CFA Charterholder vs. CPA: What's the difference?
CFA charterholders and CPAs both work with financial data, consult with clients, and assess the viability of various companies and organizations; however, the results of these tasks differ depending on which reference you have. CFA charterholders focus on understanding market conditions, evaluating companies and determining the best way for companies or individual clients to invest their money. They use investments to generate income for their clients, and some charterholders buy or sell securities, funds and more on behalf of their clients. CFA charterholders are likely to be investment analysts, financial advisors and portfolio managers. Some even become Chief Financial Officers (CFOs).
CPAs, on the other hand, produce financial data. They can calculate taxes owed or review business practices to find ways to save money. They must also ensure compliance with applicable financial regulations. Some CPAs use their accounting skills to identify evidence of fraud or other crimes.
Is it worth becoming a CPA?
If becoming a CPA appeals to you, weigh the pros and cons of preparing for and taking the CPA exam.
Benefits of Becoming a CPA
- Any salary increases will offset the costs of preparing for and taking the exam itself.
- Your exam preparation will teach you skills and knowledge that will help you become a better accountant.
- Becoming a CPA indicates that you are committed to your profession, which can give you more options and flexibility in your career.
Disadvantages of Becoming a CPA
- It is expensive. The cost of the CPA exam itself varies by state, but expect to spend about $1,000 on registration and testing fees, plus several thousand dollars for an evaluation course (which we highly recommend). Some companies reimburse their employees for CPA exam-related costs, so check with your employer to see if you qualify.
- It takes a lot of time. It is recommended that you spend 300-400 hours preparing for the CPA exam, in addition to the time required to take the test (~16 hours total).
Keep in mind that although the financial and time costs you will inevitably have to invest in becoming a CPA may seem daunting, becoming a CPA will provide you with greater job opportunities and financial stability.
CPA versus CFA-curriculumverschillen
Unlike the CFA exam, which focuses on investment instruments, asset valuation and portfolio management, and estate planning, the CPA exam is designed to test your knowledge of audit procedures and standards, taxes, and accounting and reporting standards for a variety of organizations.
CPA Exam Topics
The CPA exam is divided into four test sections, each approximately 4 hours long. You must pass all four test letters within an 18-month period to become a CPA. The four test letters are as follows:
- Audit and attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
On the CPA exam, you will be tested on the following topics:
- Audit procedures and professional audit standards
- Standards relating to attestation, assurance, accounting and audit engagements
- Business management
- Economy
- Information Technology
- Financial management, strategic planning and operational management
- Accounting and reporting standards applicable to nonprofit organizations and public entities
- Federal tax, ethics, professional and legal liability, and corporate law
CFA-examinationonderwerpen
The CFA program curriculum tests candidates' knowledge in 10 subject areas:
- Ethical and professional standards
- Quantitative methods
- Economy
- Financial statement analysis
- Corporate issuers
- Stock investments
- Fixed income
- Derivatives
- Alternative investments
- Portfolio management and wealth planning
CFA Exams Explained >>
CPA vs. CFA career path
The biggest difference between a CPA and CFA career path is the industry they work in. CFA charterholders typically work in the investment management industry, while you can find CPAs in multiple industries.
CPA-careerpaden
There are many directions you can take in your career after becoming a CPA. Deciding which industry you want to work in is the first decision you need to make. Your options include:
- Government accounting:Public accounting firms provide a variety of clients with accounting services, such as financial planning, bookkeeping, and audit preparation. It is common to work in public accounting for a few years before moving to private accounting or another more specialized form of accounting.
- State accounts:State auditors conduct audits, assess the effectiveness and efficiency of various government agencies, oversee public funds, and investigate white-collar crime for the FBI.
- Private accounting:Private accountants work for the internal accounting department of one company. They manage the company's financial records, prepare financial reports and assess the company's tax performance.
- Nonprofit accounting:Nonprofits need accountants who can perform specialized tasks. These include the evaluation of donor-restricted assets that can only be used for specific purposes, accounting for different types of services and programs, and fundraising.
