CFA vs CPA? Breaking down which designation is a better career fit

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Many aspiring finance professionals need to decide between embarking on a career as a CFA vs a CPA. While the process of becoming a CPA is more arduous than that of getting a CFA, it’s important to take a hard look at each path to best determine what’s right for you.

Let’s take a closer look at each and how to best familiarize yourself with the role of each.

How to become a CFA

Chartered financial analysts (CFAs) are certified for their ability to help with trading, asset management, and investment management. Those in these roles tend to be in high demand in larger organizations, as they offer invaluable help for companies navigating the complexities and unknowns of finances.

As such, CFAs tend to have higher earning potential than CPAs and greater career paths, though the downside is that to sit for the CFA exam, anywhere from 4,000 to 6,000 hours of work experience is required. In addition, the knowledge required to succeed as a CFA is much more rigorous, and preparation courses tend to be more costly.

When you’ve found the right resource for your CFA prep, you can dive deep into critical topics like why ethical standards are so important in modern investing. Specifically, you could study a structure like the CFA Institute of Professional Conduct Program, learn about the roots of the GIPS standards, and more.

How to become a CPA

A CPA (certified public accountant) must be licensed by a government, and they are qualified to help with tax preparation, consulting and auditing, making this particular role especially valuable for most businesses, freelancers, contractors and other entities.

Those considering a career as a CPA may want to consider the following: CPAs tend to have greater opportunities for career advancement, and the CPA exam typically has higher pass rates. Additionally, the workload of a CPA is considerably more structured than a CFA’s.

Aspiring CPAs need to master various areas, including processing financial statements, adjusting entries, calculating depreciation and fixed assets, and analyzing payroll systems. Beyond taxes, CPAs can assist those in need of financial accounting when closing on a property, setting up systems for merchandise transactions, and a lot more.

CPA versus CFA

For those who find themselves straddling the line of pursuing a career as a CFA versus a CPA, the best first step is to fully immerse yourself in the world of finance and seriously consider the direction they’d like their careers to progress in.

Despite seemingly having different focuses, any CFA would benefit from at least knowing the best accounting practices for beginners. On the flip side, CPAs who have a root understanding of CFA focuses like trading and assets will be better prepared to help their clients come tax season.

Ultimately, either role requires immense dedication to exam preparation and experience. Whether you’re seeking to become a licensed CFA or CPA, this Financial Accounting and CPA Certification Training Bundle may prove to be beneficial, now $41.99.

What: Limited-time sale
Price: $41.99
Where to buy: The 2024 Ultimate Financial Accounting & CPA Certification Training Bundle

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