CA vs. CFA are two of the most intriguing and demanding professional career paths in the corporate world. However, aspirants frequently inquire as to which is preferable for them. Deciding between good and terrible is simple, but choosing between good and good is most difficult, and this is where most aspirants get lost. However, because your entire career is solely dependent on this one decision, perhaps a little information will help you decide.
CFA focuses on investment management and encompasses finance topics such as corporate finance, ethics, equity investments, derivatives, and fixed income while educating you for employment in investment banking, research, and portfolio management. CA, on the other hand, concentrates on accounting, taxation, and auditing and trains you for employment in budgeting, accounting, auditing, and management accounting.
The Institute of Chartered Accountants India administers the CA Chartered Accountancy or CA exam (ICAI). A Chartered Accountant, also known as a Certified Public Accountant, is a professional accountant who works for various accounting firms or organisations. A CA oversees accounting systems, generates monthly financial statements, submits tax returns, and offers consulting services. The majority of CAs choose to specialise in the tax procedure.
As a CA, you can work as an analyst, auditor, accountant, or consultant in several industries. CAs can also provide services in the capital markets.
CAs can start their own businesses, build a customer base, and provide financial services and tax advice to people, or they can work for the government, public, or private sectors. CAs are in high demand in the manufacturing and banking industries. Most commerce aspirants regard it as a very viable settled career option.
- Oversee the accounting department’s duties as the head of the accounting department. • Developing and sustaining accounting systems and practices.
- Align income statements.
- Compile monthly financial reports.
- Examine and approve internet banking payments.
- Maintain conformity with the state revenue service.
- Assist with accounting and reporting continuously.
- Oversee the entire financial process.
- Create a budget report for expenses.
- Reporting and audits on financing
The CFA Institute offers Chartered Financial Analyst (CFA) certification worldwide. Employment here entails investment management and wealth management in general. The CFA program primarily focuses on information and expertise relevant to the investment and management professions. According to the CFA Institute, the minimum time required to obtain the CFA designation is as follows:
- Approximately four years to finish the curriculum
- Six months of preparation for each exam
- Over 300+ hours of study time
Due to a lack of academic skills or responsibilities, several candidates fail after rigorous studies and never reach the position, and there is fierce competition on top of this. This program has three levels and requires four years of work experience. You can only appear for the CFA exam once you complete your graduation. A CFA Institute certification allows one to join the worldwide investment network and a respected group of elite investment professionals. It also qualifies the individual for a variety of investments and associated sectors.
Individuals with CFA certification are recruited immediately by large multinational corporations such as JPMorgan Chase, Royal Bank of Canada, Morgan Stanley Wealth Management, HSBC Holdings, PricewaterhouseCoopers BofA Securities, & BlackRock to name a few.
- Credit analysis.
- Developing investment strategies and possibilities; and
- Investment banking.
- Providing advice and consultancy to businesses, financial assistance, and money-making investment options.
- Investigate and monitor a company’s or an individual’s financial status.
CA vs CFA – Differences
|Eligibility||Candidates must have received at least a 50% in their 10+2 from a recognised institute and board. They must take the requisite entry tests for the program, such as the CPT, and enrollment in the CA program has no age cap.||Candidates must hold a Bachelor’s degree or equivalent from a recognised institution in either discipline, with a minimum score of 55%. Candidates must be in their last year of a bachelor’s degree program at admission to qualify for the CFA program and must have at least four years of relevant job experience.|
|Focus||CA gets regarded as an expert in accounting, taxation, law, auditing, and finance.||CFA focuses solely on Finance.|
|Area||The ICAI organises this Indian
|The CFA Institute organises and recognises the CFA course.|
|The CA program gets divided into three levels, with 3 years of practical training required after the 12th grade, for 4.5 years total.||The CFA program is similarly divided into three levels, with a minimum of four years of practical training experience required after completion.|
|Demand||Demand CAs are in high demand since they are only permitted to audit a company’s financial statements.||Many national and multinational companies seek CFAs when seeking a candidate to be an expert in finance and manage their investments.|
|CA is a paper-based format that is subjective.||CFA is an MCQ-based paper format involved in passing this paper.|
|Exams are spaced out over 16 days, with a 1-day preparation leave in between each paper.||Candidates are supposed to prepare for all ten courses in a single day.|
|Exam dates Final exams are held in the month of May||Every year, exams will get held on the first Saturday of June. The level one exam is also gets repeated in December.|
|The pass rate is approximately 32%.||Over the last ten years, the total pass rate has been around 52%.|
CA vs CFA – Job opportunities
|CA Job Roles||CFA Job Roles|
|Chief Financial Officer
Business Services Accountant
Auditor Accounts Clerk
|Private wealth management
CA vs CFA – Average Salary
The average annual pay of a CA and CFA in India varies for several factors, although candidates have some say in how much they get paid. The area in which graduates live, their experience, the job title or specialty, and other factors will all impact their starting income.
