ACCA or MBA which is better? This question often pops up among commerce students.
At Ikka Classes, we have a proven track record of coaching 1000+ students. With this guide, we are here to help you clear your confusion and make the best decision for your future.
ACCA governed by the Association of Chartered Certified Accountants is a global certification for accounting and finance core students. Whereas, an MBA (Master of Business Administration) is a business degree that encompasses various management disciplines.
The choice of ACCA or MBA which is better is subjective to individual career goals, interest levels, and the industry you want to work in.
Who Should Prefer ACCA Over MBA?
ACCA is preferable to an MBA if :
- You have a strong interest in and deep knowledge of accounting and finance
- You have done B.Com, CA, or any such accounting degree and want to advance your career.
- You cannot afford high fees for an MBA from top-tier institutes
- You have a keen eye for detailing and data analytics for finance
- You are currently working or wish to make a career in audit, tax, and finance over management roles.
Who Should Prefer an MBA Over ACCA?
An MBA is a suitable choice over ACCA if:
- You are a leader at heart and want to work in management roles
- You have an entrepreneurial mindset and want to start your own business
- You don’t come from an accounting background but wish to gain experience
- You can make upfront monetary investments to get into IIMs or tier 1 institutes
- You do not want to limit yourselves to one role and prefer to work in different sectors
What Are The Key Differences Between ACCA And MBA?
Before making a call for yourself on ACCA or MBA which is better, let us understand the key differences between both programs:
Points of Differences | ACCA | MBA |
Definition | ACCA is an internationally recognized certification program for students who wish to pursue accounting and finance roles. | MBA i.e., Management of Business Administration, is a post-graduate degree. It imparts business management knowledge |
Entrance Exams | No entrance exam required | Entrance exams like CAT, CET, or NMAT are needed |
Degree Conferred By | Association of Chartered Certified Accountants | Government or private universities |
Course Duration | 3 years | 1-2 years |
Core curriculum | 13 papers with a core focus on finance, accounting, and auditing | Covers management, marketing, operations, and strategy |
Cost | 1/5th of MBA cost, including exam fees, study material, and coaching institute fees | Approx 40-50 lakh INR at top institutes. Rent, transportation, food, and extra study material fees may add up. |
Global Recognition | Recognized in 180 countries | Depends on the institution’s reputation and the country of practice. |
Networking | Global networking with a diverse community of over 252,500 members. | Networking is limited |
Flexibility | Can be pursued anytime anywhere | Rigid structure with no flexibility. |
Which Qualification Offers Better Salary Potential ACCA Or MBA?
Points of Difference | ACCA | MBA |
Earning Potential | $50,000 – $70,000 globally | $80,000+ globally (higher for top MBAs) |
Salary Trends by Industry | Higher in finance, audit, accounting | Higher in consulting, management, tech |
Career Progression | Great career opportunities in MNCs | Promotions take time with experience |
Regional Salary Comparisons | Starting salary of 5- ₹6 lakhs per annum which can go upto 20 lakhs for senior roles | MBA fresher graduates with minimal experience earn between 3-5 lakhs per annum. |
For in-depth details, check out ACCA Salary In India (Big 4 Earnings, & Tips)
ACCA Vs MBA, Which One To Pursue Based On Career Goals?
Career goals are personal. What may be the best choice for someone else might not be the best for you. So the decision between ACCA and an MBA depends on where you want to go in your professional journey.
- Financial Sector Focus: If you dream of becoming a specialist in accounting, auditing, or taxation, ACCA is the right path. You can be a – Tax consultant, Accounting Manager, Auditor, or Financial Manager.
- Managerial Roles Focus: If you see yourself leading teams, managing businesses, or even starting your own company, an MBA offers a broader scope.
- Industry Preferences: ACCA course is preferred in industries like finance, accounting, and audit. In contrast, MBA graduates are often sought after in industries such as consulting, technology, and corporate leadership roles.
What Are The Biggest Challenges In Studying ACCA Vs MBA?
Course Difficulty: ACCA vs. MBA
Acca has a slightly more competitive course structure than an MBA. It demands technical knowledge of audit and accounting rules. So, content if you don’t have a strong background in these areas, it can be difficult for you to clear the exams.
On the other hand, if you opt for an MBA the course is less technical but more diverse, meaning you need to juggle multiple subjects at once. Students often struggle to balance subjects like marketing, operations, and leadership.
