Master’s in Accounting vs. CPA: Explaining the Difference for 2025

Co-Founder and Chief Data Scientist

According to the U.S. Bureau of Labor Statistics (2023), employment for accountants and auditors is projected to grow 6% from 2023 to 2033, with over 91,000 new jobs and 130,800 openings each year. This growing need is driven by globalization, regulatory complexity, and the evolving role of accountants as strategic advisors.

For students aiming to enter the field, choosing between a Master’s in Accounting (MAcc) and becoming a Certified Public Accountant (CPA) is a key decision. Each path offers distinct benefits—from advanced academic training to professional licensure and broader authority.

I’ve worked with my team to explore how these two options compare. In this guide, we’ll walk through differences in salaries, job roles, career paths, and the steps needed to succeed in each route.

Master’s in Accounting vs. CPA: Key Points

The U.S. Bureau of Labor Statistics (2023) projects a 6% employment growth for accountants and auditors from 2023 to 2033, with over 91,000 new jobs and 130,800 annual openings.
Accountants in the U.S. earn between $44,935 and $97,583, while CPAs earn more, ranging from $58,376 to $144,858.
Industry significantly affects salary levels, with accountants in finance and insurance earning a median wage of $87,980 in May 2024.

What is a Master’s in Accounting degree?
What is a Certified Public Accountant (CPA)?
Do you need a master’s degree or a CPA license to become an accountant in the US?
What are the admission requirements and coursework for a Master’s in Accounting?
What are the steps to become a CPA in 2025?
What are the career paths and industries for CPAs and Master’s in Accounting graduates?
What is the salary difference between CPAs and those with a Master’s in Accounting?
Are CPAs and accounting graduates in demand in 2025?
How do employers view a CPA license compared to a master’s degree?
Is pursuing an associate degree an effective stepping stone in accounting?
What should you consider when choosing between a Master’s in Accounting and becoming a CPA?
Do the costs justify the benefits of a CPA license versus a Master’s in Accounting?
How do career advancement opportunities differ between a CPA and a Master’s in Accounting?
How are emerging technological trends reshaping accounting careers?
Other Things to Know About Choosing Between a Master’s in Accounting and Becoming a CPA

What is a Master’s in Accounting degree?

A Master’s in Accounting (MAcc) is a specialized graduate degree designed to equip students with advanced knowledge and skills in financial reporting, auditing, taxation, data analytics, and business ethics. It typically takes one to two years to complete and is often pursued by students who have earned a bachelor’s degree in accounting, business, or a related field. Like accelerated MBA programs, a MAcc is structured to combine academic theory with real-world application, helping students build both technical and strategic decision-making skills.

One of the main reasons students pursue this degree is to meet the 150-credit hour requirement for CPA exam eligibility, which is mandated in most U.S. states. Beyond preparing students for CPA licensure, a MAcc also opens opportunities in corporate finance, government agencies, nonprofit organizations, and internal auditing. Many programs now integrate technology and analytical tools to prepare students for the digital future of accounting. For those interested in leadership roles or pursuing a PhD later on, this degree offers both academic depth and professional credibility.

Reflecting its growing appeal, nearly three-fourths of master’s in accounting programs, including those that offer one-year degree programs, saw an increase in applications in 2024, according to the Graduate Management Admission Council (GMAC). This marked the first time since 2020 that more schools reported application growth (72%) than decline (26%), highlighting renewed interest in the degree among aspiring accounting professionals.

What is a Certified Public Accountant (CPA)?

A Certified Public Accountant (CPA) is a licensed professional who has met rigorous education, examination, and experience requirements to earn the most recognized and respected credential in the field of accounting. As of 2024, there are 671,855 actively licensed CPAs (National Association of State Boards of Accountancy, 2024).

CPAs are legally authorized to perform specific tasks that non-licensed accountants cannot—such as conducting audits, filing reports with the Securities and Exchange Commission (SEC), and representing clients before the Internal Revenue Service (IRS).

The CPA license is not a degree but a professional credential that demonstrates trustworthiness, technical expertise, and commitment to ethical standards. CPAs work in a wide range of settings, including public accounting firms, corporate finance departments, consulting firms, and government agencies. It is a career-defining credential that can significantly boost earning potential and career mobility.

Do you need a master’s degree or a CPA license to become an accountant in the US?

You do not need a master’s degree or a CPA license to work as an accountant in the U.S., but each can enhance your qualifications and expand your career opportunities. Most entry-level accounting positions require at least a bachelor’s degree in accounting or a related field. With just a bachelor’s, you can work in roles such as bookkeeper, staff accountant, payroll analyst, or internal auditor. However, more advanced or specialized roles may require additional credentials.

