Finance Certification
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CPA vs CFA – The primary difference between the two are the core covers and career opportunities it provides. CPA is considered to be “black belt in accounting” and prepares you for careers in Accounting and Auditing, whereas, CFA Program focusses on Investment Management covering broad topics like Corporate Finance, Portfolio Management, Derivatives, Fixed Income, Alternative Investments and prepares you for careers in Investment Banking, Portfolio Management, Financial Research etc.
Rather than asking this question that “Which is better?”, you should ask “Which is is better for YOU!”
Deciding a credential is sometimes deciding your fate because eventually your career is going to be in your chosen line. This thought itself might give you nightmares, isn’t it? But believe me if you have identified your interests and know your skills well, this is not difficult.
I am assuming you may have decided to take either Certified Public Accountant (CPA) or the Chartered Financial Analyst (CFA®) as you want to boost your expertise and knowledge in the area of finance. This is in fact a good idea and one of the finest ways to go up the ladder in an industry where you wish to make your fortunes.
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This article would be helpful to those who want to find out the difference between these two certifications CPA vs CFA® in terms of exam details, requirements and career which will ease your apprehension regarding them.
Appearing for CFA Level 1 exam? – Do have a look at this awesome 70+ hours of CFA level 1 Video Tutorials
We will discuss the following in this article –
- CFA® vs CPA Infographics
- What is Certified Public Accountant (CPA)?
- What is Chartered Financial Analyst (CFA®)?
- CPA vs CFA® Exam Requirements
- Why pursue CPA?
- Why pursue CFA®?
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CPA vs CFA® Infographics
Reading time : 90 seconds
What is Certified Public Accountant (CPA)?
- CPA has been so far the most known credential for advancing a career in accounting and auditing.
- It is considered to the “Black belt in accounting”
- A CPA license is legally essential in order to do specific jobs, such as public accounting i.e. independent auditing.
- It permits you to charge for accounting services you provide to the public.
- CPA is quite useful when it comes to the corporate but essentially it is valuable in the public sector.
According to the AICPA, CPAs roughly earn 10-15% more when they begin working compared to non-credentialed accountants. Also CPAs are more attractive to employers than non-CPAs.
According to the U.S. Bureau of Labor Statistics (BLS), accountant and auditor occupations, which includes CPA’s among other accounting professionals, were projected to grow by 13 percent between 2012 and 2022
What is Chartered Financial Analyst (CFA®)?
The CFA® Program focuses on investment management. The top employers of charterholders include the most respected financial corporations in the world, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few. Many of these are investment banks, but the CFA® Program focuses on the knowledge and skills most relevant to the global investment management profession from the standpoint of a practitioner.
- Investment professionals who hold the CFA®designation (or CFA® charter) meet rigorous educational, work experience, and ethical conduct requirements.
- Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including an ethics and code of professional conduct attestation) are permitted to use the CFA® designation. Complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.
CPA vs CFA® Pre-requisites
| Criteria | CPA | CFA® |
| Educational Pre-requisites | This varies by state, but typically, in order to appear for the CPA exam, applicants should have a bachelor’s degree along with 120 semester hours | You would require only a bachelor’s degree.Even in case you do not have one this condition can be satisfied if you have 4 years of professional experience |
| Additional educational Pre-requisites | It generally comprises of 24 to 30 semester hours in accounting, earned through a graduate or bachelor’s degree in business. Many students also pursue a master’s degree in order to complete the educational requirements | Not required |
| Work Experience Pre-requisites | As far as the work experience is concerned it would vary across states but mostly they require to have completed at least 1-2 years working directly for the CPA | CFA® would require a four years’ professional experience in related field that has a direct role to play with the investment banking process. Furthermore, they need to be the members of the CFA® institute |
| Overall Pre-requisites | To obtain the CPA certification, applicants must clear the Uniform CPA Exam, gain applicable work experience and meet additional educational requirements | To obtain the CFA® certification, applicants must clear the CFA® exam and gain applicable work experience |
Looking at the pre-requisites we can clearly see that CPA is more restrictive when it comes to the educational requirements, but once you get qualified, the process would be much faster. On the other hand, the CFA® is less restrictive and has a lower entrance barrier but it takes much more time to complete and achieve the charter.
Why pursue CPA?
- Accounting as a career choice is an in demand and will continue to be so.
- To pursue your career as an auditor, CPA would be a must or else you would be limited to only entry-level jobs.
- A CPA license is extensively appreciated as an indicator of quantitative skills and high standards of professionalism.