- Academy:Accounting professors not only teach students about accounting and research into accounting theory, but also often serve as accounting consultants for companies, firms and in litigation.
CFA-careerpaden
There are several directions that CFA charterholders can take after earning the CFA designation, including using it to advance their current career or look for a new career, such as:
- Financial analyst
- Risk analyst
- Valuation Analyst
- Portfolio manager
- C-level executive
Career Paths for Financial Analyst >>
CFA Charterholder vs. CPA-salaris
Salaries can vary widely for both CFAs and CPAs, based on location, experience level, and company size. That being said, thusPayment weight the average salary for a CFA is $102,000 and the average salary for a CPA is$94.000.
CFA Charterholder Salary Ranges
According to Payment weightCFA charterholders in the United States can earn between $60,000 and over $200,000 annually. The wide range is a reflection of thiseverything you can do with the charter. Bonuses and years of experience also make a difference.
Here are the average salaries for some of the most common positions for CFA charterholders:
- Research Analyst:CFA charterholders who are research analysts earn an average of $77,000 per year, according to Payscale.
- Financial Advisor:Financial advisors with the CFA charter earn an average salary of $83,000 annually.
- Investment Analyst:Investment analysts with the CFA charter earn an average salary of $78,000 annually.
- Portfolio manager:The average salary for a portfolio manager with the CFA charter is $102,000.
- C-level manager:Payscale says CFA-chartered CFOs have an average annual base salary of $173,000.
Given the CFA Charter? Before you choose your CFA exam date, download this free eBook before you decide to sit for the CFA exam.
CPA salary increase
Payment weightsays the average salary for CPAs is $94,000. CPAs have at least completed certification requirements after earning a bachelor's degree in accounting and are qualified for better positions than general accountants. If a CPA has a master's degree, the average annual income is $80,000boekhouding.com, which shows how important experience, location and company size are for salaries.
Here isaverage salariesfor some of the most common positions for CPAs:
- Accountant en accountant:Accountants and accountants who are CPAs earn an average annual salary of $69,000.
- Financial inspector:Financial controllers oversee and manage a company's accounting functions. The average annual salary for CPAs in this position is $98,000.
- Business controller:CPAs in the executive role of business controller can expect an average salary of $114,000 per year.
- Head accounting:The average annual salary for CPAs who are CFOs is $151,000.
CFA vs CPA difficulty
Obtaining the CFA charter or CPA certification is a long process that requires a degree, several years of experience (in most states), and a passing score on a long, difficult exam. This table lists the requirements to become a CFA and CPA:
| CFA | CPA | |
| Education | Bachelor's degree (or equivalent) | Bachelor's degree; 150 hours of pre-licensure training (including bachelor's degree) |
| Experience | 4 years of work experience | 2 years of work experience (in most states) |
| The exam | Pass levels I, II and III of the CFA exam | Pass all four CPA exam parts: AUD, BEC, FAR, and REG within 18 months |
The pass rates for both the CFA and CPA exams are updated with each test administration. Learn more aboutPass rates for CFA examsInCPA Exam Pass Rates.
Which qualification is more difficult to obtain will depend on your individual circ*mstances and strengths. Make your decision based on what will most help develop your career, and not on what you think is easier to achieve. Whichever certification you choose, the hard work will pay off in the long run.
CFA versus CPA-infographic
![CFA vs. CPA Salary: Who Earns More? (1)](https://i0.wp.com/www.schweser.com/\"prod-sitefinity-library.kappro.com/images/schweser-library/default-album/blog-images/generic-schweser-blog-images/mkt_001705_cfa_vs_cpa_infographic7956ef5d-9635-4580-a663-caf1d348e60a-resizeddac408f4-b266-4b90-9370-e1f787710f78.jpg?sfvrsn=b6331e7d_3\" "CFA vs. CPA Salary: Who Earns More? (1)")
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Become one of themCFA (Chartered Financial Analyst)charter holder or a CPA (Certified Public Accountant) is a big step in your career. Both designations are impressive additions to your resume and great career boosters. If you are considering obtaining either of these certifications, it is important to understand the differences between them. Although they are both related to finance, they can take your career in very different directions.