A master’s degree in accounting is often pursued to deepen expertise or fulfill the 150-credit hour requirement for CPA eligibility. Meanwhile, the CPA license is required if you want to perform certain regulated tasks, such as auditing public companies or filing with the SEC. While not mandatory for all accounting jobs, the CPA designation is widely respected and can lead to senior roles, higher pay, and more job flexibility across various industries.

If you are working in the healthcare industry, you would have to decide between an MBA vs MHA. Gauge the pros and cons for each one before you decide.

What are the admission requirements and coursework for a Master’s in Accounting?

Admission requirements for a Master’s in Accounting (MAcc) program vary by school, but most expect a bachelor’s degree, ideally in accounting or business. If your degree is in another field, you may need to complete prerequisite courses in basic accounting, finance, and statistics. Some programs may also require GMAT or GRE scores, a minimum GPA (typically around 3.0), letters of recommendation, a personal statement, and a resume. International students may need to submit additional requirements such as their scores for the Test of English as a Foreign Language (TOEFL) or International English Language Testing System (IELTS).

The coursework typically covers both advanced technical and strategic topics, which are:

Advanced financial accounting. As with online master’s in finance, Master’s in Accounting degrees also cover courses in financial reporting and analysis. This course examines complex financial reporting topics such as consolidations, intercompany transactions, and foreign currency accounting, helping students understand how to apply accounting principles to multi-entity organizations.
Auditing and assurance services. Students learn about the audit process, including planning, risk assessment, evidence collection, and reporting, with a strong emphasis on compliance with professional standards and ethical responsibilities.
Taxation. This subject explores federal income taxation for individuals, corporations, and partnerships, focusing on tax planning, compliance, and the impact of tax laws on decision-making.
Managerial accounting. The course covers how accounting information supports internal management, including budgeting, cost analysis, and performance evaluation to aid strategic planning.
Accounting information systems. Students gain insights into how accounting data is captured, processed, and reported using information systems and emerging technologies.
Business ethics and corporate law. This course examines ethical frameworks, professional conduct standards, and the legal environment in which accountants operate, preparing students for ethical challenges in the workplace.
Data analytics for accounting. Students learn to analyze financial and operational data using modern tools, enabling them to generate insights for business decisions and reporting accuracy.
Capstone project or internship. Most programs culminate in a practical project or internship, giving students hands-on experience and a chance to apply their learning in real-world accounting environments.

These courses aim to prepare graduates not only for the CPA exam but also for leadership roles in public accounting, corporate finance, government, and consulting.

What are the steps to become a CPA in 2025?

Becoming a Certified Public Accountant (CPA) in the U.S. requires meeting specific educational, examination, and professional standards. The process is overseen by several national and state-level organizations that ensure candidates are qualified and ethical professionals. Here are the main steps:

Earn a bachelor’s degree. Candidates must first complete a bachelor’s degree in accounting or a related field. This foundational education is essential for more advanced coursework and professional development.
Complete 150 credit hours of education. Most states follow the Uniform Accountancy Act model, requiring 150 semester hours of postsecondary education, usually met by pursuing a Master’s in Accounting or taking additional coursework beyond the bachelor’s degree.
Apply for and pass the CPA Exam. The CPA Exam is administered by the American Institute of Certified Public Accountants (AICPA) and coordinated through the National Association of State Boards of Accountancy (NASBA).
Pass the CPA Exam within 18 months. The CPA Exam consists of four sections: three core exams (Auditing and Attestation, Financial Accounting and Reporting, and Regulation) and one discipline of your choice (e.g., Business Analysis and Reporting). Each section must be passed within an 18-month window once the first section is passed.
Gain professional experience. Most states require one to two years of supervised work experience in accounting. This experience must typically be verified by a licensed CPA and may include work in public accounting, industry, or government.
Meet ethics requirements. Some states require candidates to pass an ethics exam or complete an ethics course approved by the state board of accountancy.
Apply for CPA licensure. Once all education, exam, and experience requirements are met, candidates can apply to their state board for licensure. This often includes a background check and payment of applicable fees.
Maintain your license through continuing education. After becoming licensed, CPAs must complete Continuing Professional Education (CPE) annually or biannually to keep their license in good standing and stay current on accounting standards and laws.

Your choice of discipline in the CPA Exam plays a key role in shaping your career path by aligning your knowledge and skill set with specialized areas in the accounting profession. Although all three disciplines—Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP)—lead to full CPA licensure, choosing one that fits your interests and long-term goals can enhance your competitiveness and open doors to specific roles in audit, tax, or tech-driven financial services.

