Difference Between CPA and CFP
The full form for CPA is Certified Public Accountant and it can be pursued by aspirants who aspire to work in matters pertaining to accounts and taxes whereas the full form of CFP is a certified financial planner and it can be pursued by aspirants who aspire to become financial planners for individual clients.
The financial industry is steering for a nerve-wracking growth and gaining a foothold in the booming industry is more than important for every finance professional. Each one desires unique professional opportunities and in this cat race, the right course will put you right ahead. On one side CPA is all about accounting and auditing, CFP is about Investment and Retirement Planning. Let’s explore these two courses.
What is CPA?
The Certified Public Accountant (CPA) exam is conducted by The American Institute of Certified Public Accountants (AICPA) which is recognized across the globe for its competence. Accountant professionals who wish to make a successful career in the US or has to work with US-based clients is required to take the examination held by the AICPA. This certified exams can be conducted in the 55 states in the US who have been granted the license to do so.
There is no centralized body of control and each state has its own licensing requirements and pattern of the exam. A CPA professional is an expert in handling tax law questions or provides tax advice to people. He can choose to practice in his individual capacity or create a small business or work for big firms. A CPA goes through rigorous training and learning to be able to handle financial reportsFinancial ReportsFinancial Reporting is the process of disclosing all the relevant financial information of a business for a particular accounting period. These reports are used by the stakeholders (investors, creditors/ bankers, public, regulatory agencies, and government) to make investing and other relevant decisions. thoroughly and in-depth.
What is CFP?
Financial planners aiming to boost their careers through specialization specialize in the strategic financial planning or advisory role in the financial services industry should opt to take the CFP or Certified Financial Planner exam. CFP is a certificate course for financial planners awarded by the Certified Financial Planner Board of Standards (CFP Board) in the United States and by its affiliated body FPBS in India.
CFP is recognized as a mark of excellence, and is well respected and considered competent by the finance industry worldwide. The course is designed to meet the stringent standards of education, examination, experience, and ethics to ensure that the individuals certified win the trust of employees and have a plethora of opportunities waiting for them after completing the course.
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CPA vs CFP Infographics
Let’s see the top differences between CPA vs CFP along with infographics.
The candidates must fulfill the 4E criteria to be certified as a CFP.
The minimum eligibility criterion for the CFP course is a graduate or bachelor’s degree or higher degree with a working knowledge of the financial planningKnowledge Of The Financial PlanningFinancial planning is a structured approach to understanding your current and future financial goals and then taking the necessary measures to accomplish them. Because this does not begin and end in a specific time frame, it is referred to as an ongoing process. practices prevalent in the industry.
To be eligible for the CPA examination a candidate is required to have education which is equivalent to up to five years. The candidate must have a 4-year bachelor’s degree and preferably a master’s degree and this should amount to 120 to 150 hours of credit in the business education domain.
CPA vs CFP Comparative Table
|Organizing Body||The exams are managed and controlled by the American Institute of Certified Public Accountants (AICPA), USA.||The exams are managed and controlled by the Certified Financial Planner Board (CFP Board) of Standards Inc., USA.|
|Pattern||The course for CPA qualification is divided into 4 assessment exams
|The course for CFP qualification consists of only one level.|
|Duration of Course||The candidates usually pass all four assessment exams and become CPA qualified in a span of 18 months.||On average, the candidates complete the course and become CFP qualified in a span of 3 years.|
|Syllabus||The syllabus of the course covers the following topics
|The syllabus of the course covers the following topics
|Exam Fees||The total cost of the entire course comes to be $1,500 and it includes exam fees, application fees, registration fees, and license fees.||The total cost of the entire course lies in the range of $825 to $1,025 based on the time of registration. The fees for early, standard, and late registration are $825, $925, and $1,025 respectively.|
|Jobs||Some of the common profiles include
|Some of the common profiles include
|Difficulty||The difficulty level of the exams is moderate as reflected from the historical pass rate of ~50%. The pass rates for the assessment exams conducted during 2020 were in the range of 55% to 65%.||The difficulty level of the exams is moderate as reflected from the historical pass rate above 60%. The overall pass rate and that of the first-timers for the exams conducted during 2019 were 62%, and 66% respectively.|
|Exam Date||From 2021 onwards, the candidates can take the exams throughout the year as the CPA exams shifted to the Continuous Testing model.||The upcoming exams for the year 2021 are scheduled to take place during March 09-16, July 06-13, and November 02-09.|
Why Pursue CPA?
The CPA is a prestigious qualification and it commands a great deal of respect from insiders in the industry. The AICPA is the body is known for its strict norms and standards, and therefore the CPA examCPA ExamThe CPA Exam assesses accounting professionals not just on their financial knowledge, but also on their ability to review and seek out key abilities. is looked upon with high regard. The candidates are required to meet certain criteria to be eligible for the exam and this ensures the quality of the professionals is maintained.
The CPA is arguably the highest qualification a CA could achieve and it greatly boosts a professional’s career by availing him opportunities to work in the public accounting department in American MNCs as well as the license to practice in the US.
A CPA license is widely respected as an indicator of quantitative skills and high standards of professionalism and it is a necessary achievement to qualify for the Big 4 firms that dominate the public accounting sector, PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young, and KPMG.
Why Pursue CFP?
CFP is a mark of professional excellence and is considered to be the highest level of certification a professional can aim to achieve in the financial industry. The certification is accepted and appreciated worldwide by professionals as well as consumers. The certificate has been awarded the Gold StandardGold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency. Award by the Wall Street Journal which speaks volumes of its credibility.
The CFP candidates have been found to benefit leaps and bounds from achieving this course. The professionals are said to have been compensated with attractive salaries in industries such as investments, insurance, tax, retirement & real estate.
Take your right foot forward in your professional journey with the course that meets your career requirements. All the best!
This has been a guide to CPA vs CFP. Here we discuss the top differences between CPA and CFP along with a comparative table and why to pursue these careers. You may also have a look at the following articles –