Difference Between CFA and CA
CFA focuses on investment management and covers topics in finance like corporate finance, ethics, equity investments, derivatives, and fixed income while preparing you for careers in investment banking, research, and portfolio management. In contrast, CA focuses on accounting, taxation, and auditing and prepares you for careers in budgeting, accounting & auditing, and management accounting.
Choosing between these two tough career options may be very confusing. But since your entire career depends on this decision, perhaps a little information can help you decide.
Appearing for CFA Level 1 examCFA Level 1 ExamThe CFA exam is regarded as one of the most difficult to crack. Your preparation, time management, and sequence plays will all play an important role in your journey.read more? – Do have a look at these awesome 70+ hours of CFA level 1 Training.
You are free to use this image on you website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: CFA vs CA (wallstreetmojo.com)
What is the Chartered Financial Analyst® (CFA®)?
The CFA® program focuses on investment management. The top employers include the most respected financial corporations globally like JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo.
Many of these are top investment banks, but the CFA® program focuses on the knowledge and skills most relevant to the global investment management profession from a practitioner’s standpoint.
Investment professionals who hold the CFA® designation (or CFA® charter) must meet rigorous educational and work experience and ethical conduct requirements.
Only those who complete three graduate-level examinations, four years of work experience, and the annual membership renewal (including Ethics and Code of Professional Conduct Attestation) are permitted to use the CFA® designation. In addition, complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this profession’s distinction.
What is a Chartered Accountant (CA)?
CA is an internationally recognized profession, and a Chartered Accountant can work in all fields of business and finance, for example, taxation, auditing, and general management. In addition, CAs can be employed by government bodies and public and private sectorPrivate SectorThe private sector is a section of the national economy that the government does not own. The business conducted under this sector is carried out by companies or entrepreneurs who focus on profit maximization and customer satisfaction.read more companies. In short, skilled CAs are always in demand in all industries. To become a qualified CA, candidates must qualify for different examinations and a rigorous training process.
A CA can manage financial accounts for an organization, be it tax accountant, management accountant, budget analystBudget AnalystBudget Analyst is a professional data-oriented person. He/she organizes and allocates various financial resources (Income from business/profession, interest income from bank deposits, profits from trading in stocks or shares) by monitoring each spending on an estimation basis and then produces probable surplus/deficit from the said calculations.read more, and of course, the most interesting of all, auditorAuditorAn auditor is a professional appointed by an enterprise for an independent analysis of their accounting records and financial statements. An auditor issues a report about the accuracy and reliability of financial statements based on the country’s local operating laws.read more. The international recognition of this degree gives you the ability to even work abroad under this qualification. The Chartered Accountants’ Institute encourages members to undertake a minimum level of continuing professional development to remain professionally competitive.
CFA vs CA Infographics
CFA and CA Exam Requirements
#1 – CFA® Requirements
- You can appear for CPT after clearing your 12th or directly take up the intermediate exam after you complete your graduation to enter a profession.The CFA® program needs to be completed by mastering the latest syllabus and clearing 3 to 6 hourly examinations.It is important to become a member of the CFA® institute, along with registering as a member of your local CFA® member’s society.Most importantly, you need to adhere to the code of ethics and standard of professional conduct of the CFA® institute.
#2 – CA Requirements
- To enter a profession, you can appear for CPT after clearing your 12th or directly take up the intermediate exam after you complete your graduation.The intermediate exam is divided into two groups to be cleared after completing the IPC level’s first group. The candidate needs to undergo training as an article assistant for a minimum of 3 years in a chartered firm.During the third year of training, the trainee can also work in the industry before appearing for the finals.Before being articled, the trainee also has to complete a 100 hour IT training and soft skills development orientation program.
Comparative Table
Why Pursue the CFA® Designation?
The differentiating benefits of earning a CFA® designation include
Level I
Level II
Level III
Common Proficiency Test (CPT)
Integrated Professional Competence Course (IPCC)
CA Final
Ethical & Professional Standards
Financial Reporting & Analysis
Quantitative Methods
Economics
Corporate Finance
Derivatives
Alternative Investments
Fixed IncomeFixed IncomeFixed Income refers to those investments that pay fixed interests and dividends to the investors until maturity. Government and corporate bonds are examples of fixed income investments.read more
Fixed IncomeFixed IncomeFixed Income refers to those investments that pay fixed interests and dividends to the investors until maturity. Government and corporate bonds are examples of fixed income investments.read more
Portfolio Management & Wealth Planning
Fundamentals of Accounting
Cost Accounting
Mercantile Laws
General Economics
Auditing & Assurance
Cost Accounting & Financial Management
Direct Taxes
Management Accounting & Financial Analysis
Organisation & Management
Fundamentals of Electronic Data Processing
Portfolio ManagerPortfolio ManagerA portfolio manager is a financial market expert who strategically designs investment portfolios.read more
Consultant
Investment Analyst
Strategist
Wealth Manager
Internal Auditor
Management Accountant
Public Accountant
Government Accountant
Level I: Feb 16 – Mar 01, May 18-24, Aug 24-30, Nov 16-22
Level II: May 25 – Jun 01, Aug 31 – Sep 04
Level III: May 25 – Jun 01, Nov 23-25
Real-world expertiseCareer recognitionEthical groundingGlobal communityEmployer demand
The sheer demand for the CFA® charter speaks to the difference it makes.
More than 245,000 global candidates registered for the June 2020 CFA® exams scheduled to be held in 193 cities across 95 different countries.
Why Pursue CA?
CA gives you the flexibility to work in all industries as an auditor, accountant, or budget analyst. These candidates can offer their services in the capital marketCapital MarketA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more as well. They can set up their practice and develop their clients; they can also work in a CA firm or join companies that can be government, private, and public sectors. CAs can practice this course internationally and are in demand in the manufacturing and finance industry. They do not necessarily need to work on excel sheets, calculations, numbers, and number crunching. They can also work as auditorsAuditorsAn auditor is a professional appointed by an enterprise for an independent analysis of their accounting records and financial statements. An auditor issues a report about the accuracy and reliability of financial statements based on the country’s local operating laws.read more and increase the company’s profitability.
Conclusions
These credentials are of the highest weightage in the accounting and finance industry. Both of which will require dedication and sincere efforts to get through. Whatever you choose, we wish you the very best :-)
If you learned something new or enjoyed the post, please comment below. Let us know what you think. Many thanks, and take care. Happy Learning!
Recommended Articles
This has been a guide to CFA vs. CA. Here we discuss the top differences between CFA and CA professions and their exam requirements. Do we also discuss why to pursue them? You may also have a look at the following articles –
- CFA vs CFP – Which is better?CFA vs CIPM DifferencesMBA or CACA vs CS – What’s the Better?CIMA vs CAIA