Based on the chart below, in the fourth quarter of 2024, candidate selections reflected a strong preference for tax specialization, with 40.5% choosing the Tax Compliance and Planning (TCP) discipline. Meanwhile, 32.4% of candidates opted for Business Analysis and Reporting (BAR), and 27.2% selected Information Systems and Controls (ISC), indicating a balanced but slightly higher interest in traditional tax and reporting roles over tech-related fields.

What are the career paths for CPAs and Master’s in Accounting graduates?

Graduates with a Master’s in Accounting and those who go on to earn CPA licensure have access to a wide variety of career paths across numerous industries. While both credentials open doors to accounting and finance roles, becoming a CPA typically leads to more advanced or specialized positions, particularly in public accounting, auditing, and regulatory fields. The following are some of the careers that both CPAs and Master’s in Accounting graduates can pursue:

Roles for CPAs

Public Accountant. This role typically requires a CPA license, especially in firms offering auditing, tax, and advisory services to clients. CPAs in this field are qualified to sign audit reports and perform regulated tasks that non-licensed accountants cannot.
External Auditor. A CPA license is required for those conducting official audits of public or private entities. CPAs in this role ensure financial statements comply with regulatory standards and are free from material misstatements.
Forensic Accountant. A CPA license is often required or highly preferred for forensic accountants, who investigate financial discrepancies, fraud, or litigation-related cases using accounting and legal expertise.
Controller. This senior accounting position is usually held by CPAs, particularly in large organizations. Controllers oversee accounting operations, enforce financial controls, and ensure regulatory compliance in financial reporting.

Roles for Both CPAs and MAcc Graduates

Corporate Accountant. This role is open to both CPAs and Master’s in Accounting graduates. Corporate accountants manage financial transactions, prepare financial statements, and support internal financial processes within private companies.
Internal Auditor. Suitable for both CPAs and MAcc graduates, internal auditors assess and improve the effectiveness of internal controls, risk management, and compliance within organizations.
Tax Advisor or Consultant. While both MAcc graduates and CPAs can work in tax planning and preparation, CPA licensure is required for representing clients before the IRS and is often preferred for complex tax advisory roles.
Financial Analyst. Typically held by MAcc graduates, this role involves analyzing financial data to support budgeting, forecasting, and business strategy. CPAs may also work in this field, especially in corporate finance.
Compliance Officer. Open to both CPAs and MAcc graduates, this position involves monitoring and ensuring that an organization adheres to financial regulations, legal standards, and internal policies.
Chief Financial Officer (CFO). While not always required, a CPA license is strongly preferred for CFO roles, especially in publicly traded companies. CFOs manage the organization’s overall financial strategy and reporting.
Accounting Manager. Both CPAs and MAcc graduates can qualify for this position, which involves leading a team of accountants, ensuring accurate recordkeeping, and preparing financial reports for management.

Professor or Lecturer in Accounting. If you're wondering, "What degree do you need to be a college professor?" Well, some schools require instructors to have a master's degree that is relevant to the subject you want to teach. So, if you are interested in teaching, curriculum development, or research in accounting and finance at colleges or universities, this academic role is well-suited for MAcc graduates.

What is the salary difference between CPAs and those with a Master’s in Accounting?

A bachelor’s or master’s in accounting is among the best online degrees that pay well. According to Indeed, the salary of an accountant in the US is between $44,935 to $97,583. Meanwhile, CPAs earn between $58,376 and $144,858. In the US, a Chartered Accountant (CA) is essentially the same as a CPA. And as per Salary.com, chartered accountant salary is $68,855 to $83,737 per year.

CPAs tend to earn higher salaries, particularly as they progress to senior or managerial positions. The CPA credential is highly valued, especially in industries with strict regulatory requirements like finance, healthcare, and public accounting.

While MAcc graduates can still earn competitive salaries, CPAs are often more qualified for leadership roles (e.g., Audit Manager or Director), which can lead to higher pay and greater job stability. Besides these, there are other factors that influence salary levels:

Geographic Location. Salaries are generally higher in large metropolitan areas or states with high living costs like California, New York, and Massachusetts.
Years of Experience. Professionals with more years of industry experience tend to earn significantly more, regardless of certification.
Company Size. Larger firms and multinational corporations often pay more due to greater responsibilities and budgets.
Additional Certifications. Credentials like CMA (Certified Management Accountant), CIA (Certified Internal Auditor), or MBA degrees can increase salary potential.
Job Role and Title. Higher-level roles like Senior Auditor, Controller, or CFO come with significantly higher compensation.
Industry or Sector. Jobs in sectors such as finance, insurance, and consulting typically offer higher compensation than non-profit or government roles.

