Going Into an Accounting Role in the UK or the USA: What's the Difference?

Choosing between an accounting role in the US or UK can be difficult, especially if you don’t have an end goal in mind. In this guide, we’ll teach you about the key differences found in UK and USA accounting jobs and explain briefly what living in each country might look like.

The Accounting Scene

The UK and the USA have thriving financial sectors, but one can argue that the US has more opportunities due to the presence of Wall Street. US's leading accounting firms (PwC, Deloitte. EY, and KPMG) also have dozens of locations throughout the UK and love to hire grads.

US accountants can also work for major investment banks, such as Bank of America, JP Morgan Chase, and Wells Fargo. These companies hire a range from senior accountants to juniors. But no matter what country you’re in, you’ll be able to do a lot with your skills.

The Different Accounting Education Requirements and Practices

The UK and the United States have vastly different accounting qualifications and practices. These differences may impact whether you want to pursue a degree in either country.

Education Requirements

In the UK, the AAT qualification is the minimum you need to be an accountant. To get the certification, you only need a high school diploma. However, to become a chartered accountant, you’ll need to upgrade to an ACCA, ACA, or CIMA. Some of these qualifications need a degree, but most of them only require work experience in a relevant role to become fully qualified.

On the other hand, you absolutely need a bachelor's degree in a financial discipline to become an accountant. While you can become a bookkeeper without a degree, many employers still ask for one. To become a CPA (the US equivalent to the ACCA), you’ll need to take on extra credit hours and get practical experience. It takes much longer to become an accountant in the US.

Accounting Practices

Where you choose to study accounting will influence the type of practices you'll use. The US has a unique approach to accounting, so your CPA isn’t transferable to the rest of the world. 

However, more than 144 countries (the UK included) follow International Financial Reporting Standards. This means that UK accountants can work all over Asia, Africa, and Africa. Instead, US accountants need to follow a series of Generally Accepted Accounting Principles (GAAP).

If you plan on working in the United States, then you have to get an American degree or follow GAAP. But, if you want more flexibility with your degree and skills, get trained in the UK.

The Cost of Living

If you plan on living in financial centers like London and New York, the cost of living will be quite high. However, if you want to live in a smaller place like Swindon, UK, or Glendale, USA, living will be more affordable. It’s also possible to get a high-paying job at a big firm if they offer remote work. This is the best-case scenario if you want to save a lot of money.

As a UK resident, your education and cost of living will be cheaper than in the United States regardless because universities are subsidized and healthcare is paid through taxes. As a US resident, the cost to get a UK degree may be slightly on par with getting a US degree.

The Average Salary 

The average salary of an accountant in the UK is £50,000 ($62,000), whereas a US accountant will make £52,000 ($65,000) on average. But, an ACCA can make £72,000 ($90,000), whereas a CPA can make £97,000 ($120,000). In both examples, a US accountant makes more.

With that said, it isn’t by much. A UK accountant or ACCA still makes a significant amount of money, and with cost-of-living likely being lower in the UK, they may even take more home than their US counterparts. Not only that, but UK accountants have a more transferable skill set.

In Conclusion…

When you have the option to get an accounting certification in either the UK or the US, it seems like staying or going to the UK is the right choice. Unless you plan on staying in the United States, there are simply more benefits to getting educated in the United Kingdom.