjects that involve accounting and finance. An aspiring CA candidate has to study Financial Reporting, Financial Account Management, Accounting, Economics, Mercantile Law, Business Law and Ethics, Taxation and Tax Laws, Auditing, etc. On the other hand, the syllabus of an MBA degree covers both theoretical and practical aspects of the business. An aspiring MBA candidate has to study Financial Management, Financial Planning, Risk Analysis, Operations Management, Human Resource Planning, Marketing Research, etc.

5. Career Profile

CA focuses on financial accounting and reporting, business environment and concepts, audit and attestations and regulations. Chartered Accountancy is mainly based on preparing Financial Statements and Accounting. CAs can either start their own practice or choose to work with other Chartered Accountants firms. Almost all big organizations have an account and finance department where CAs can choose whether to work in auditing, taxation, financial accounting or banking.

MBA in Finance mainly deals with Business Finance. It combines theory with various practical teaching methods like case studies, simulations and real-world business projects. These require an individual to analyse business situations holistically. Opportunities after an MBA are plenty both in the government and private sector.

6. Average Salary

The average starting salary for a Chartered Accountant may range from 6 to 7 lakh p.a. Although bigger firms may offer a much higher package, whereas, the average salary offered at top B-schools for MBA Finance graduates is around 15-20 lakh p.a.

7. Job Roles and Prospects

A CA's job might involve taxation, forensic accounting, financial reporting, auditing, business recovery and insolvency, corporate finance, or accounting systems and processes. Some of the major responsibilities of a CA are providing financial advice, reviewing the company's systems and analysing risk, managing financial systems and budgets, undertaking financial audits, advising on tax and treasury issues, maintaining accounting records and preparing accounts and management information for small businesses, etc.

For MBA Finance graduates, there is a wide range of opportunities in mutual funds, insurance, with banks, financial consultancies and other finance-related companies. In the banking domain, one can start their career as a Wealth Manager, Branch Manager, Relationship Manager, Operations Manager, Investment Manager, Loan Manager, Financial Adviser, etc. Whereas in the corporate sector one can be the strategy maker, the corporate-financier and can reach the top as Chief Finance Officer or Finance Head. Other possible openings for an MBA in finance include the roles of investment banker, financial planner, real estate planner, investor relations officer, credit manager, insurance advisor, etc.

Which is better?

In order to decide which is a better option for CA or MBA, it is important to understand that both of these are professional courses and can lead to a successful career in their own unique ways.

The best of either of these professional courses is one of the highest-paid professionals in the country. So, the answer to the question "Which is better?" is whichever suits your career aspirations.