TABLE OF CONTENTS:
- Pros and cons of becoming a CPA or CFA
- CPA vs CFA Exam Differences
- CPA vs. CFA career path
- CFA Charterholder vs. CPA-salaris
- CFA vs CPA difficulty
CFA Charterholder vs. CPA: What's the difference?
CFA charterholders and CPAs both work with financial data, consult with clients, and assess the viability of various companies and organizations; however, the results of these tasks differ depending on which reference you have. CFA charterholders focus on understanding market conditions, evaluating companies and determining the best way for companies or individual clients to invest their money. They use investments to generate income for their clients, and some charterholders buy or sell securities, funds and more on behalf of their clients. CFA charterholders are likely to be investment analysts, financial advisors and portfolio managers. Some even become Chief Financial Officers (CFOs).
CPAs, on the other hand, produce financial data. They can calculate taxes owed or review business practices to find ways to save money. They must also ensure compliance with applicable financial regulations. Some CPAs use their accounting skills to identify evidence of fraud or other crimes.
Is it worth becoming a CPA?
If becoming a CPA appeals to you, weigh the pros and cons of preparing for and taking the CPA exam.
Benefits of Becoming a CPA
- Any salary increases will offset the costs of preparing for and taking the exam itself.
- During exam preparation, you will learn skills and knowledge that will help you become a better accountant.
- Becoming a CPA indicates that you are committed to your profession, which can give you more options and flexibility in your career.
Disadvantages of Becoming a CPA
- It is expensive. The cost of the CPA exam itself varies by state, but expect to spend about $1,000 on registration and testing fees, plus several thousand dollars for an evaluation course (which we highly recommend). Some companies reimburse their employees for CPA exam-related costs, so check with your employer to see if you qualify.
- It takes a lot of time. It is recommended that you spend 300-400 hours preparing for the CPA exam, in addition to the time required to take the test (~16 hours total).
Keep in mind that although the financial and time costs you will inevitably have to invest in becoming a CPA may seem daunting, becoming a CPA will provide you with greater job opportunities and financial stability.
CPA versus CFA-curriculumverschillen
Unlike the CFA exam, which focuses on investment instruments, asset valuation and portfolio management, and estate planning, the CPA exam is designed to test your knowledge of audit procedures and standards, taxes, and accounting and reporting standards for a variety of organizations.
CPA Exam Topics
The CPA exam is divided into four test sections, each approximately 4 hours long. You must pass all four test letters within an 18-month period to become a CPA. The four test letters are as follows:
- Audit and attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
On the CPA exam, you will be tested on the following topics:
- Audit procedures and professional audit standards
- Standards related to certification, insurance, accounting and audit tasks
- Business management
- Economy
- Information Technology
- Financial management, strategic planning and operational management
- Accounting and reporting standards applicable to nonprofit organizations and public entities
- Federal tax, ethics, professional and legal liability, and corporate law
CFA-examinationonderwerpen
The CFA program curriculum tests candidates' knowledge in 10 subject areas:
- Ethical and professional standards
- Quantitative methods
- Economy
- Financial statement analysis
- Corporate issuers
- Stock investments
- Fixed income
- Derivatives
- Alternative investments
- Portfolio management and wealth planning
CFA Exams Explained >>
CPA vs. CFA career path
The biggest difference between a CPA and CFA career path is the industry they work in. CFA charterholders typically work in the investment management industry, while you can find CPAs in multiple industries.
CPA-careerpaden
There are many directions you can take in your career after becoming a CPA. Deciding which industry you want to work in is the first decision you need to make. Your options include:
- Government accounting:Public accounting firms provide a variety of clients with accounting services, such as financial planning, bookkeeping, and audit preparation. It is common to work in public accounting for a few years before moving to private accounting or another more specialized form of accounting.
