CA Vs MBA

CA is a good and rewarding career although,
> like in medicine, building a practice from scratch takes time. Of
> course, there is the option of working for someone else -- CAs are
> in demand in the industry like never before.
>
> KPOs, equity analysis and accounting firms employ a lot of CAs at
> very good salaries. But remember, it can be a very boring profession
> if you don't like working with numbers. So don't make a choice based
> only on the job potential!
>
> Half-a-dozen readers will sent me angry emails saying that Chartered
> Accountancy was a great profession -- and that I was projecting a
> wrong picture. That no profession can be termed as 'boring'.
>
> Well, I'm afraid I can't be politically correct and will go out on a
> limb to say that CA -- despite being a respectable profession with
> great career prospects -- has lost out to the MBA. And, like it or
> not, this trend will only grow stronger.
>
> The ABCD of CA
>
> Ask most engineers why they did a BE and they'll tell you: "That's
> what all bright students who opt for science do... unless they want
> to do medicine."
>
> The situation is something similar with CA. "That's what all bright
> commerce students do... unless they want to do MBA." Of course, the
> situation is a bit different. Even those doing the CA may eventually
> top it off with an MBA.
>
> The difference between the CA and MBA is a bit like the difference
> between a five day test match and one day cricket. Acquiring a CA
> takes a lot of plodding and perseverance; at the end of the day, a
> result may prove inconclusive.
>
> The MBA, like one day cricket, is quick, glamorous and performers
> get faster recognition as stars.
>
> Okay, let's not stretch it. One day or five day -- in both cases,
> the players hold a bat and throw a ball. In case of CA and MBA,
> there is a difference. Both may join the same companies, but their
> job profiles would be completely distinct.
>
> This is not to say that one job is 'superior' to the other. But the
> fact is that, starting as a CA, you can expect to climb up the
> ladder upto the CFO position. While an MBA's career path could -- in
> theory -- lead upto CEO. There are notable exceptions such as Deepak
> Parekh of HDFC, but, generally, this holds true.
> Why MBAs are preferred
>
> The reason is simple: being CEO is about vision and leadership. This
> would require you -- at times -- to take a leap of faith, even when
> the numbers are against you. For example, you diversify into a new
> area of business. This may mean investing a lot of money, literally
> burning cash in the initial phase. It may look very bad on the
> balance sheet for a while, but there is a gameplan and eventually it
> pays off.
>
> MBAs are exposed to all aspects of the business -- their role is to
> take a bird's eye view of the organisation. On the other hand, CAs
> are trained to look at the eye of the fish. And they do a damn good
> job of it.
>
> But should a CA decide to throw down his accounting and auditing
> arrow and don a different hat, it is not easy. The mobility into
> general management and consulting that comes with an MBA from a
> premier institute is missing for CAs. Even though the CA has battled
> equally hard; a rank holder in particular would be one among several
> thousand aspirants.
>
> Overall, it appears that MBAs score when it comes to communication
> skills, presentation and customer orientation. The 'soft skills' so
> crucial for success in today's corporate world.
>
> The bottomline is that certain jobs are purely in the CA domain:
> Statutory & Regulatory compliance, Consolidations, Taxation,
> International Accounting (GAAP), Internal Audit, Systems Audit,
> Transaction Advisory -- to name a few.
>
> Other profiles are available to both CA s and MBAs: MIS, Budgeting
> forecasting, Business Planning, Equity Research, Treasury,
> Investment Banking, Mergers and Acquisitions, Portfolio management,
> Fund management, Sector Analysis.
>
> However, these are diversified roles. Many employers prefer to hire
> MBAs from premier institutes for these roles, as it is felt they are
> more equipped to provide insight and analysis.
>
> Does a CA + MBA combination provide an extra edge? Well, it never
> hurts to have a double degree but there's no sure fire formula to
> become a finance whizkid. An engineer + MBA or a B Com with a degree
> from a top 10 institute stands an equal chance!
>