If you are working in healthcare and are considering pursuing an MBA in the field, look into "salary after MBA in healthcare management" and see how it will improve your earning potential.

Industry plays a major role in determining an accountant’s salary, with finance and insurance offering the highest median wage at $87,980 in May 2024, as per the chart below. Accountants in corporate management ($86,010) and government ($81,120) also earn competitive salaries, while those in accounting and payroll services ($80,510) earn slightly less. These differences reflect the varying levels of complexity, responsibility, and regulatory demands across industries.

Are CPAs and accounting graduates in demand in 2025?

Both Certified Public Accountants and accounting graduates remain in high demand in 2025. The profession is experiencing a significant talent shortage, driven by factors such as retirements, declining enrollment in accounting programs, and evolving business needs.

The U.S. Bureau of Labor Statistics projects a 6% growth in employment for accountants and auditors from 2023 to 2033, outpacing the average for all occupations. Approximately 130,800 job openings are expected annually, primarily due to workforce attrition and retirements.

A key factor driving this demand is the aging workforce. Many accounting professionals are approaching retirement age, and a recent survey found that 20% of firms expect more than half of their CPAs to retire, with the average anticipated retirement rate across firms at 30.5%.

In response to shifting workforce expectations, firms are also adapting their work environments. According to the same survey by Canopy and CPA Practice Advisor (2024), 67% of firms currently offer remote or hybrid work options, and 35% plan to expand these offerings in the near future.

How do employers view a CPA license compared to a master’s degree?

Employers generally view the CPA license as a mark of professional credibility, technical competence, and commitment to the accounting field. It is often considered the “gold standard” for accounting roles, particularly in public accounting, auditing, and tax-related positions. The CPA credential signals that a candidate has passed a rigorous examination, met education and experience requirements, and is licensed to provide services to the public—giving employers confidence in their qualifications and integrity. For roles requiring high regulatory compliance, CPAs are frequently prioritized over non-licensed candidates.

On the other hand, a master’s degree in accounting (MAcc) is highly valued for the advanced academic foundation it provides in areas like financial reporting, taxation, data analytics, and ethics. Employers often seek MAcc graduates for entry- and mid-level positions, especially in corporate accounting, consulting, and government roles. While a MAcc alone doesn’t carry the legal authority of a CPA, it demonstrates a strong commitment to the field and can serve as a pathway toward CPA eligibility.

The 2024 GMAC survey of corporate recruiters shows a strong global demand, with 40% of employers worldwide planning to hire more MAcc degree holders than in the previous year. As illustrated in the chart below, finance and accounting firms lead the demand at 41%, highlighting the value of specialized accounting skills in industries where compliance, reporting, and financial strategy are critical. While interest is slightly lower in sectors like technology (27%), manufacturing (29%), and products and services (24%), these figures still reflect a broad recognition of the MAcc as a versatile and valuable credential across various fields. The data suggests that MAcc graduates have diverse career options, with the highest demand concentrated in traditional accounting-intensive industries.

Is pursuing an associate degree an effective stepping stone in accounting?

A focused associate degree in accounting can offer a cost-effective foundation for understanding core principles and technical skills essential in today’s financial landscape. This educational alternative equips students with practical experience and transferable credits, enhancing their readiness for advanced credentials without the extensive upfront investment associated with traditional undergraduate programs. For those evaluating early pathway options, exploring affordable online accounting associate degrees may provide a strategic advantage in establishing a robust career profile.

What should you consider when choosing between a Master’s in Accounting and becoming a CPA?

Deciding between pursuing a Master’s in Accounting (MAcc) and becoming a Certified Public Accountant (CPA) is much like choosing between MEng vs MS (Master of Engineering vs Master of Science in Engineering). It's important to evaluate your career goals, eligibility, timeline, and desired specialization in order to make the right decision. Both credentials can enhance your opportunities in accounting, but they serve different purposes and lead to different paths.

If your goal is to become licensed and provide services like auditing, tax preparation, or consulting in public accounting, then the CPA credential is essential. It is a legally recognized qualification and often a requirement for roles in accounting firms and regulatory bodies. In contrast, an MAcc offers academic depth and may be better suited for those aiming for corporate roles, government positions, or those who want to meet the 150-credit requirement to sit for the CPA exam.