- State accounts:State auditors conduct audits, assess the effectiveness and efficiency of various government agencies, oversee public funds, and investigate white-collar crime for the FBI.
- Private accounting:Private accountants work for the internal accounting department of one company. They manage the company's financial records, prepare financial reports and assess the company's tax performance.
- Nonprofit accounting:Nonprofits need accountants who can perform specialized tasks. These include the evaluation of donor-restricted assets that can only be used for specific purposes, accounting for different types of services and programs, and fundraising.
- Academy:Accounting professors not only teach students about accounting and research into accounting theory, but also often serve as accounting consultants for companies, firms and in litigation.
CFA-careerpaden
There are several directions that CFA charterholders can take after earning the CFA designation, including using it to advance their current career or look for a new career, such as:
- Financial analyst
- Risk analyst
- Valuation Analyst
- Portfolio manager
- C-level executive
Career Paths for Financial Analyst >>
CFA Charterholder vs. CPA-salaris
Salaries can vary widely for both CFAs and CPAs, based on location, experience level, and company size. That being said, thusPayment weight the average salary for a CFA is $102,000 and the average salary for a CPA is$94.000.
CFA Charterholder Salary Ranges
According to Payment weightCFA charterholders in the United States can earn between $60,000 and over $200,000 annually. The wide range is a reflection of thiseverything you can do with the charter. Bonuses and years of experience also make a difference.
Here are the average salaries for some of the most common positions for CFA charterholders:
- Research Analyst:CFA charterholders who are research analysts earn an average of $77,000 per year, according to Payscale.
- Financial Advisor:Financial advisors with the CFA charter earn an average salary of $83,000 annually.
- Investment Analyst:Investment analysts with the CFA charter earn an average salary of $78,000 annually.
- Portfolio manager:The average salary for a portfolio manager with the CFA charter is $102,000.
- C-level manager:Payscale says CFA-chartered CFOs have an average annual base salary of $173,000.
Given the CFA Charter? Before you choose your CFA exam date, download this free eBook before you decide to sit for the CFA exam.
CPA salary increase
Payment weightsays the average salary for CPAs is $94,000. CPAs have at least completed certification requirements after earning a bachelor's degree in accounting and are qualified for better positions than general accountants. If a CPA has a master's degree, the average annual income is $80,000boekhouding.com, which shows how important experience, location and company size are for salaries.
Here isaverage salariesfor some of the most common positions for CPAs:
- Accountant en accountant:Accountants and accountants who are CPAs earn an average annual salary of $69,000.
- Financial inspector:Financial controllers oversee and manage a company's accounting functions. The average annual salary for CPAs in this position is $98,000.
- Business controller:CPAs in the executive role of business controller can expect an average salary of $114,000 per year.
- Head accounting:The average annual salary for CPAs who are CFOs is $151,000.
CFA vs CPA difficulty
Obtaining the CFA charter or CPA certification is a long process that requires a degree, several years of experience (in most states), and a passing score on a long, difficult exam. This table lists the requirements to become a CFA and CPA:
| CFA | CPA | |
| Education | Bachelor's degree (or equivalent) | Bachelor's degree; 150 hours of pre-licensure training (including bachelor's degree) |
| Experience | 4 years of work experience | 2 years of work experience (in most states) |
| The exam | Pass levels I, II and III of the CFA exam | Pass all four CPA exam parts: AUD, BEC, FAR, and REG within 18 months |
The pass rates for both the CFA and CPA exams are updated with each test administration. Learn more aboutPass rates for CFA examsInCPA Exam Pass Rates.
Which qualification is more difficult to obtain will depend on your individual circ*mstances and strengths. Make your decision based on what will most help develop your career, and not on what you think is easier to achieve. In the long run, the hard work will pay off no matter which certification you choose.
CFA versus CPA-infographic
