Hiring a CPA versus a CA
Before you think about who to hire for your finance vacancy, you need to know what different accounting qualifications there are in Australia.
On the one hand, there are university degrees, such as a Bachelor of Accounting, and on the other hand, there are professional qualifications. These are a more hands-on route and are typically desired by employers.
Let’s look at the two major professional accounting bodies in Australia – CPA Australia and Charted Accountants Australia New Zealand (CA ANZ) – and the qualifications they offer:
What is a CPA?
CPA stands for Certified Practising Accountant and is the professional qualification offered by CPA Australia.
As one of the world’s largest accounting bodies, CPA Australia has 170,826 members in over 100 countries as well as 19 offices around the world.
The CPA program and prerequisites
The CPA training program combines theoretical and practical experience and provides participants with an understanding of the issues organisations face on a daily basis.
Applicants to the CPA program must:
- have at least 36 months of work experience
- hold a recognised degree that is comparable to an Australian bachelor degree (which can be completed alongside the CPA program).
What CPAs will know
When hiring a CPA, you can expect them to have expert knowledge in the following areas, which are taught as compulsory subjects during the course:
- ethics and governance: applying ethical principles and the key corporate governance concepts and mechanisms
- financial reporting: applying accounting standards, interpreting financial reports and understanding their impact on the business
- strategic management accounting: knowledge of how management accounting provides data critical to decision-making processes in the company
- global strategy and leadership: using strategic analysis to address complex business issues in a competitive and uncertain business environment.
In addition to these topics that all CPAs will become familiar with as part of their training, a CPA will also have expertise in at least two of the following elective topics:
- Australian taxation: Understand and apply the fundamental principles of Australian tax law affecting individuals, businesses and investment entities
- advanced Australian taxation: specialist taxation topics, such as tax policy, tax consolidations and international transactions and cross-border tax issues
- advanced audit and assurance: understanding the audit process and applying international standards to complex audits, covering both external and internal audit procedures
- financial risk management: identifying the financial risks facing businesses and knowing how to manage these risks
- contemporary business issues: the role of the CPA in contemporary business and knowledge of how the accounting profession continues to evolve
- digital finance: understanding and navigating the complex world of digital finance.
Typical roles for CPAs
CPAs can work in a wide range of environments, but here are some examples of their most common roles:
- CFO (chief financial officer)
- financial adviser
- staff accountant
- forensic accountant
- risk analyst
- strategic procurement manager.
You may want to consider hiring a CPA for any of those roles if you have an opening in your organisation.
CPA summary
In a nutshell, a Certified Practising Accountant (CPA) is a highly qualified general accountant with a university degree in accounting or a related subject and a qualification issued by CPA Australia.
CPAs are typically considered accounting specialists and expert financial advisers who help companies define their financial goals and devise strategies to meet those goals. CPAs work in all kinds of businesses, from small start-ups to large global corporations.
Related: How to Hire Your First Employee
What is a CA?
CA stands for Chartered Accountant and is the professional qualification offered by Chartered Accountants Australia and New Zealand (CA ANZ), which has more than 130,000 members around the world.
The CPA program and prerequisites
The CA training program comprises a theoretical component leading to the Graduate Diploma of Chartered Accounting (GradDipCA) and three years of mentored practical experience.
To join the CA training program, applicants must meet the following entry requirements:
- meet minimum English language requirements by demonstrating proficiency in English reading and writing
- hold a CA ANZ accredited degree or qualification that is considered to be equivalent to an Australian or New Zealand bachelor degree, and that has covered certain required competency areas, specifically:
- accounting systems and processes
- financial accounting and reporting
- audit and assurance
- business law
- economics
- finance and financial management
- management accounting
- quantitative methods
- tax
- information and communication technology
- business acumen
- or otherwise have completed at least one core subject in the CA Program’s GradDipCA course to meet the competency requirement
As you can see, potential new hires who have completed the CA qualification will be highly skilled experts in their field and be sure to benefit your organisation.
What CAs will know
When hiring a CA, you can rest assured that they will have knowledge in the following areas, which are taught as compulsory subjects:
- ethics and business: knowledge of the ethical concepts and skills required for professional practice
- risk and technology: analysing how businesses create and safeguard stakeholder value
- financial accounting and reporting: acquiring in-depth financial accounting and reporting skills alongside broader business skills
- tax: providing tax advice and related services
- business performance: developing the skills to assess an organisation’s performance and support decision-making
- audit and risk: applying professional skills and judgement to audits and risk analyses
- integrated chartered accounting practice: developing critical thinking skills and expanding technical skills to provide sound business advice.
Chartered Accountants will have also acquired knowledge in two of the following elective topics:
- advanced tax: advanced knowledge of tax matters, specialising in Australian (or New Zealand) tax regulations
- assurance: expanded knowledge of professional skills related to audits and risk
- data analytics and insights: identifying, analysing and communicating business problems using analysis techniques and business intelligence tools
- strategy and performance: devising and implementing value-adding strategies
- advanced financial reporting: expanded knowledge of financial reporting practices
- financial modelling: knowledge of different financial modelling approaches
- sustainability for accountants: understanding the social, environmental and governance impacts on companies.
Depending on the specific requirements of the role you’re trying to fill, it might be worth hiring a Chartered Accountant who has specialised in exactly the right elective topics of the CA program.
Typical roles for CAs
Chartered Accountants can also work in a variety of finance roles, such as:
- auditor
- business services expert
- business valuation specialist
- executive team member
- financial controller.
If you need to fill one of those roles, consider hiring a Chartered Accountant.
CA summary
A Chartered Accountant (CA) specialises in technical tax and accounting matters and typically works in larger companies or groups.
The designation ‘CA’ is reserved for qualified Chartered Accountants who are registered with the Institute of Chartered Accountants Australia New Zealand, which is something you may want to keep in mind when hiring.
Related: How to Find Good Employees
Which is better, CA or CPA?
Whether you opt for a CA or a CPA will depend on your company’s specific business goals and direction.
Both CAs and CPAs are highly qualified accountants who adhere to a stringent code of conduct. While CAs tend to focus more on the technical aspects of accounting and deal with complex tax issues, CPAs are more involved in the overall processes of accounting and business management from a more holistic perspective.
One thing is certain, though: any accountant with a CA or CPA designation will be an asset to your business. Hire your next accountant on Indeed today!
Now you know more about accounting qualifications in Australia and can confidently decide whether you need to hire a CPA or a CA (or both!) to handle your organisation’s finances.
Read more: Visit our Hiring Resources for Employers page when you’re ready to start recruiting.