Also, you may need to either take a drop off from work (if you go for a full-time MBA Program) or have to handle the workload with part-time learning. So, while the workload can be heavy, an MBA is more about understanding how businesses run rather than mastering one subject.
Exam vs Projects:
ACCA is heavily exam-oriented. Students must clear ACCA subjects within 10 years. The ACCA exam centres are located everywhere in India. Though the exams are held every quarter, you need coaching to clear ACCA.
In contrast, MBAs focus more on projects, presentations, and case studies. Instead of exams, you’ll work on group projects and solve business problems. These assessments promote critical thinking, creativity, and teamwork, which are essential skills in real-world business.
In short, ACCA focuses on mastering finance concepts, while an MBA teaches how to handle different areas of business. Both programs are challenging but in different ways.
Is ACCA More Difficult Than An MBA?
ACCA is considered more difficult than an MBA. ACCA needs in-detailed knowledge, which can be difficult if you don’t enjoy numbers or financial rules. An MBA covers a wider range of subjects but doesn’t go as deep into any one area. You’ll learn a bit of everything, from managing teams to creating business strategies.
ACCA pass percentage score is also low compared to an MBA. On average, ACCA pass rates range from 33% to 53% for various papers. (Check out the 2024 Pass rates here. )
Whereas in MBA, most students pass, as the program assessments are more varied, and you get more chances to show your skills. However, getting into a top MBA program is hard because of competitive entrance exams and high fees.
Can You Study ACCA And MBA Together?
Yes, you can study ACCA (Association of Chartered Certified Accountants) and MBA (Master of Business Administration) concurrently. An MBA with ACCA not only enhances your professional profile but also helps you earn higher salaries at work.
But to study ACCA and MBA together, you need to have:
- Time Management skills – Both ACCA and MBA programs are intensive. Clearing ACCA requires passing 13 exams, while an MBA involves two-year coursework, projects, and sometimes a thesis.
- Institutional Support – Many universities in India offer flexible learning options, especially for joint master’s degrees with ACCA. Such support helps students manage their workload while studying.
Now, a question that will confuse your mind is which degree to pursue first. MBA or ACCA? If you go fo
- MBA First: You can aim for management roles early. It also makes you business-ready, which can help you when studying ACCA later.
- ACCA First: This path is ideal if you want to specialize in accounting and finance. Also, you can gain practical experience, which is needed in top MBA institutes. That experience can serve your portfolio well if you go for an ACCA.
Usually, it is advisable to go for an MBA after ACCA. Let us understand in detail in the next section below.
Should I Go For An MBA After ACCA?
Yes, you can absolutely go for ACCA first and then an MBA. Here are the top five reasons to convince you:
- Practical Experience Preps You for an MBA – It is not an unknown fact that an MBA is most valuable when pursued from top-tier institutes, and these schools often prefer candidates with some work experience. ACCA gives you practical experience and deep financial expertise.
- ACCA Covers Finance; MBA Adds Leadership – An ACCA professional degree focuses on technical accounting, auditing, and taxation. However, managerial and leadership roles are missing. An MBA covers this gap. Over and above finance, an MBA covers marketing, operations, supply chain, and human resources.
- Escalates Career Progression – ACCA provides the foundation. But an MBA can push you into sectors like consulting, investment banking, and corporate strategy. You can reach senior roles as a CFO, Finance Director, or even CEO.
- High Market Demand for Dual Qualifications – Dual qualifications often lead to higher salary packages. According to the Graduate Management Admission Council (GMAC), 71% of employers offered higher salaries to candidates with both MBA and ACCA. These statistics prove that companies are willing to pay a premium for professionals who bring unique skill sets to the table. They look for individuals who can bridge the gap by combining deep financial knowledge with strategic managment insights.
- International Networking Opportunities – When thinking about ACCA or MBA which is better, both are globally recognized degrees. Infact, ACCA is recognized in 180+ countries. So you can network with peers, professionals, and experts locally and internationally. These connections can be invaluable for career advancement and finding new job opportunities.
Frequently Asked Questions About ACCA Or MBA Which Is Better
ACCA and MBA are both financially rewarding professional courses that complement each other. Choose ACCA if you wish to specialize in core finance and accounting. MBA is more suitable for managerial and leadership roles. Always consider your personal and career objectives before making a decision.
The difficulty level of ACCA or MBA depends on personal interests, knowledge of subjects, and career aspirations. An MBA from a top institute requires a tough entrance exam like CAT, NMAT, or CET to appear. While ACCA has no entrance exam, it still has a tough syllabus that requires extensive knowledge.