MBA vs CA: Who make better chief executives?
This article was updated on 9th June 2020
It is common knowledge that in the present competitive world and a volatile job market like India, a professional qualification is a must. It has become the dire need to widen the career horizons and improve the job prospects for graduates. Young men and women from commerce background are stuck with the big question: MBA or CA? and we at SMS, Varanasi have taken to troubleshoot your query.
Numerous school and college students pursuing commerce stream frequently ask us this question and to find out which out of both would be a better study option, read on:
The CA certification:
The CA students are considered good at financial management, auditing and particularly account management. The chartered accountant certification was previously considered a prerequisite for the CEO position but today the number has declined to just 11.
Some of the industry’s top whos who include CAs with the likes of Naina Lal Kidwai, Keki Mistry, Kumar Mangalam Birla, George Alexander of Muthoot Group and TV Mohandas Pai.
Mr Birla during an interaction with CAs himself emphasised that the course has a big role in the booming Indian economy. With mergers and acquisitions assuming the position of being the prime factors in achieving competitive advantage, only CAs can help India align with the global economy.
One can opt for the chartered accountant profile as a career if he feels that he loves working with numbers. With ample job opportunities in taxation, consulting and regulatory compliance, the career can indeed be very rewarding. Such core accounting jobs can rarely be occupied by MBA candidates.
The number of new CAs entering the market is pegged at a figure of just 15%! So, becoming a CA is no easy task. (More than the competition, the exam itself is tough).
But most of the CA students lack the soft skills and confidence of an MBA and therefore, to improve career prospects, they need to develop a customer-friendly orientation.
A CA finds recruiters in private and public sector companies and some also freelance (work by their own rules). But To be a successful CA executive, the candidate needs to go through rigorous stages of examinations and training programs.
Skilled CAs remain in demand (since time immemorial) and ICAI sustain their skills by putting them to test. Another important factor: CA remained in high demand when companies were production factories and needed people who could run a tight ship. Today, the service-driven organizations need people who can devote consideration for individual needs and thus, an MBA degree confers task business and product leadership.
MBA side of the story:
MBAs have slowly marked an edge over the CAs to gain access to an elite CEO club. The reason: a manager needs skills that go beyond numbers and compliance audits. MBAs have reached into 45 top offices of the Indian Inc.
There has been a huge rise in the number of institutions and students opting for MBA course. The change is an outcome of the evolving dynamics of a manager’s role.
Today businesses need to be driven by a strong business strategy and leadership. Since an MBA develops a mindset which proactively identifies the business resources externally and internally. Also, they carry a deeper understanding of the global markets, fund pooling and talent acquisition.
Leading b-schools offer their students the exposure to evolve, learn and optimise themselves from on and off-campus activities designed to promote diversity. Even the b-school fests invite students from other institutions to raise the level of motivation. With management games like ad-mad, sell-it and idea pitching, these b-schools prepare the business Turks of tomorrow, today. Not only these activities promote confidence but also teamwork by providing an insight into the life of a manager.MBA teaches students these skills automatically.
The course offers something to every individual irrespective of age. Despite this fact, many people are sceptical about the adoption of the course at later side of the ’30s and beyond.
An MBA adapts to both internal as well as external needs while CA tends to be more oriented internally. Leading a team and satisfying a customer are entirely different factors from managing finances.
Further, as businesses become tech-savvy and rely heavily on IT help to hone their decision-making skills, the role of the manager is changing to being multi-specialist. CAs tend to be a super-specialist in auditing and financial monitoring and thus act as the guiding light for monetary functions only.
In jobs like financial consulting and investment management, MBA Students are preferred.
These jobs are in addition to numerous other job vistas like marketing, sales, human resource management, systems, production, operations, etc.
MBA vs CA:
- CAT is the toughest exam on the block. There exists cutthroat competition to make it to the IIM where many 99% percentile students return empty-handed. CA too is not an easy exam to crack either.
- A Chartered Accountant requires deep gist on finance, compliance, taxation and accountancy and deals everything with numbers. An MBA is not such a detailed course and presents an overview of the course.
- CA requires a good understanding of accounting bylaws, standards and corporate taxes for preparation of Annual Reports. This helps ensure financial health as well as compliance for the company. But the MBA requires broader (yet theoretical) knowledge of socio-cultural norms, international trade policies, corporate strategy, general management functions. An MBA thus makes a decision using a wider knowledge base and effectively troubleshoot business challenges.
- CA is a super-specialist function and growth is relatively stagnant than MBA. An MBA is always considered a flexible opportunity oriented approach that promises career advancement (based on actual job performance).
- The focus of the MBA program is on providing maximum real-life exposure on multiple domains of knowledge, bring in a social change and time management. CA course tries in its own manner to be the best out of the opting candidate by relying on its intensive financial oriented syllabus.
- Thus both the courses are different in outlook and approach. CA course takes extra time and effort in completing but gives intensive knowledge. An MBA, however, takes less time but requires the same dedication and yields results in a fixed span of time frame.
- CA gives the perfect platform to build financial security and prestige but an MBA makes the person self-reliant, financially secure and confident to turn the things into his favour.
Conclusion:
The MBA curriculum combines theory with innovative teaching methodologies like seminars, case studies, simulation and experiential learning. The course gives networking opportunities as well as a chance to understand the international culture and their business environment (and in making informed choices). The internship program is added to allow for trying practical aspects. Along with soft skills and presentation skills, the placement meter shows positive statistics. (A fact that needs to become the focus of the CA program).
Thus, If you are good at managing people and are an extrovert, opt for a management role. With large options at your disposal in areas like consulting, finance, marketing, healthcare and investment banking, the options of success are many.
MBA and CA are two entirely divergent career opportunities. A wrong decision in selection can result in a lot of precious resources get wasted. Rather than crying over spilt milk, it is important to clarify your calling.
Choosing an MBA as the go-to option will be a long term investment into both qualitative and quantitative aspects. These considerations are critical to personal success goals.