Earning a CFA (Chartered Financial Analyst) or CPA (Certified Public Accountant) is a significant career milestone. Both are terrific career boosters and impressive additions to your resume. It’s critical to grasp the differences between these two certificates if you’re thinking about getting one. Despite the fact that they are both related to finance, they might lead to completely diverse outcomes in your career. Learn more about the distinctions between the CFA and CPA charters, how to prepare for the two exams, and how obtaining either one might affect your career.
CFA holders and CPAs both deal with financial data, interact with clients, and assess the feasibility of various enterprises and organizations, but the results vary depending on which degree you have. CFAs emphasize analyzing market conditions, assessing businesses, and determining the optimal investment strategy for businesses or individual clients. They generate revenue for their clients through investments. Investment analysts, financial counselors, chief financial officers, and portfolio managers are common jobs for CFAs.
CPAs, on the other hand, create financial records. They may calculate taxes owed or evaluate business processes to find cost-cutting opportunities. CPAs are also expected to ensure applicable financial regulations.
The CPA exam is designed to test the knowledge of auditing methods and standards, taxation, and accounting and reporting requirements for firms, unlike the CFA exam, which focuses on investing tools, asset valuation, portfolio management, and wealth planning.
Next, the CPA exam is organized into four sections. To become a CPA, you must pass all four sections within a period of 18 months and the 4 sections are as follows-
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
On the contrary, all three levels of the CFA program exams cover the majority of the topic areas, though the focus of each level shifts as the tests progress. Fixed income investments and portfolio management account for half or more of the exam by Level III. You must pass Levels I, II, and III of the CFA exams in order to qualify. The topics covered in the CFA exam are as follows-
- Quantitative Methods
- Economics
- Financial Statement Analysis
- Corporate Issuers
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management & Wealth Planning
- Ethical & Professional Standards
The CFA charter is a worldwide recognized financial qualification that symbolizes knowledge, commitment, perseverance, skill, and dedication. Earning a CFA charter will help you advance in your career in finance. The major job roles which are offered to a qualified CFA are as follows-
- Portfolio Manager
- Research Analyst
- Chief-Level Executive
- Consultant
- Risk Manager
- Corporate Financial Analyst
- Relationship Manager
- Financial Advisor
On the other hand, the major job roles which are offered to a qualified CPA are listed below-
- Senior Financial Analyst
- Risk and Compliance Professional
- Corporate Controller
- Accounting Software Developer
- Information technology Accountant
- Personal Financial Advisor
- Finance Director
Now, be it CFA or US CPA, in both cases, Miles Education shall help you with 360-degree support and guidance.
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