The CPA and MBA credentials are both powerful titles for any resume. But what is the difference between CPA vs MBA? It’s important to understand each credential’s focus, job prospects, timeline, costs, and process to choose the path that best fits your career goals.
Summary
The CPA license is the leading qualification for public accountants, recognizing expertise in general accounting, audit, and tax, while an MBA is a graduate degree certifying expertise in business management and leadership. Both credentials offer career growth, but the CPA focuses on accounting and financial expertise, whereas an MBA is suited for general business administration and organizational leadership.
What is a CPA license?
The Certified Public Accountant (CPA) license is the leading qualification for public accountants. In fact, having a CPA license is the key to growing a career in public accounting—a prerequisite for any upper-level positions. Only CPAs can perform certain accounting tasks and responsibilities, and they’re recognized for their expertise in general accounting, audit, and tax.
What is an MBA degree?
A Master of Business Administration, MBA, is a graduate degree which certifies your expertise in business management and leadership in general, rather than specifically in accounting and finance.
How to become a CPA vs MBA?
CPA vs MBA prerequisites
Becoming both a CPA and MBA requires that you first earn a bachelor’s degree. However, once you graduate, the prerequisites for each credential differ.
To enter an MBA program, you must apply and be accepted to a specific university’s program. If you don’t take the time to apply or get into a program, there’s no alternative path to becoming an MBA.
Becoming a CPA vs MBA, however, requires that you pass the 4-section CPA Exam and complete experience requirements according to your state board of accountancy.
CPA vs MBA cost
Both the CPA and MBA require financial investment. But the costs are significantly different.
The costs of becoming a CPA varies by state, as they are set by each state board of accountancy. However, the range of expenses is:
- CPA Exam application: Between $20 and $150
- Registration fee per CPA Exam section: Between $40 and $200 per section ($160 to $800)
- Examination fee per section: Between $200 to $300 per section ($800 and $1200 total)
- State application CPA license fee: Between $100 and $500
- CPA ethics exam (some states require): Between $150 and $250
- CPA Exam review course: Between $1000 and $4000
- TOTAL: Between $2,230 and $6,900
While this is no small investment, the costs of an MBA are comparatively much higher, though they also vary by university and location.
- Tuition: A wide range of rates with higher costs for higher-ranked schools. The one-year tuition for Harvard’s MBA program is $76,410.1
- Textbooks, materials, university fees, etc: Required fees for university programs, student resources, and materials and textbooks for your courses can incur major fees. Harvard estimates an additional $8,444 of required fees, which doesn’t include housing, food, and transport (upwards of an additional $30,000).1
- Loss of full-time salary: If you attend a full-time MBA program, you should factor in the possibility that you will not also maintain a full-time job.
- TOTAL: About $60,000 - $200,000+
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CPA vs MBA process
Becoming a CPA and MBA have differing timelines and processes.
CPA process and timeline
CPA license requirements vary by state, but in general, the process is:
- Passing the CPA Exam: This is a four-section, standardized exam which all CPA candidates must pass before licensure. This is a difficult professional exam that requires study and preparation, but it’s very possible to pass the first time with the right CPA Exam Review.
- Meeting education requirements: Before 2025, all states required that you complete a total of 150 credit hours of higher education (30 hours additional to your bachelor’s degree) before applying for licensure. However, many states are now changing the 150 hour rule, requiring more experience rather than the additional education hours.
- Meeting experience requirements: Depending on your education, you must complete between one and three years of professional experience under the supervision of a licensed CPA.
Some states also require that you pass an ethics exam (minor in comparison with the CPA Exam), and/or be a resident of that state to apply for CPA licensure. Be sure to check with your state board of accountancy for the most updated requirements.
The time to become a CPA varies greatly for each individual, mainly depending on how quickly you pass all four sections of the CPA Exam and if you have to retake any sections. On average, count on 1-2 years to complete the CPA Exam, with anywhere from 2-4 years total for licensure.
MBA process and timeline
The process to become an MBA, likewise, may be different for each university. But you can count on these steps:
- Apply: Each university has a different application process, with the more competitive programs requiring a more rigorous application process. Plan to start applying 6 months to 1 year before the start of the program.
- 1-2 years of coursework and exams: Depending on the type of program, university, etc., you’ll have coursework, exams, thesis, and projects that all count toward the completing of the program and readiness for graduation.
What can you do with a CPA vs MBA?
Both CPA and MBA credentials come with new growth and career opportunities, equipping you with for upper-level management positions and unlimited upward mobility. However, the careers generally associated with each differ when comparing CPA vs MBA.
CPAs are accountants, whether they focus a specialization throughout their career in auditing, management, tax, or another area. In fact, a CPA license sets you up with opportunities for growth in any of these areas, but first and foremost lays the foundation for a career in public accounting. A CPA’s first focus is accounting work, likely beginning at a public accounting firm.
MBAs are qualified professionals in business management and organizational leadership, but not in accounting tasks nor technical financial responsibilities. If your goal is to lead an organization on the administration and management side of the business, an MBA is more fitting. However, if you’re interested in financial management and accounting expertise, a CPA license will likely better support your goals. \
Which should I earn: CPA vs MBA?
Choosing a CPA vs MBA is a big decision and not one to take lightly! There’s no “wrong choice,” but the decision will impact your path to reaching your career goals. If your focus is accounting and growing both your technical skillsets and people management in the accounting and finance space, becoming a CPA will set you on the path to success.
Learn more about the CPA Exam, what it covers, and career paths as a CPA in our free CPA Exam Guide. Find all the support you need to reach your career goals and go even further!
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