CFA® vs CPA: Breaking Down the Differences

Deciding between becoming a Chartered Financial Analyst (CFA®) or a Certified Public Accountant (CPA)? It’s like standing at a crossroads, trying to figure out which direction will lead you to your ideal career in finance. But don’t worry—you’re not alone in this.

Here’s what you need to know:

Each path has its own set of challenges and rewards. Making the choice isn’t easy, but understanding what each certification involves will help you determine which is the right fit for you.

And just like firms that foster job satisfaction through autonomy, purpose, and growth opportunities—key factors in CPA retention—finding the right path can ensure long-term success and fulfillment. For example, 87% of CFP® professionals believe in the value of certification, showing how important it is to find the right fit for your career.

Are you still feeling torn? I’ll walk you through everything—exams, career options, and salaries—so you can make an informed decision.

Key Takeaways

• CFA® vs. CPA: Both certifications offer distinct career paths. The CFA® focuses more on investment analysis, while the CPA is geared towards auditing and compliance roles.
• Exam Structure: The CFA® exam has three levels, emphasizing investment tools and portfolio management, while the CPA exam consists of four sections, including financial reporting and auditing.
• Career Opportunities: CFA® charterholders often work in roles like equity research and wealth management, whereas CPAs are typically found in auditing, tax preparation, and consulting.
• Salary Potential: Professionals with a CFA® or CPA can expect competitive salaries, with top earners in both fields reaching six figures, depending on experience and location.
• Commitment: Both designations require significant time and effort, with the CFA® demanding around 900 study hours across three levels and the CPA exam taking approximately 400-600 hours.

CFA® vs CPA: What’s Required?

Anyone considering a career in accounting or finance has probably come across both the CFA® and CPA programs. These are two of the most popular professional certifications, but they come with different requirements.

Chartered Financial Analyst Requirements

• Bachelor’s Degree: You’ll need to have a bachelor’s degree or be in your final year of earning it.
• Work Experience: Alternatively, you can qualify with four years of professional work experience or a mix of work and education that totals at least four years.
• Other Requirements: An international passport is necessary, and you must meet the professional conduct standards set by the CFA Institute.

Certified Public Accountant Requirements

If you’re thinking about becoming a CPA, there are a few key qualifications to keep in mind. The CPA certification is highly respected globally, and it opens up career options in fields like tax preparation, auditing, and business analysis.

• Education: A bachelor’s degree with 120-150 college credits is required, depending on the state where you plan to take the exams.
• Experience: Most states also ask for at least one year of accounting work experience under the supervision of a licensed CPA.
• Additional Steps: Some states may require an ethics exam and specific courses in business law or auditing.

CFA® and CPA Exams: What to Expect

CFA® Exam

The CFA® exam is made up of three levels, each focusing on different aspects of the investment industry. Here’s a breakdown:

• Level I: Tests your knowledge of investment tools, along with ethical and professional standards.
• Level II: Focuses on asset valuation and applying analysis to investment management.
• Level III: Concentrates on portfolio management and wealth planning.

Time and Money Commitment

• Study Hours: Each level requires about 300 hours of study time. That’s a total of 900 hours across all three levels! You’ll need to invest in one of the best CFA® courses since tackling these exams alone often leads to failure and wasted time.
• Exam Fees: Fees vary depending on when you register. Early registration costs $940, while standard registration is $1,250. Plus, there’s a one-time enrollment fee of $350.

CPA Exam

The CPA exam consists of four sections, with three core exams and one specialized discipline exam tailored to your career interests. About half of candidates pass the exam on their first try, but you have higher chances if you study with a top CPA prep course. Here’s the breakdown:

• Auditing and Attestation (AUD): Covers audit planning, internal controls, evidence gathering, and ethical standards. Includes recent updates in data analytics, technology in auditing, and professional responsibilities.
• Financial Accounting and Reporting (FAR): Focuses on financial accounting standards for various entities, including public, private, and governmental. Covers U.S. GAAP, IFRS, and essential skills for preparing, presenting, and analyzing financial statements.
• Regulation (REG): Addresses U.S. federal tax laws, business law, and ethics in professional responsibilities. Topics include tax compliance, business structures, and regulatory standards under the AICPA’s Code of Professional Conduct.

You’ll choose one of the following specialization exams:

• Business Analysis and Reporting (BAR): Best suited for those specializing in financial analysis, complex reporting, and interpreting data for business insights.
• Information Systems and Controls (ISC): Tailored for individuals keen on managing data integrity, IT controls, and cybersecurity within financial environments.
• Tax Compliance and Planning (TCP): Emphasizes tax regulations and strategic planning, ideal for careers in tax advisory or public accounting.

CPA Exam Fees

Fees can vary, but most candidates can expect to pay around $345 per exam section, plus a registration fee of about $50. Additional fees may apply when obtaining your CPA license after passing the CPA exams and vary by state.

Career Paths for CFA® and CPA Professionals

When deciding between a CFA® and CPA certification, your future career options play a big part. Here’s a look at what each path can offer.

Career Options for CFA® Charterholders

If you’re thinking about earning a CFA® charter, you’re likely aiming for roles in investment management and related fields. Here are some potential careers:

• Risk Management: Assess and manage financial risks for companies, helping to minimize potential losses and make informed investment decisions.
• Equity Research: Evaluate stocks and other securities, providing detailed reports and recommendations for investors and financial institutions.
• Corporate Finance: Manage financial planning, capital structure, and strategic investment decisions within companies.
• Wealth Management: Advise high-net-worth clients on building and managing their portfolios, focusing on long-term financial goals and wealth preservation.

