While India has more than 400,000 chartered accountants (according to the Institute of Chartered Accountants of India) and a growing number of CFAs (chartered financial analysts – 10,000 and counting), the CPA (certified public accountant) certification is not as popular.
But thanks to the growing number of GCCs (global capability centres of MNCs) in India – currently at 1,700 and expected to cross 2,000 by 2025, as per Nasscom & Zinnov study – the CPA certification is getting popular.
Ed Clark, the president of Becker (which helps candidates who are preparing to sit for the CPA Exam), told FE that, in 2023, as many as 5,286 candidates from India took the CPA Exam, up from just 1,392 in 2019.
What’s a CPA?
A CPA is someone licensed by the state to practise public accounting – and has to pass the CPA Exam. This certification is popular in the US, unlike CA that is popular in India and the Commonwealth. The difference is that CPAs can find more opportunities in public accounting and corporate finance, while CAs may have a stronger presence in auditing and taxation.
The role of GCCs, Big 4
GCCs need professionals who can analyse and certify financial statements, prepare taxes for individuals and businesses, and perform audit, etc, and a CPA is well-versed in these tasks.
The Big 4 accounting organisations (Deloitte, EY, PwC, and KPMG) offer accounting, taxation, and auditing services to clients globally, and they also value CPAs. Clark said that CPAs are well-versed in US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), making them valuable assets for MNCs.
He added that there is a difference between a CPA and a non-CPA accountant. For instance, a CPA can represent clients before the US IRS (Internal Revenue Service), conduct external audits, SOC audits, and SEC reporting, something which non-CPA accountants cannot do.
CPAs in India
Clark said that outside of the US, India is the largest and fastest-growing market for CPAs. “India overtook Japan in 2023 to be at the second spot, and had overtaken countries such as South Korea and Canada in the recent past,” he said. “In 2023, there were 5,286 CPA test takers in India, at a growth of 60% over 2022 (3,317). The number of CPA test takers in India is expected to be over 11,000 by 2025, pointing to the qualification’s steady growth.”
He added that while getting CPA certification can be tough, Becker has a mechanism that makes it simpler. “Advancing your career to become a CPA is hard work, but finding the right CPA Exam preparation doesn’t have to be,” he said. “Our CPA Exam prep is tailor-made for each professional, and we have helped over a million students prepare for the CPA Exam.”
Becker today has close to 50% market share of the CPA exam preparation in the Indian market. He added that the top cities for CPA test takers are Bengaluru, Hyderabad, Mumbai, and Delhi, followed by Pune and Jaipur. “The key growth markets are Karnataka, Andhra Pradesh, Telangana, Maharashtra, and Delhi NCR.”
Prior to 2020, the CPA exam was not conducted in India and test takers had to go abroad.