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People who like to work with money often choose to become a Chartered Accountant or Chartered Financial Analyst (CFA). It is a career that is both very good and different. Many mistakenly believe that both titles are used interchangeably. Although there are some similarities, there is a fairly big difference between CPA and CFA. Here is an overview of these two professionals.
What is a CPA?
An accountant is an accountant trained in the provision of various accounting services, including the preparation of taxes for individuals and the preparation of financial statements for large corporations. CPA’s can choose from a variety of career options, including tax consulting, auditing, accounting positions for accounting firms or large corporations, public accounting or private practice.
What is a CFA?
A chartered financial analyst is a financial analyst who analyzes different financial options and provides investment options to financial planners and senior executives of investment firms. CFAs can work in a variety of capacities, including portfolio managers, general managers, research analysts, consultants, risk managers, corporate financial analysts and financial advisors.
Main differences between CPA and CFA
Although there are many differences between a CPA and a CFA, the main difference is their primary focus. If a person needs help with tax preparation, they would incur a CPA. If a person wants to invest a large sum, she will hire a CFA. An individual who wants to work in accounting or tax companies would choose to work as a chartered accountant, while someone who wants to work in an investment bank or in a company would choose to work as a financial analyst authorized.
Requirements for CPA and CFA
Another difference between a CPA and a CFA lies in the requirements to become one or the other. A CPA must meet certain state requirements for education and experience. A CFA must complete his training through the CFA Institute. CFAs must generally be members of the CFA InstituteThe CFA must have at least a bachelor’s degree, but this may not be necessary if the individual has at least four years of professional experience in this field. If the future CFA chooses to take a formal training program, it is usually a second cycle CFA program. He must also pass the following six-hour exams.
Level I Exam – tests the candidate on the tools used for investment evaluation and portfolio management, as well as his knowledge of the CFA Institute’s asset classes, securities, markets and code of ethics .
Level II Review – This test focuses on asset valuation.
Level III Exam – This test focuses on portfolio management.
The CPA must hold at least a bachelor’s degree and complete an additional 30 hours to obtain 150 hours of credit. The CPA must also have one year of accounting experience and pass the four-part uniform exam. CPA must be approved in all states.
Each state has its own requirements. It is therefore advisable for the persons concerned to apply to the accounting council of their State. To retain a CPA license, the person may also be required to complete continuing professional education depending on the state of the CPA.
Related Resource: The 25 Most Affordable Online Licenses in Accounting in 2018
The US Bureau of Labor Statistics indicates that accountants should experience employment growth of 10% over the next 10 years. Certified public accountants and financial analysts have more training and can expect better career prospects. Regardless of the career chosen, the CPA and the CFA both receive very good salaries.You can find the difference between CA and ACCA
For more:www.pac.edu.pk
