Professional Accounting Courses Vs MBA
The higher education or professional education plays a key role in molding the attractive career growth of any aspiring individual. Be it a graduate or a man of job experience, to have a growth, definitely an updated education has become a necessity wherein skills are sharpened. In such a situation the very prompt option any individual takes in present day world is acquiring an MBA degree to add to his kitty. Any person left and right is an MBA holder now-be it a foreign MBA or a local one. Again this creates havoc. The real talent is not sorted out. Holding a Masters degree in Business Administration is not the ultimate or the only way of career growth. In a world of MBA’s what makes one different is what specialized skill he/she has in hold.
Here we shall have a thought on how Professional Accounting courses like CMA,CPA,ICWA,CA etc. helps better than or can be rated best when compared with a Masters in Business Administration. Let us analyze a few points on it:
1. Specialized Curriculum Vs Mass education system
Professional Accounting courses cover a curriculum which specializes an individual in certain necessary skills. While Management Accounting Curriculum covers areas like accounting, costing, internal control and audit, taxation, budgeting, capital raising, fund management work Chartered Accounting curriculum covers accounting, taxation, auditing areas. Therefore any student going for it becomes a master of entire gamut of finance, accounting, taxation, auditing, control, performance management, corporate governance and financial market areas. Professional Accounting exams have strong application of mathematics and operational research areas which builds up the skill. US exams in Professional Accounting are scientific and significant part of the CMA or CPA exam are objective which adds to the passing rate.
In the case of an MBA course, it covers general management curriculum (mix of marketing, finance, quantitative methods, HR and Personnel, strategy and organizational behavior subjects) and a specialization. If it is an MBA (Finance) course the specialization papers include international banking, portfolio management, strategic finance papers. Here they do not provide an academic input in areas like taxation, accounting standards, performance management, audit. In MBA papers like HR, OB and Marketing (except the statistics and marketing research) are more of a kind to build one’s attitude than skill. Verbal or written communication skills or looks are those that may be required for MBA (Marketing or HR) jobs.
2. Wide Career Scale
The career scale of a Professional Accountant is very wide. With the specialized skill areas they could work both within the companies as well as in the Financial market(Banking, insurance and Capital Markets).A Management Accounting professional can also do private practice as a Management Accountant(As Cost Accountant in India),like a Chartered Accountant. Also he can act as an Auditee in a company while a Chartered Accountant is an Auditor.
An MBA qualified when compared could only compete in Financial Markets. So they work in Banking, insurance and Capital markets. To work in companies and rise to a higher level they need specialized skills in areas of Audit, Taxation etc. So in their case “Financial Controllership Line” is practically unavailable
3. Cost of Education
Any professional Accounting Program could be qualified within an affordable cost of education. While a CMA (US) or ICWAI program can be completed within Rs 1.4 lakhs, other professional accounting program in India will cost around Rs 1.5 lakhs. This comes one-fifth of an average MBA cost
An average private B-school MBA costs Rs 5-10 lakhs today. In addition to this is the time and money one spend for examinations like JEE or MBA entrance examinations
4. Utility Value/Demand/Salary Scale
A professional finance and accounting job is so much specialized that natural entry barrier protects the finance and accounting work area from encroachment by candidates from other discipline .Hence it has a much higher utility value too. The demand for finance and accounting professionals are also increasing today. Since India is embracing a new direct tax code and GST regime and adopting the International Financial Reporting Standards (IFRS), the demand for Professional Accountants (CA, ICWAI) is much more than the supply. While both Canada and US also will adopt IFRS, Indian professional accountants will be demanded worldwide. Any professional accountant gets an entry level salary of Rs 25000-40,000 in good companies
An MBA job does not have a practical entry barrier and hence a graduate can also do MBA level marketing or HR job. Hence it just like any other undergraduate or graduate degree which limits its utility value and demand. The charm of an MBA has also lessened to a great extent due to the cropping up of several B-Schools which doesn’t produce the ‘creamy layer’ of professionals but a bunch of just an average ‘Business Administrators’. An average IT grad or MBA from a private B-school draws an average entry point salary of Rs 8000-10000 after spending Rs 5-10 lakh for either of the degrees and spending so many years in academics.
5. Level of Job Satisfaction
Alongside the salary hike one would definitely be happy with his profession only if there is job satisfaction. In this matter also Professional Accounting jobs gives higher job satisfaction. In any company, the finance and accounting manager takes business decision on everyday basis. He enjoy a power in the organization. a finance person can’t be fired easily as it has the risk of creating major dislocation to the organization which points to the stability and security of his job.
A common feature you could find now-a-days in any MBA or HR job is High job dissatisfaction, and pink-slips. An achievement today will be forgotten tomorrow in marketing function as everyday starts afresh. Therefore high risk, instability and stress are found in these areas.