|CA Job Profiles||Average Salary (INR) (LPA)||CFA Job Profiles||Average Salary (INR) (LPA)|
|Budget Management||₹ 9.5 Lakhs||Research Analyst||₹ 7.4 Lakhs|
|Strategic Accounts||₹ 9 Lakhs||Equity Research Associate||₹ 5.2 Lakhs|
|Financial Advisor||₹ 8 Lakhs||Financial Analyst||₹ 6.4 Lakhs|
|Financial Analysis||₹ 8 Lakhs||Finance Manager||₹ 10 lakhs|
|Management Auditing||₹ 8.5 Lakhs||Credit Analyst||₹ 6.3 Lakhs|
Better Career Option – CA vs CFA?
CFA is a four-year course that includes relevant job experience and gets recognised by the CFA Institute. Candidates must complete the whole CFA course syllabus and pass a 6-hour test. After passing the CFA tests, candidates can apply for CFA membership from the institute and join the local CFA society.
Students get to enroll in CA courses after completing their 12th grade or following graduation. To become a CA, candidates must first complete article ship training. CA courses provide candidates with a variety of job prospects.
Candidates with a background in accounting are in high demand in the banking and manufacturing industries. Candidates having a CFA background are also in high demand in the investment sector. As a result, both the CA and CFA courses are equally beneficial to students’ employment options.
Both courses have a promising future and a variety of career options. It is up to the applicant to make an informed decision about their job path. If you are interested in auditing and taxation, you should take a CA course, whereas if you are interested in investment banking and portfolio management, you should take a CFA course. It is imperative for aspirants interested in pursuing these courses to enroll in a reputable institute, where you can get all of your questions answered.
It is entirely plausible to hold both a CFA and a CA certification. Pursuing CFA after earning CA is considered a lethal combination in finance and will set you apart from the crowd. This approach will undoubtedly lead to new financial opportunities for you. CAs will easily pass the CFA level 1 exam. One of the benefits of doing CFA after CA is that the material for CA overlaps and is nearly identical to the syllabus for the CFA level 1 exam. A CA+CFA combo not only broadens your horizons but also assists you in understanding financial and auditing concepts better. You will gain new skills and knowledge that will help you advance professionally. Combining these two industries will result in career and personal progress and represent your passion, devotion, and commitment to your industry and employment.
Most CA candidates pursue CFA since it boosts their job prospects and demand inside high-end organisations. Individuals having deep knowledge and skill in the financial sphere get preferred by companies. Following your CA, studying a CFA course qualifies you for a big boost in your income. As a result, the CA+CFA combination automatically qualifies you for the position and boosts your chances of working with top-tier global firms.
Based on the above comparison of CA vs CFA, it is evident that both present the students with great career options. CFA is the choice to go for if you want to work in Investment Banking and Portfolio Management, whereas CA is a good choice if you desire to get into Accounting and Auditing. CA and CFA are both fantastic career alternatives, but it is imperative for the aspirant to pick what is best for him/her.