- Once a CPA is within this area of public accounting, you could work for any sized firm, from a large CPA firm to a small local accounting firm.
- At the firm you could work on any of these varied fields such audit, tax and management consulting.
- Also in case you want to work for any business corporate you could choose a field in financial accounting and reporting, management accounting, financial analysis and treasury/cash management, hedge funds etc. On the other side at the government end you could work for either at the federal, state or local level. There are also various opportunities available for the non-profit organizations.
- CPA in a sense is required because it will help ensure the public maintains a sense of trust. Otherwise finances in the wrong hands can be used be highly unsafe.
Why pursue the CFA® designation?
In order to get the best jobs in an investment bank you either require an MBA from on the top institutes or the second best option would be to have the CFA® designation and good relevant experience (confused between CFA® vs MBA, look at this CFA® or MBA
- The differentiating benefits of earning the CFA® designation include:
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand
- The sheer demand for the CFA® charter speaks to the difference it makes. More than 160,000 CFA® exam registrations were processed for the June 2015 exams (35% in the Americas, 22% in Europe, Middle East, and Africa, and 43% in Asia Pacific).For more information, refer to- CFA® Programs
Other useful comparisons
Conclusions
The decision to take up either CPA or the CFA® credential is dependent upon the choice of direction you want to give your career. In all we could say that each of them CPA and CFA® are quite unique and focused on areas of accounting and investments respectively. I hope this write up will help you make an informed choice for your career. All the very best 🙂
What next?
If you learned something new or enjoyed the post, please leave a comment below. Let me know what you think. Many thanks and take care. Happy Learning!
Perfect breakdown. Thank you!
thanks Elmira!
Thank you for your informative graphic. Should a 39 year old working in an unrelated field pursue any of these designations? My education background is in the liberal arts. my interest revolve around geopolitics,international affairs and its effect on business. A CFA appears to be a natural choice but what of the work experience criteria? Is it worth pursuing at middle age? I know I ask the impossible but I would appreciate your feedback.
Hi Alvin,
Not sure if they make sense as of now. You can consider these only if you have a very keen interest in Finance and accounting field as such. These are highly focussed finance exams.
Hi, I am planning to complete my bachelors in accounting and apply for CFA. Is that a good idea?
Yes Dan.. that’s a great idea if you have interest in Corporate finance related topics (IB, ER, PE, Portfolio Management etc). If you want to make a career in accounting and auditing, then CPA is the right choice.
Hi,
I am Indian CFA (ICFAI) and CMA- USA graduate currently working in Holding group in UAE as Investment Manger. Planing to enhanced my career in Corporate Finance- M&A and Private Equity since most of my experienced in Corporate & project finance. Hence which degree is better for me ACCA or CFA- USA. Since CFA is more toward equity,derivative and Portfolio management.
Given your background and your interest in Corporate finance, M&A, Private Equity, my take is that CFA is more suitable.
Best,
Dheeraj
Thanks Dheeraj,
But but what about CAIA- USA option
Hi Saquib, please check these articles CAIA vs CFA.
Thanks,
Dheeraj
Thanks for breaking down the difference between CPA and CFA so precisely. I think I now know what direction I should be taking.
Thanks again
Thanks Buri, I am glad this comparison helped you to take the right decision.
Best,
Dheeraj
Hi,
I am Indian CA and completed CPA. I am currently working for a CPA firm from India. If I do CFA, will it add value to my career and for better job prospects. I am also interested in stock markets and research.
Please let me know your thoughts. Thank you!
Hi Chandra, CFA should definitely help you if you are looking for careers in stock markets and equity research.
CFA + CA is an excellent combination for such profiles.
Best,
Dheeraj
Have a nice day Dheeraj,first I would like to thank you for you great efforts to help students
For me Iam 31.My field of study is English Arts.I have not any prior experience with financials or commercials and for fact Iam planning to conquer this field that is why I need your advice about which one will be more appropriate for me to start with ,the CFA or the CPA.I know that matters may be difficult but I have strong will and determination to pass one of them also I have good acceptance to receive learning also I have good command with math and calculations.I have also time to study well.So please would you advise me which of them will be better for my case to have a better career later on.
Iam waiting for your response as soon as possible
Thank you in advance.
HI Azmi,
If you are neutral to the choice of finance careers, then my take would be that you start with CFA as it is more broad based and provide wide array of career choices and learnings. CPA will be highly focused towards accounting.
