When considering a career in accounting and corporate finance, people often get confused about ACCA vs CFA which is better choice? Both CFA and ACCA are rewarding programs with well-paying careers. But they serve different professional paths.
This article will walk you through the major differences between CFA vs ACCA, alongside a comparison with other certifications to help you make informed decisions.
Chartered Financial Analyst (CFA) and Association of Chartered Certified Accountants (ACCA) are prestigious global certifications.
ACCA is more suited for those who love challenges and want to excel in accounting careers. CFA, on the other hand, is suitable for those wanting to develop skills in finance, equity, and investment.
But, there’s a lot more to know to understand to clear up all doubts. These key CFA vs ACCA differences are worth considering.
CFA
CFA, abbreviated as Chartered Financial Analyst, is a comprehensive course in advanced investment analysis and real-world portfolio management skills.
The program is suitable for those interested in financial analysis, investment management, portfolio management, risk management, and equity research. The CFA charter has a global network of over 200,000 charterholders in 164 countries. Thus, this degree is often seen as the ‘gold standard’ in the investment industry. CFA is relevant in both public and private sectors.
ACCA
ACCA is a professional accounting program offered by the global body – Association of Chartered Certified Accountants. Recognised in more than 180 countries, it has over 200,000 members and around 6,00,000 students.
The ACCA qualification prepares candidates for various roles, including auditors, tax advisors, financial managers, and business consultants. The ACCA is particularly relevant in the public accounting sector.
Have a look at other factors to get a better idea.
Eligibility And Entry Requirements For ACCA And CFA
CFA Program Prerequisites
Educational Requirements
- Candidates must hold a bachelor’s degree or be in the final year of their undergraduate studies.
- Alternatively, candidates can qualify with four years of professional work experience or a combination of higher education and work experience totalling four years.
Professional experience
It is not mandatory to have work experience to pursue a CFA.
CFA Syllabus and Papers Overview
The CFA Program is structured into three levels. Each level focuses on different aspects of investment management and financial analysis.
Level I
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Statement Analysis
- Corporate Issuers
- Portfolio Management
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
Level II
The CFA Level 2 has similar topics to level 1. However, the focus is more on asset valuation and analysis. The curriculum includes the following topics:
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Statement Analysis
- Corporate Issuers
- Equity Valuation
- Fixed Income
- Derivative Investments
- Alternative Investments
- Portfolio Management
Level III
- Portfolio Management
- Fixed Income
- Equity Investments
- Derivatives
- Alternative Investments
- Economics
- Ethical and Professional Standards
ACCA Program Prerequisites
Educational Background
- Candidates must have completed their secondary education with a focus on commerce subjects.
- Those pursuing a bachelor’s degree in commerce or related fields can also enrol.
Professional Experience
- Candidates are required to complete three years of relevant work experience in finance or accounting to qualify for ACCA membership
ACCA Syllabus and Papers Overview
The ACCA qualification consists of 13 papers divided into three levels.
- Applied Knowledge Level (3 Papers)
- Business and Technology
- Financial Accounting
- Management Accounting
Applied Skills Level (6 Papers)-
- Corporate and Business Law
- Financial Management
- Financial Reporting
- Performance Management
- Taxation
- Audit and Assurance
Professional Level (4 Papers)
- Mandatory Subjects
- Strategic Business Leader
- Strategic Business
Elective subjects (Any 2)
- Advanced Financial Management
- Advanced Performance Management
- Advanced Taxation
- Advanced Audit and Assurance
The ACCA and CFA institutes offer study guides and approved textbooks for each paper. However, given the difficulty and vast syllabus, coaching is important.
ACCA vs CFA: Which Is Harder?
ACCA vs CFA which is a harder course? This question may pop up in your mind.
While both have their own set of challenges, CFA is often regarded as more difficult. This is majorly due to its lower pass rates, intensive study, and specialised focus requirements.
As per the last 10 years’ statistics, the average passing rate for CFA ranges from 41-52%. Students need rigorous study of approximately 1000 hours spanning over 3-4 years.
The pass rates for ACCA exams are generally higher, ranging upto 50%, depending on the exam. While still challenging, the ACCA program is often considered more manageable given the easily available study resources.
To know in-depth about ACCA difficulty level, read ‘Acca Pass Percentage: Exam Difficulty & Top Scoring Subjects’
Finally, the depth and complexity of the topics are also varied. In CFA Levels II and III, candidates must apply their knowledge in advanced financial scenarios. ACCA curriculum is more inclined towards accounting and auditing, which candidates with a bachelor’s specialisation in accounting can manage easily.
CFA Salary vs ACCA Salary: Who Earns More?
When looking for key differences between CFA vs ACCA , it is important to consider the average salary range, as well as the typical career paths associated with each qualification.
CFA vs ACCA Salary
The salaries of both professional courses are highly competitive. However, CFA professionals earn more than ACCA professionals.
Here’s a breakdown of CFA salary vs ACCA salary:
Level | ACCA Average Salary (₹) | CFA Average Salary (₹) |
Entry-Level | ₹3,00,000 – ₹6,00,000 | ₹4,00,000 – ₹8,00,000 |
Mid-Career | ₹7,00,000 – ₹12,00,000 | ₹8,00,000 – ₹15,00,000 |
Senior-Level | ₹12,00,000 – ₹20,00,000 or more | ₹15,00,000 – ₹25,00,000 or higher |
Note: The CFA salary vs ACCA salary structure can vary based on geographic location, industry, and experience.
