The CPA designation is widely recognised globally and can help open doors to new career opportunities and advancement. Many Indian employers actively seek out CPA-qualified candidates and are willing to pay a premium for their skills and knowledge.
No wonder, the CPA certification is becoming popular and the credit goes to the growing number of global capability centers (GCCs) of MNCs in India – currently at 1,700 and expected to cross 2,000 by 2025.
According to Becker, a training company that prepares those who want to write accounting examinations, in 2023, as many as 5,286 candidates from India took the CPA Exam, up from just 1,392 in 2019.
As CPAs know the nitty-gritty of US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), the Big 4 accounting firms (Deloitte, EY, PwC, and KPMG) that offer accounting, taxation, and auditing services to clients globally, value CPAs, besides MNCs.
CPAs can represent companies before the US IRS (Internal Revenue Service), conduct external audits, SOC audits, and SEC reporting, something which non-CPA accountants are not trained to do.
The US Certified Public Accountant (CPA) credential is equivalent to the Chartered Accountant designation in India. Becker has close to 50% market share of the CPA exam preparation in the Indian market. Bengaluru, Hyderabad, Mumbai, and Delhi, followed by Pune and Jaipur, are the top cities for CPA test takers.
The CPA exam has four parts: AUD, BEC, FAR, and REG. Each exam has five testlets, and each test is rated on a scale of 0 to 99. The minimum passing score is 75. Prior to 2020, the CPA exam was not conducted in India and students had to go abroad to take the test.
What CPAs do
CPAs are accounting professionals who help businesses thrive by providing services such as tax preparation, financial planning, and financial statements. They can specialise in areas such as business valuation, corporate taxation, and estate planning. CPAs can also specialise in a multitude of services, including: Personal financial planning, information management, forensic accounting, and technology assurance.
What are CPAs known for
CPAs are highly respected by employers and clients, and their qualification is recognised internationally.
How to become a CPA in India
- Check your eligibility: Make sure you meet the academic requirements to take the exam. In India, you can become a CPA if you are a member of ICAI, ICMAI, or ICSI, and have a graduation degree or equivalent. You may also need an MBA or MCom degree.
- Apply to take the exam: Complete and submit the required application forms.
- Study for the exam: Develop a study plan and prepare for the exam. You can take self-study courses through the AICPA to help you prepare.
- Schedule the exam: Once you receive your Notice to Schedule (NTS), book your exam at a chosen location. You have 18 months from passing the first section of the exam to complete the remaining sections.
- Take the exam: Sit for the exam on the scheduled date and complete all sections within the 18-month time limit.
To be Eligible to take the CPA exam in India, you must:
- Have a bachelor’s degree in accounting or a related field
- Have 150 hours of coursework in accounting, business, and other related subjects
- Pass the Uniform CPA Examination
- Have two years of public accounting experience.
To Apply for the CPA exam in India, you can:
- Choose a jurisdiction
- Contact the jurisdiction to get application materials
- Fill out the application
- Send in the application with required fees and documentation
- Receive your Notice to Schedule (NTS)
You can Apply for the CPA exam through:
- Your State Board of Accountancy
- NASBA’s (National Association of State Boards of Accountancy’s) CPA Central portal
You can test in an international location if you:
- Select a participating U.S. jurisdiction
- Contact the Board of Accountancy in that jurisdiction to obtain application materials
- Submit a completed application and required fees.
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The fees for the CPA exam in India include:
- Application fee: $50–$200, depending on the state
- Exam fee: $193.45 per section
- Registration fee: Varies by state, and can be paid for one section at a time or all sections together
- Ethics fees: $63 for one section, $81 for two, $99 for three, and $177 for four
- CPA training fee: Rs. 1,05,000–Rs. 1,20,000
- Evaluation fee: Rs. 20,000–Rs. 30,000
- International testing fee: Approximately Rs. 2 lakh
- You can check your state’s fees on the National Association of State Boards of Accountancy’s (NASBA) website. You’ll also need to make payment on the NASBA website.
How much does a CPA earn in India
A CPA in India can earn anywhere from Rs 6 lakh to Rs 25 lakh per year, depending on their experience and the industry they work in:
- Entry-level: New entrants can expect to earn between Rs 6 lakh and Rs 10 lakh per year.
- Experienced: Experienced professionals can earn between Rs 8 lakh and Rs 15 lakh per year.
- Big 4: CPAs working in the Big 4 can earn between Rs 8 lakh and Rs 25 lakh per year.
- Industry: CPAs working in different industries can earn different salaries, for example, CPAs working in education or training companies may earn Rs 6 lakh per year, while CPAs working in petrochemical companies may earn Rs 12 lakh per year.