Best,
Dheeraj
Hi Dheeraj, Thanks for the wonderful comparison. Could you please help me in selecting the CPA or CFA course for my future career path. I am into UK Mutual Funds financial reporting field with above 8 years of experience. I am a certified FRM, MBA (Distance Education) and B.COM.
Could you please help me in selecting the appropriate financial course.
Hi Mohith,
what do you want to become? What are your interest areas? CFA is very broad based, however, CPA is all about core Accounting.
thanks,
Dheeraj
Hi Dheeraj,
I am into Fucntional support role of Oracle and Financial applications in MNC (Banking). I am a BCom(H) and LLB and want to further enhance my education qualification. I have 12 years of work exp. As I am not into core accounting and feel apprehensive if I will be ellible for CFA or CPA. Any advice would be appreciated.
Thanks,
Hi Ratnesh, CPA is more about accounting. not sure you want to move into this one now? However, CFA will provide you with a general view of finance industry, its roles and technical knowledge. What is your plan? Are you looking for a shift from your current profile?
Thanks,
Dheeraj
Sir,
Is it possible to hire who has a CFA for Chief Accountant Position?
Or which is better for Chief Accountant qualification CPA or CFA?
Hi Mart,
I guess for the chief accountant position, CPA makes lot of sense. CFA curriculum in general covers 8-10 broad areas including accounting. however, CPA primary focus in into accounting and taxation.
Best,
Dheeraj
Hey Dheeraj,
I have done engineering in computer science technology, after which I am working for a Nationalized Bank in India as PO(2 years) in which my job is to bring in new business to my branch, my bank. My job has got nothing to do much with accounts and finance.
Now, I want to grow ahead and my focus is on shifting to any developed country, I have come to know from my seniors and my mentors that CFA is a better option to go with, which can help me in moving abroad. But I don’t have any idea that if CFA is going to be fruitful to me.
Kindly guide what should I pursue CFA (or any other course). Request you to also tell the duration that CFA takes in completing, what are the chances of going abroad with it. What’s the exposure that one can get with this.
And also is it worth to leave a Nationalized Bank’s permanent job for CFA to move ahead in career?
Hi Arpit,
CFA is globally recognized certification and is respected in the Investment Community. However, if you are purely taking it for moving abroad, I am not sure i have the right statistics to share with you. You may look at complete details of cfa exmaination here for your other questions.
Thanks,
Dheeraj
Hello Sir, Wonderful comparison. Regarding my situation – I have finished my B.com(india) and MS in Finance(UK) and had worked for Public accountant in UK for 2 years and recently in payroll administrator in india for 1.5 years. Now i moved to USA after marriage. Looking at the career opportunities, can u pls advice which program is better to do CPA OR CFA?? since im bit confused.
Hi Vandy,
Given your experience in accounting, i think CPA makes more sense logically. On the other hand, CFA takes a bit longer to complete (minimum of 2.5 years) as compared to CPA (less than 1 year). CFA is useful for those who want to move in Investment Management field.
Best of luck,
Dheeraj
Hi Dheeraj,
This would be a bit complex situation for you to answer, at least hope that won’t be the case.
I’ve done my bachelors in Management Studies with specialization in Finance and Investment & Portfolio Management from Mumbai, India.
I currently work in Dubai, UAE as procurement & logistics (past 4 months) and wish to pursue ahead in field of Finance.
Prior to this job, I was working as a Operations Manager & Finance controller for a logistics based firm in Dubai for a duration of 3.5 years.
I attempted for CFA Level 1 exam in Dec 2015 & have not succeeded to clear it. During my course of CFA Level 1, I kept having this thought/feeling that CFA might not be the right option for as its more to do with Banking sector, stocks/derivatives/hedge funds, etc. plus lot of theory and less of actual calculations.
I’m not so great when it comes to theory and more comfortable towards calculation based specialization field.
I do know that I’m strong when it comes to numbers and never go wrong on that. However, I do not want a typical accountant job which involves receivables, payable s, petty cash, balance sheet, etc.
I want to pursue something in finance/auditing/management. Would CPA be the right thing to go for at this stage? Or should I opt for MBA in Finance or Masters in Finance?
I’m also looking to move out of UAE soon & move to Australia (permanently), so which ever option I opt for should help me utilize this specialization in Australia & hopefully land me a decent job too.
Based on the above summary, would it be possible for you to help me out with a solution on this? Would really really appreciate a lot if you could do so.
Awaiting your earlier reply.
Many thanks.
Rgds,
Robinson
Hi Robinson,
Based purely on the information provided, i think CPA would make sense for you.