Career Paths: CFA vs ACCA
CFA
The top employers are mostly banks like JP Morgan, HSBC, Credit Suisse, etc, and the most common career paths for charterholders include:
- Investment management
- Equity research
- Corporate finance
- Risk management
- Portfolio Modelling
- Investment banking
- Sales and trading
ACCA
ACCA professionals have a broader career options, including roles in:
- Accounting Management
- Auditing
- Taxation
- Financial Manangement
How Do CFA And ACCA Compare With Other Certifications Like CPA, CA, And MBA?
While considering CFA and ACCA, you may also consider opting for other certifications like MBA, CPA, or CA. While they share some similarities, each program has its own unique focus and career upheaval.
This section covers a comparative analysis of ACCA vs CPA vs CFA to give you a better idea.
ACCA vs CPA vs CFA
Here are the key pointers of difference between ACCA vs CPA vs CFA:
Focus
CFA– Investment management and portfolio analysis
ACCA – Accounting, tax and business management
CPA– Accounting, auditing, taxation
Regional Relevance
CFA– Highly regarded worldwide, especially in North America and Europe
ACCA– Globally recognised, especially in Europe, Asia, and Africa
CPA– Primarily recognised in the United States, with some global recognition
Career Opportunities
CFA– Investment banking, asset management, hedge funds, private equity
ACCA– Financial analyst, auditor, tax consultant, management accountant, corporate finance roles
CPA – Public accounting firms, corporate accounting, taxation, financial analysis
Is CFA Better Than CA?
The answer is subjective. CFA is a globally recognised degree, whereas CA is a traditional accounting designation. Looking at the career prospects, CFA holders are in high demand in banking asset management, hedge funds, and private equity firms. CA’s have a broader range of options within accounting, auditing, taxation, financial consulting, and corporate finance.
Ultimately, the “better” qualification depends on your career goals. If your passion lies in investment analysis and financial decision-making, CFA program is the right fit for you. If accounting, auditing, and taxation are your interests, CA is the way to go. Some professionals even pursue both designations to broaden their skill set.
CFA vs MBA: Which Is More Lucrative?
It totally depends upon your career aspirations. If you have strong management skills with an entrepreneurial mind and want leadership roles, then opting for an MBA might be your best option.
A CFA is a more specialised course suitable for those looking for a career in finance or investment. Another advantage is that it is a self-study program with global access. So, knowledge is not bound by classroom boundaries. This flexibility makes it a lucrative career option.
CFA degree holders are valued for their deep technical knowledge in investment management, financial analysis, and portfolio management. Hence, CFA professionals typically have high earning potential. MBA professionals witness gradual increments in salary if they graduate from top-tier institutes.
How To Choose Between ACCA And CFA For Your Career?
To choose between the two, you may consider the following pointers:
- In the end, it comes to personal goals and interests. Are you drawn to investments, managing portfolios, and making strategic decisions? Then, choose CFA. If you have a strong interest in accounting, auditing, or taxation, you can opt for ACCA.
- CFA is generally recognised globally, while ACCA has a strong regional presence. So, you can choose accordingly.
- The total cost for obtaining the ACCA qualification typically ranges from ₹3.5 to ₹4 lakhs, including exam fees and study materials. But, CFA is a little pricey on budget, with costs around ₹1.5 to ₹2 lakhs per level. This excludes study materials.
ACCA vs CFA Which Is Better?
ACCA offers a broader scope in accounting, auditing, taxation, and financial management. It is suitable for students or professionals interested in those areas. You also have the flexibility of studying from anywhere in the world.
CFA specialises in investment analysis, portfolio management, and financial planning. CFA is ahead in terms of quality and salary scale. CFA is, thus, better suited option for those aiming for roles in investment banking, asset management, or research.
Can You Do CFA After ACCA?
Absolutely, pursuing a CFA after completing ACCA can be a strategic career move.
ACCA provides solid accounting core concepts which are the building blocks of CFA. Through CFA, you can gain in-depth knowledge about investment and equity. Thus complementing the accounting knowledge gained through ACCA.
However, there are a few challenges.
Both courses demand time commitments. You need to study 300 hours for each level.
ACCA and CFA are expensive courses involving enrolment costs of around 3.5 to 4 lakhs INR. Also, the number of attempts, coaching and extra material costs can vary.
To be an ACCA member, you need professional experience.
While there is some overlap in financial accounting and economics subjects, CFA still prioritises investment analysis and portfolio management. It needs extensive study.
So, you must weigh down all points before making a decision.
Is CFA Good For Accounting Careers?
While the CFA is primarily associated with investment analysis and portfolio management, it can complement an accounting career.
A CFA can enhance an accountant’s understanding of financial markets, investment valuation, and risk management. This knowledge can be valuable in roles like financial analysis, corporate finance, and treasury management. However, for core accounting functions, ACCA is preferred.
Frequently Asked Questions About 'CFA vs ACCA'
CFA vs ACCA key differences include:
- Organising Body – ACCA institute in the UK governs ACCA. Whereas CFA is administered by the CFA Institute, USA.
- Core Focus – ACCA focuses on accounting, auditing, and taxation. CFA specialises in investment and strategic management, risk management, portfolio modeling, and equity research.
- Course Structure – CFA has three levels – Levels 1,2 and 3. The ACCA course is divided into knowledge, skill, and professional levels.
- Years of Completion – CFA -minimum of 4 years; ACCA – 3 to 4 years.
While both are highly competitive degrees, CFA holders have a slight edge in earning more than ACCA professionals.