Just like in deciding between two very related careers, such as becoming an EMT vs MA (medical assistant), you should also consider the time and financial investment. Earning an MAcc typically takes one to two years, while CPA licensure involves studying for and passing four rigorous exams, gaining work experience, and fulfilling state-specific requirements.

Additionally, your current qualifications play a role. If you already meet the CPA educational requirements, pursuing licensure directly may be more practical. However, if you're short on credits or want to strengthen your knowledge before taking the CPA exam, enrolling in an MAcc program can help bridge that gap.

In short, your decision should be guided by the type of accounting work you want to do, your readiness to meet CPA requirements, and whether you prefer academic study or professional certification.

Do the costs justify the benefits of a CPA license versus a Master’s in Accounting?

When evaluating these two paths, consider both direct and indirect financial factors. Examine tuition fees, examination costs, study materials, and any additional expenses required to achieve certification or complete the degree. Equally important, assess opportunity costs such as time away from full-time employment and the potential salary boost associated with each qualification. Analyze long-term returns by factoring in job stability, accelerated career trajectory, and increased earning potential over time. For comparative insights on educational affordability, explore the cheapest online accounting degree.

How do career advancement opportunities differ between a CPA and a Master’s in Accounting?

Professional growth and leadership trajectories diverge between the two pathways. CPAs frequently gain access to roles with legal and managerial authority, particularly in public accounting and regulated sectors, whereas Master’s in Accounting graduates often move into strategic positions within corporate finance, consulting, or academia. Both credentials ultimately expand career prospects; however, CPAs tend to command roles that demand ongoing professional development and regulatory expertise, frequently positioning them for highest paying accounting jobs, while MAcc holders leverage their advanced academic training to address complex financial challenges in evolving business environments.

How are emerging technological trends reshaping accounting careers?

Digital transformation is redefining the skill sets required in accounting. Automation, advanced data analytics, and cloud computing are increasing the demand for professionals who can integrate technology with financial expertise. This shift not only enhances traditional roles but also creates opportunities in interdisciplinary fields that merge accounting with innovative business practices. Professionals with either credential are expected to build technological proficiency to stay competitive. Furthermore, expanding career pathways now include roles that combine analytical finance skills with entrepreneurial insight, as seen in our article on careers for entrepreneurship majors.

Key Findings

There are 671,855 actively licensed CPAs as of 2024.
40% of employers worldwide are planning to hire more MAcc degree holders in the coming years.
The finance and insurance sector is the highest paying sector for MAcc graduates and CPAs in the US, offering a median annual wage of $87,980.
There is a projected 6% growth in employment for accountants and auditors from 2023 to 2033. This translates to 130,800 job openings annually for both MAcc graduates and CPAs.
The salary of an accountant in the US falls between $44,935 to $97,583. Meanwhile, CPAs can yield higher salaries between $58,376 and $144,858.

Other Things to Know About Choosing Between a Master’s in Accounting and Becoming a CPA

Is a CPA license recognized internationally?

Yes, the U.S. CPA license is recognized in several countries, especially those with mutual recognition agreements like Canada, Australia, and Hong Kong. However, CPAs may still need to meet additional local requirements to practice in those jurisdictions.

Is the US CPA Exam hard?

The CPA Exam is known for its difficulty, with historically low pass rates for some sections. It tests advanced knowledge across accounting, auditing, regulation, and your chosen discipline, requiring strong preparation and commitment.

Do master’s in accounting programs help prepare for the CPA exam?

Yes, most MAcc programs are designed to align with CPA exam content and help students meet the 150-credit requirement. Many programs include coursework and resources specifically tailored to support exam readiness.

What is the highest position in accounting?

The highest position in accounting is typically the Chief Financial Officer (CFO), who oversees a company’s entire financial strategy. Other top roles include Controller, Partner at an accounting firm, and Chief Accounting Officer (CAO).

References:

Bureau of Labor Statistics. (2024). Accountants and auditors. U.S. Department of Labor. https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm#tab-1

GMAC. (2024). Application trends survey 2024. Graduate Management Admission Council. https://www.gmac.com/-/media/files/gmac/research/admissions-and-application-trends/2024_ats.pdf

Indeed. (n.d.). Accountant salary in United States. https://www.indeed.com/career/accountant/salaries

Indeed. (n.d.). Certified public accountant salary in United States. https://www.indeed.com/career/certified-public-accountant/salaries

NASBA. (n.d.). CPA exam candidate performance: Q4 2024. National Association of State Boards of Accountancy. https://nasba.org/blog/2025/02/19/q4-cpa-exam-candidate-data/