As you do not wish you pursue a career in banking, CFA is completely ruled out. You have two options – MBA or CPA. Downside of MBA would be to resign and do full time MBA. I dont think at this stage, a part time MBA would do.
If you wish to move ahead in auditing, finance and management, go with CPA.
All the very best,
Dheeraj
Hi Dheeraj,
I am currently thinking of pursuing either the CPA of CFA. I started out working in Public Accounting for three years and have worked the last 8 at a global custodian bank. What would be best for me to pursue? I also have a masters in accounting.
Thanks,
Frank
Hello Frank,
Given your background and experience, you must be very comfortable with accounting. I believe CPA will make lot of sense as compared to CFA.
thanks,
Dheeraj
This was a great article!
I just had a quick question, if someone was to pursue both (CPA and CFA) as their interests are split between the two, would that be allowed?
Thank you,
Saad M.
Hi Saad,
There are no issues as such in pursing both the certifications. Just that both of them will require significant efforts, its much better to be clear on your interests before you appear for these exams.
Thanks,
Dheeraj
Hello Sir, Wonderful comparison. Regarding my situation – I have finished my MBA (finance) and had worked for a scheduled bank for 15 months. Now I want to add some weightag to my profile and want to pursue more knowledge in finance.
Is it better to do CPA OR CFA after our Mba
Hi Vikram,
Given your experience and MBA background, my take is that CFA will suit you more. Opt for CPA only if you are focused on accounting aspects of Finance.
Thanks,
Dheeraj
can we refer chartered accountant 3 years training for cfa 4 year working experience requirement
Hi Manish,
I am really not sure if that can be counted as experience. But it is best to check with the CFA Institute and drop your query on the same. I have seen that they are very responsive with such queries.
Thanks,
Dheeraj
Good Day,
i”ve decided to pursue a career in Accounting. i”m 17 years old and in college. can i do the CFA exams with no job training. CFA appeals to me more than CPA.
Thanks
Hey Chris,
Here are the criterias for appearing in the CFA exam –
You must have one of the following:
– Bachelor’s (or equivalent) degree
– Be in the final year of bachelor’s degree program (IF YOU ARE HERE, then you are qualified!)
– Have four years professional work experience
– Have a combination of professional work and university experience that totals at least four years
Thanks,
Dheeraj
hello sir I am in my bcom2 year and want to do cfa in future . I just want to ask doing pg will boost my opportunity in corporate sector or I can do any other course bt not ca .
Hi Aashiv,
If you are interested in MBA, then you must go for it as it is beneficial from the job perspective. Also, if you can add CFA charter while you complete your MBA, then it will be awesome!
All the very best!
Cheers,
Dheeraj
Hi Dheeraj,
I have completed CA from ICAI. 1 year work-ex as credit appraiser. 1.5 years in accounting & finance. Now, I have to move to Canada for five years after which I do not know where I may reside. Should I do Canadian CA, US CPA or CFA? I would like to have a global recognition as I can’t go on studying forever. I’m interested in financial analysis. Also is CFA very difficult to clear?
Hi Sanjana,
With you being CA from ICAI, none of the degress like canadian CA, US CPA or CFA will be difficult. The study will be incremental. If you are interested in financial analysis, then CFA is right designation to look at as it has a global appeal and also suits your interests and work experience.
Thanks,
Dheeraj
Hello Dheeraj – Excellent article and read certainly appreciate the various tips and comparisons. Would really appreciate advice on the following.
I have been working in public accounting for the past 5 years and have recently began working on clients such as broker-dealers, mutual fund servicing, asset management, etc. I have developed a strong interest in these various operations and am considering a change. Do you think the best route to potentially get an opportunity for an analyst role would be to move to the internal audit department within an investment bank and try to move internally or pursue the CFA then try switch accordingly?
Hello Rob,
If you are really interested in analyst kind of role in Investment Banking, then pursing CFA is a better option. What i saw at my firm was that internal job postings for such roles are rare and cannot be made as a long term strategy. Some of my friends saw the wait to be too frustrating.
Hope this helps,
Thanks,
Dheeraj
Hello sir, I am pursuing CA final and done with my mcom and Cwm certification now confused whether should I move to mba carrier or cfa or public sector exams .which will be better as I am interested in financial carrier as analyst wanna be in research department not in audit and accounting.
Hi Tanvi, if you are interested in Financial analyst kind of roles, then you should go for it! With your CA background, you are already one step ahead compared to others who do not have such financial degress. Additionally, if you opt for CFA, your chances of moving into research kind of roles will multiply.
