CA Vs B.Com + MBA which is better? Who earns more salary?
There are literally 140 crore people in this country and it is impossible to find two people whose thought processes are exactly similar to each other. And that’s precisely the beauty of human nature. As the saying goes “One man’s food is another man’s poison”.
On the same lines, career choices for different people from different walks of life are, well, you guessed it right, simply different. You can’t and more importantly, you shouldn’t follow a topper’s career path or your neighbor’s kid career advice who had scored 99%, just because you are forced into it. Your decisions should depend on your interest, passion, and what or how you define a successful career.
Also Check: BBA Vs. B.Com – What to choose after 12th?
To start with, there are plenty of factors involved before we can flawlessly conclude which combination of the career choice is better, CA or B.com plus MBA.
Some of the factors that “successful” people consider before choosing a particular career path are:
Let us define and demonstrate each one of the factors mentioned above in terms of CA and B.Com + MBA:
- Return on investment: Here again, there are a few factors involved before we can convincingly conclude, which option is better. An MBA from top tier B-School like IIM-A, B, or C can cost you more than 14L, in fee, for two years but still has an ROI of more than 1. But then again, it’s an IIM, the likes of which getting into one are highly thin on the ground. But there are other equally good top B-schools like Jamnala (JBIMS) or FMS-Delhi whose fee is not more than Rs. 25,000 per year. So the ROI here can be as high as 100. The average pay package provided to students during the on-campus placements in these schools is around 20L per annum depending on the experience and competence of the student.
On the other hand, to clear all levels of CA can cost you not more than Rs. 50,000 without coaching and not more than 1L with coaching. While the average pay package for a CA, in the beginning, will be around 12lpa.
So, when it comes to purely return on Investments, CA will have an upper hand, with, of course, terms and conditions applied.
- Job satisfaction- Are you someone who is content with working on your own for other companies as an outsider or are you someone who is excited or have dreamt of working for the likes of Google, Facebook, or Amazon? I ask this question simply because while CA is mainly confined to finance and accounting, an MBA teaches you the ins and outs of the business world. An MBA can teach you to be a business leader, train you to be the next Ratan Tata and I am not even exaggerating. If you look at the Alumnus of top IIMs, you can see that they have occupied the CEO and CFO positions of the majority of large organizations in the world.
An MBA teaches you a 360 degree of aspects of
- Supply chain
- Data Analytics
- Derivatives etc.,
Given the choices in MBA, in terms of Job Satisfaction B.com + MBA has the upper hand over CA
- Passion and interest- Anything that we do in life, the success of which depends on these two factors. There are people who give CAT exam and get into an IIM, only to realize that they are fulfilling only their parents but not their dreams. Never take decisions based on peer pressure or family pressure. Make sure all your hard work does not go in vain just because you are not passionate about it anymore. The following illustrates the qualities you should have to do either CA or MBA:
- Time value- The opportunity cost, which is also referred to as the time value of money, is an important factor to consider before you choose your career path. While MBA in India takes 2 years to complete, to clear CA with all the levels of exam, including articleship, can take, if you are lucky, 4 years, if not lucky, then more than 5 years!
Here I haven’t taken into account the number of resources and the number of years people waste in clearing the CAT exam to do an MBA from the top B-school. Even if that is taken into account, compared with the level of difficulty of the CA exam and the pass percentage, the time value of the CAT exam is still low.
The speed of your career growth and the slope of that graph rarely depend on whether you are an MBA or a CA. It might matter at the beginning of your career, but as you dive into the industry year after year, the value of what you have done in college diminishes, while the quality of work you have done in the past or what you can do in the future, takes much higher ground.
Also Refer: MBA Finance Reference Books PDF
And hence, when it comes to the time value of your career trajectory, MBA wins hands down over CA.
- Long term goals- What exactly are your long term goals?
- Is it to start your own company?
- Is it to become the next Jeff Bezos of India?
- Is it to be the torchbearer for financial integrity in the world?
- Is it to make money?
- Is it to do something good for society?
If the answer is yes to some and no to some others, don’t worry, we are all in the same boat. When it comes to contribution to the economy and the industry, there is no fine line between a CA and an MBA
We have some of the biggest names in government and other power corridors of the nation like RBI and SEBI who are either CAs or MBAs.
These combinations of degree and examinations are only to get you into the right track of field, maybe for the first 10 years of your professional life, after which, none of it matters except your passion, dedication, and belief towards your work
Do Check: CA CPT Application Form
As you can see, there is no one mantra to decide which combination is better for your career; it ultimately depends on your competence and hard work, not on your degree or any piece of paper.
Who earns more salary – CA vs B.com+MBA
Average Salary for CA vs MBA+B.Com
|CA salary per month||
B.Com+MBA salary per month
|Fresher||Rs.20,000 to Rs.35,000||Fresher||Rs.10,000 to Rs.35,000|
|1-3 years of experience||Rs. 35,000 to Rs.75,000||MBA from B.School||Rs. 1 lakh to 3 lakhs|
|starting salary with additional certificates||Rs. 55,000 to Rs.95,000||starting salary with additional certificates(Non-B.school)||Rs. 35,000 to Rs.75,000|
|Senior Auditor / Tax Consultant||Rs. 1.5 Lakh to 3 Lakhs||Senior Manager/officer||Rs. 1.5 Lakh to 3 Lakhs|
|Company CA||Rs.80,000 to 3 Lakhs||Company CEO||Rs. 3 Lakhs to 5 lakhs|
FAQs on CA Vs B.Com + MBA
1. What is the Course duration for both CA & MBA?
Chartered Accountant: If candidates want to pursue CA after completing their 12th, then the duration for Chartered Accountancy is 4.5 years and if they pursued after graduation then it takes 3 years to finish the CA Course.
MBA Finance: The duration of a typical non-executive full-time MBA normally varies from 18 to 24 months.
2. What is the salary offered to MBA Finance Holders?
The average salary awarded for MBA Finance graduates at top B-schools is around 15-20 lakh per annum.
3. What is the salary for CA graduates?
The average earnings as a fresher for a Chartered Accountant may range from Rs. 6 to 7 lakh per annum. Also, they can earn more packages in bigger firms.