CPA is the ‘Black belt’ in accounting. CPA is a highly recognized global credential for advancing a career in finance. Globally, a CPA license is mandatory for specific jobs like independent auditing. With global accounting knowledge and expertise, CPAs earn 10%-15% more than regular accountants.
CERTIFIED PUBLIC ACCOUNTANT (CPA)
CPA is the ‘Black belt’ in accounting. CPA is a highly recognized global credential for advancing a career in finance. Globally, a CPA license is mandatory for specific jobs like independent auditing. With global accounting knowledge and expertise, CPAs earn 10%-15% more than regular accountants.
CHARTERED FINANCIAL ANALYST (CFA)
CFA is focused on investment management. Top employers of chartered financial analysts are JPMorgan, Citigroup, Credit Suisse, Bank of America, UBS, Deutsche Bank, HSBC etc. The CFA Program focuses on the expertise and skills most relevant to global investment management.
Educational Prerequisites - In order to appear for the CPA exam, candidates should have completed a Bachelor's degree and acquired 120 credits. However, in the Indian context, a Bachelor’s degree is earned after three years and this translates into 90 credits only (If the degree is from a NAAC A college/institution though, after 3 years, 120 credits are awarded and the candidate can appear for the exam just with the bachelor's degree). In order to acquire the remaining 30 credits, many students pursue a Master’s degree or enroll for any other equivalent PG course.
For CFA, you would require only a bachelor’s degree. CFA would also require four years’ professional experience in a related field that has a direct role in the investment banking process. Also, they need to be members of the CFA Institute.
To obtain a CPA degree, applicants must clear the CPA Exam, gain required work experience, meet additional educational requirements and clear the Ethics exam. For the CFA qualification, candidates who complete three graduate-level examinations, have four years of work experience, and renew their membership annually are permitted to use the CFA designation.
WHY PURSUE CPA?
CPAs are in high demand in the Big 4 companies like KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte. As companies function internationally, global accounting acumen is the need of the hour. A CPA license is extensively appreciated in MNCs and global companies as it is an indicator of quantitative skills. A CPA can work in varied fields such as audit, tax and management consulting, hedge funds, management accounting, financial analysis and cash management etc.
Why pursue CFA?
CFA is one of the best options to get into an investment bank or else you need to have an MBA from one of the top institutes.
The decision to take up either CPA or CFA credential is completely dependent on what field you want to work in. Both CPA and CFA are focused on areas of accounting and investments respectively and unique in their streams.