Hope this helps,
Thanks,
Dheeraj
Sir , I am pursuing CA final now really confuse about pursuing MBA from private institutes or either pursuing CFA.
Hi Tanvi, depends on where you are planning to do your MBA. If the MBA institute is not well known, then it may not be worth taking. In this case, you can plan for CFA.
Hi Dheeraj,
Thank you so much for the informative article, it was the best, I have a question, I would like to know with an MBA from a very good B-school, CPA would be a deadly combination or CFA if one interested in CFO or investment banking positions,
Thanks so much
Hi Sepideh,
My take will be MBA + CFA. However, it all depends on your interest.
Thanks,
Dheeraj
Would undertaking both the CPA and CFA credentials be worth it?
Hi Smith,
I think it is better if you could take the one that interests you the most – Accounting roles or Investment banking roles? If you are thinking of investment banking, then CFA is beneficial. CPA will be only incrementally helpful however.
thanks,
Dheeraj
Nice article. Looking at the career opportunities both fields provide, which would be better CPA or CFA?
Hi Sameul, what is your interest areas. If you do not have specific interest in Finance, then you may look at CFA as it provides better opportunities within Financial Industry.
Best,
Dheeraj
Hello sir,
Thank you so much for the Informative article.
I am currently doing b.com honours from DU. I want to be the financial analyst but do not like to be in the field of audit and taxes. Which one course will be best suited for me after graduation ?? And also how much finance is required for the course ??
If you want to get into financial analysis, then please take CFA exam. Details about the cost etc, you will find in this article – CFA Guide
Hello sir,thnx for the great comparison between these two..
I have one question
I’m a ca student and going to enrol for CFA level 1 by the month end.
So I want to know for better opportunity in finance CFA and ca is OK. Or I go for CPA after CFA and ca?
Thank you
Hi Toshit, If you currently a CA student, then you already have a great career in Finance and accounting. However, if you want to make your more marketable for firms in Investment Banking and Research, CFA is a great option to look at. CFA + CA is a deadly combination for research jobs 🙂
all the very best,
Dheeraj
I am masters & want to pursue further after a long time to enhance my position from Finance Manager to either CFO/Vice President level
So can u pls. advice which program is helpful CFA or CPA, since m a bit confused, since reading advantages of both u feel to have both added on ur profile, so even if we plan to go for both than which prog. to be given first priority…
Hello Kamlesh,
If you are looking for pure corporate finance role as a finance manager, i think CPA should be better for you. If you plan to give both, then first give CPA and later take CFA.
thanks,
Dheeraj
Thanks Sir
Can u also help me to understand how can i directly undergo CPA knowing that I am residing in Qatar & here there are no universities undergoing the same so m keen to have it done online & which materials will be best to refer, so to summarize:
1- Can I do CPA directly through online if yes is there any need to register with CPA America for the same
2- Which Material are advisable for directly having it through
3- How can i give my exams in Gulf
Thanks…
Hello Sir
Sorry but is there any update with regards to my query Sir, Appreciate ur support towards the same
Thanks in advance…
Thank you Sir for an awesome comparison on CFA & CPA as usual your articles are always helpful & knowledgeable. I have one question sir, according to you which credential is more useful for a CFO position in a company?
For a role of CFO, i think CPA will suit more as CFO role requires to have an excellent knowledge of accounting and MIS.
How if one want to pursue CFA after qualifying CA..? please answer with proper justification and explanation, thanks.
Hi Sohaib,
You can pursue CFA and it will be a great add-on to CA. Reasons could be –
1. CA is purely accounting and if you are planning to move into investment banking, CA degree alone may not help alot. You will need to complement your skills by taking CFA.
2. I have seen CAs move into Investment Banking directly as well, but the chances are pretty slim.
3. CFA exam is very easy for CAs due to their accounting background.
All the very best,
Dheeraj
Good day
thank you for a very good article that you’ve sent me
if i work in securities and want to have better opportunity in the future should i take CFA?
at present i already hold wppe and CSA licence
thanks and will be waiting your reply
Hello Ari,
CFA is well suited for those who want to get into Investment Banking, Equity Research, Investment Management etc. If you work in securities, CFA can give you a bright future.
Best,
Dheeraj
Hello Dheeraj, excellent comparison once again. Your writing style is the best and very informative.I had a question that if i want to be in core Corporate Finance which is better? CPA or CFA?
thanks Elina :-). This article is written by my colleague Jesal. If you want to move into core Corporate Finance, CFA will suite as they cover corporate finance in depth.
Best,
Dheeraj