Career Options for CPAs

If you’re leaning toward becoming a CPA (even without an accounting degree), you’ll have a broad range of career paths:

• Consulting Services: Offer specialized advice to companies on improving financial performance, streamlining processes, and ensuring compliance with regulatory requirements.
• Financial Controller: Oversee all accounting activities within a company, including budgeting, financial reporting, and maintaining accurate financial records.
• Internal Auditing: Assess internal controls, ensure financial accuracy, and identify potential risks, playing a key role in improving operational efficiency.

Both CPA and CFA® charterholders have distinct roles within the finance industry. CFAs are more focused on investment analysis and portfolio management, while CPAs are experts in financial reporting and regulatory compliance.

CFA® vs CPA Salaries

According to data from ZipRecruiter, both CFA® charterholders and CPAs can expect competitive salaries, but the industries in which they work and their experience levels play a big role in how much they earn. Let’s break it down:

CFA® Salaries

If you’re pursuing the CFA® designation, you’ll often find high-paying roles in areas like portfolio management and financial analysis. Here’s what you can expect to make as a CFA® based on experience:

• Starting Salary: Entry-level CFAs can expect to earn around $65,500 per year, placing them in the 25th percentile of earners.
• Average Salary: Most CFAs make an average of $100,458 annually, with salaries ranging from $65,500 to $130,000, depending on the role and location.
• Mid-Career Salary: Professionals with more experience, typically 5-9 years, can earn salaries in the range of $88,000 to $130,000, while those with 10-19 years of experience may earn up to $153,500.
• Top Earners: Those in the top 10% of earners can make around $153,500 annually.

Source: ZipRecruiter

CPA Salaries

For Certified Public Accountants, salaries can also be quite rewarding, especially as you gain more experience. Here’s a breakdown:

• Starting Salary: Entry-level CPAs typically make around $75,000 annually, placing them in the 25th percentile of earners.
• Average Salary: The average CPA salary is approximately $91,980, with a range between $75,000 and $103,000 depending on industry and location.
• Mid-Career Salary: CPAs with 3-5 years of experience generally earn between $90,000 and $103,000, while those with 6 or more years can see salaries climb to around $125,000.
• Top Earners: CPAs in the 90th percentile can make as much as $125,000 annually, especially in high-demand areas and specialized roles.

Source: ZipRecruiter

Benefits of Earning Both the CFA® and CPA

Getting both the CFA® and CPA designations can give you a serious edge in the job market. This combination merges expertise in financial analysis and accounting principles, creating a unique and powerful skill set. Here’s why having both can be a game-changer:

• Wider Career Options: You’ll be able to move between roles in corporate finance, investment analysis, and financial planning, opening doors in both the finance industry and public accounting.
• Higher Earning Potential: Having expertise in both areas makes you more valuable to employers, which can lead to better job offers and increased salary potential.
• More Flexibility: With both designations, you’ll have the flexibility to work in roles that require knowledge of financial analysis and financial statements, making you more versatile.

Whether you’re aiming for a CFO position, working in private equity, or advising on investment strategies, earning both the CPA and CFA® will help you stand out in the competitive world of finance.

Professional Insights

When it comes to the CFA® vs CPA debate, hearing from professionals who’ve taken both paths can provide valuable insights. In a Reddit thread discussing the challenges of both certifications, several users shared their personal experiences—and I’ve got to say, some of these really hit home for me.

One user shared: “CPA is easier content-wise but harder in the sense that you have a much shorter window…to pass all 4 sections.” I’ve heard this argument often, and it’s a great point. The compressed timeline for the CPA exams can make the process stressful, but the CFA’s extended timeline doesn’t make it any less difficult.

A different user who had completed CFA® Level 3 said, “Total studying hours across all 4 sections for CPA averages out to around 300-400 hours. That study time equates to just one level of CFA.” This comparison highlights just how intense the CFA® exams can be, with each level requiring significant time and dedication.

A common theme throughout the thread is that both paths are difficult, but the CFA® seems to challenge candidates more with depth of material. One user summed it up: “The CPA is more of a sprint, while the CFA® is a marathon.”

In the end, choosing between the CFA® and CPA seems to depend on your career goals, but both will test your endurance and commitment.

CFA® vs. CPA: Which Career Path Fits You?

Choosing between the CFA® and CPA designations can be tough, but it all comes down to your career goals. Here’s a look at different scenarios to help you decide which path is right for you.

• Investment Management and Financial Markets: If you’re passionate about working with investment strategies, portfolio management, and navigating the financial markets, the CFA® charter might be your best bet.
• Auditing and Financial Reporting: On the other hand, if you see yourself involved in financial reporting, auditing, and ensuring companies comply with tax laws and accounting standards, the CPA certification is probably for you.
• Analyzing Companies and Investments: If you love diving into the details of companies and investment opportunities to make informed decisions or advise clients, the CFA® is well-suited for you.
• Corporate Finance and Consulting: If you’re more interested in corporate finance, mergers and acquisitions, or financial consulting, the CPA license could open the right doors.
• Risk Management and Global Strategies: If your goal is to become an expert in risk management, derivatives, and global financial strategies, the CFA® program offers extensive training in these areas.
• Leading as a CFO or Public Accountant: If you envision yourself leading the financial direction of a company as a Chief Financial Officer or running your own accounting firm, the CPA designation is essential.

Conclusion

So, what’s it going to be—CFA® or CPA?

By now, you’ve seen the differences between investment management and financial accounting, the exam hurdles, and the types of careers each path offers. Whether you’re more excited about managing portfolios or ensuring financial compliance, your choice should come down to what truly motivates you.

If you’re all about diving deep into the markets and making those big investment decisions, the CFA® is probably calling your name. But if you’re ready to master the art of financial reporting and want to help businesses stay on track, the CPA is the way to go.

The bottom line?

Whichever you choose, both certifications open doors to rewarding careers in finance. Take your time, consider what excites you most, and go for it!

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