CFA vs ACCA
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Difference Between CFA and ACCA
The full form of CFA is Chartered Financial Analyst. CFA institute organizes this course, and individuals with this degree can apply for the position of portfolio manager, research analyst, consultant, relationship manager, risk manager, chief executive, etc. In contrast, ACCA stands for Association of Chartered Certified Accountants. The Association of Chartered Certified Accountants organizes this course, and aspirants with this degree can apply for an accountant, internal auditor, finance manager, tax management, and financial consultant.
To develop a finance career, it has become almost a necessity to earn a relevant degree or credential for requisite knowledge and skills, which can be useful in a specialized area of finance. Some certification programs are available for students, entry-level professionals, and experienced professionals, designed to develop and validate specific capabilities for finance professionals' benefit. CFA and ACCA are two such specialized certification programs of international repute about investment management. ACCA is more into detailed accounting and auditing.
In the course of this article, we will provide detailed information on CFA and ACCA, along with a discussion of their relative merits to help those interested in making an informed choice.
Table of contents
What is CFA?
Chartered Financial Analysts (CFA) Institute offers one of the most competitive financial credentials, widely considered the “gold standard” of financial analysis and investment management. It is undoubtedly one of the most rigorous certification programs in finance, which covers several key knowledge areas in finance, making it the best fit for those interested in developing a career as a financial analyst or in the field of investment banking.
Although an MBA in finance from one of the top institutes could be the preferred credentials for top investment banks, CFA Charter comes in a close second.
What is ACCA?
It is a highly valued credential offered by a global body for professional accountants, the Association of Chartered Certified Accountants (ACCA), to help build key accounting skills and validate aspiring finance professionals’ capabilities.
It is a multi-tier certification program primarily focused on knowledge areas related to accountancy, taxation, and auditing. Though not on the same level as CFA in terms of reputation, it is a widely recognized credential that can significantly help students or accounting professionals boost their career prospects.
CFA vs. ACCA Infographics
CFA and ACCA Entry Requirements
- For CFA You Need: To qualify for CFA, a candidate should have a Bachelor's degree (or they should be in the final year of Bachelor's degree) or four years of professional work experience or four years of higher education professional work experience taken together.
- For ACCA You Need: To qualify for ACCA, one must have completed 10+2 from commerce stream, students pursuing graduation in commerce, and those who have completed BA or B.Sc. with Foundation in Accountancy can qualify.
CFA vs. ACCA Comparative Table
| Section | CFA | ACCA |
|---|---|---|
| Organizing Body | The CFA Institute, USA, governs the exams. | The exams are governed by the Association of Chartered Certified Accountants (ACCA), UK. |
| Pattern | To become CFA qualified, the candidates have to clear three sequential levels.
| To become ACCA qualified, the candidates have to clear three levels of
|
| Duration of Course | If the candidates can clear all the exams on their first attempt, they can complete the course in 4 years. | The mandatory time limit for the course is ten years from passing the first exam. However, most candidates take 3-4 years to complete the course. |
| Syllabus | The syllabus primarily includes the following topics
| The syllabus primarily includes the following topics
|
| Exam Fees | The overall cost of the course comes to be in the range of $2,550 to $3,450, which includes the exam fees and the enrollment fee. The cost primarily varies based on the time of registration. | The overall cost of the course comes to be in the range of ÂŁ1,200 to ÂŁ2,000, which includes the exam fees and the annual subscription and registration fee. The variation in cost is due to the difference in the time of registration. |
| Jobs | Some of the common profiles include
| Some of the common profiles include
|
| Difficulty | The difficulty level is very high as only ~10% of the candidates who start the course can qualify as CFA charterholders. The pass rates of Level-I, Level-II, and Level-III exams conducted in June 2019 were 41%, 44%, and 56%, respectively. | The difficulty level is quite high as only ~30% of the candidates passed in some subjects. For example, the pass rates for the Applied Knowledge exams conducted in March 2020 were in the range of 65% to 82%, while that for the Strategic Professional (Options) exams were 32% to 44%. |
| Exam Date | The upcoming exams for the year 2022 will take place as follows
| The upcoming exams for the year 2022 will take place as follows
|
Why Pursue CFA?
Finance professionals involved in equity research, financial modeling, investment management, and other areas can benefit greatly by earning CFA Charter. It can help enhance career prospects by equipping them with expert knowledge of complex finance areas and adding to their credibility in the eyes of industry-leading employers.
For non-investment professionals, it can prove to be of great advantage as a valued credential, which brings a lot of respectability and opens up new avenues of growth.
Why Pursue ACCA?
Partnering with more than 8,500 employers worldwide, ACCA opens up global work opportunities for students and professionals. Students and finance professionals interested in acquiring specialized knowledge of finance and accounting can opt for ACCA.
Entry requirements are not as stringent as well. Its course curriculum covers accounting, taxation, auditing, and several other critical areas, including law, business studies, financial management, financial reporting, and professional and ethical standards.
Conclusion
CFA is a highly specialized credential, suited for finance professionals seeking to develop expert capabilities in areas related to financial analysis and equity research. However, ACCA is a broad-based accounting certification and a better fit for students or professionals looking to advance their prospects as accounting or auditing professionals.
Both of the credentials are globally acknowledged, but CFA is miles ahead of ACCA regarding its quality and value as a professional credential. CFA Charter is much more difficult to attain as compared to ACCA Qualification, but it can be worth it.
However, CFA is more suited for experienced finance professionals looking to specialize in a certain area. In contrast, ACCA is best for entry-or mid-level professionals looking to widen their career horizons while acquiring useful accounting and auditing skills.
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