Becoming a CFA or CPA can be a powerful step forward in your career. However, the choice will depend on various factors, including your own self-interest, your career objectives, your skillset, and your end goals.
In this article, we will be going through various questions often asked by students regarding both finance certifications. Concerns like "CFA vs. CPA salary in India," "Which of them is easier?" "Which of them gives the better return?", etc. will all be satisfied.
What is CPA?
CPA stands for Certified Public Accountant. It is a professional designation granted by the American Institute of Certified Public Accountants (AICPA) to individuals who meet specific education, experience, and examination requirements. The CPA designation is widely recognized and respected in the field of accounting and finance, both in the United States and internationally.
What is CFA?
CFA stands for Chartered Financial Analyst. It is a professional designation granted by the CFA Institute to finance and investment professionals who successfully complete the CFA Program, a globally recognized and rigorous set of examinations. The CFA designation is highly esteemed in the finance industry and is known for its focus on investment management, financial analysis, and ethical standards.
CFA vs. CPA salary in India
The pay scale that a company offers you entirely depends on the role offered. The certification that you carry, whether it is a CPA or CFA, will only leverage your opportunities and chances to get those job profiles. However, if a median estimate is taken, then an average CPA in India would earn approximately 6.9 lakh per annum, while an average CFA professional salary in India earns approximately 6.8 lakh per annum. However, the real salaries would depend on the job profile.
CFA Salary in India for Some Popular Job Profiles
- Investment Banker: A lot of CFAs go on to become investment bankers. The average salary of an investment banker in India is 9.2 lakhs per annum.
- Portfolio Manager: One of the core professions of investment professionals, the average salary in this role is 10.2 lakhs per annum.
- Financial Advisor: A role that supports the financial framework of a company, the average salary in this role is 3.6 lakhs per annum.
- Research Analyst: One of the most actively pursued roles, the average salary in this role is 3.8 lakhs per annum.
- Chief Financial Officers: A prominent role in a company, CFOs can earn an average salary of 34.7 lakhs per annum.
CPA Salary in India for Some Popular Job Profiles:
- Accountant: One of the most popular finance professions in the world, the average salary is 2.4 lakhs per annum; however, with the CPA certification, the paycheck substantially increases.
- Auditor: From company auditors to personal advisors, auditors can get an average salary of 4.9 lakhs per annum.
- Financial controller: A role similar to a CFO, they control a company's finances completely. The average salary in India goes to 19 lakhs per annum.
- Corporate Controller: CPAs in this role can easily bag an average salary of 11.9 lakhs per annum
- Chief Financial Officers: Often requiring many years of experience, the average salary in the role is 34.7 lakhs per annum
There are many other job profiles one could pursue after CPA or CFA with similar or better-paying opportunities. Some people often also go with CPA+CFA to further boost their careers.
Which is better, CFA or CPA?
As already described, both CFA and CPA are very different professional certifications in the finance domain. One focuses on investment analysis, while the other works on financial record-keeping. The career opportunities are also extremely promising after one has achieved either of these certifications. Let's take a look at which certification is easier to attain out of both of them.
| CPA VS CFA | ||
| Criteria | CPA | CFA |
| Focus | Core Expertise in Accounting, Taxation, and Financial Reporting | Specializes in Investment Management, Financial Analysis, and Portfolio Management |
| Industry Relevance | Widespread Applicability across Various Industries (e.g., Accounting Firms, Corporate Finance, Government) | Highly Valued in Investment Management, Asset Management, Private Equity, and Hedge Funds |
| Career Paths | Audit and Assurance, Tax Advisory, and Corporate Finance | Portfolio Management, Equity Research, and Risk Management |
| Job Roles | Auditor, Tax Advisor, and Financial Analyst | Portfolio Manager, Research Analyst, and Risk Analyst |
| Industry Preferences | Applicable Across Various Industries | More Focused on Finance and Investment Industry |
| Specialization | Accounting Principles, Financial Reporting, and Taxation | Investment Analysis, Portfolio Management and Financial Markets |
| Exam Structure | Four-Part Exam, Additional Educational Requirements | Three-Level Exam, Bachelor's Degree and Relevant Work Experience |
| Certification Body | American Institute of CPAs (AICPA) | CFA Institute |
| Typical Education Level | Bachelor's Degree | Bachelor's Degree and Relevant Experience |
| Professional Network | Diverse Across Industries | Concentrated in Finance and Investment Community |
Which is easier, CFA or CPA?
Both exams are quite difficult and have an average completion rate of 40%. The CFA exam comprises three levels of exams, each more difficult than the last. Each level of the CFA exam consists of a single exam divided into two sessions on the same day.
Overall, the total exam time of the CFA certification would be around 12–14 hours It is to be noted, though, that on average, people require at least 3–4 years before they can complete all three levels and receive their CFA charter. On the other hand, candidates need to complete all four CPA exam sections in an 18-month time window. Thus, duration-wise, CPA is a shorter-term course than CFA.
