Accounts, ledgers, taxes, and auditing are all topics covered by CA, or Chartered Accountant. Every company, regardless of size, requires a CA to manage taxes.
The Certified Financial Analyst, or CFA, is more concerned with investments, portfolios, corporate finance, stock investment, and other financial products. This could be your calling if you’re looking forward to pursuing unusual occupations after the 12th.
Budgeting, accounting & auditing, and managerial accounting are among the job opportunities available to CAs. However the employment paths for CFAs are far more varied and include research, portfolio management, and investment banking.
You may now find it challenging to decide which career to pursue. Of course; it’s the foundation of your entire career. Also, you should be aware that neither of these two jobs is an easy one. The two careers are well explained below.
Certified Financial Analysts (CFA)
There is a high demand for CFAs, or Chartered Financial Analysts, in the financial industry. The most reputable financial institutions in the world, such as JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, are among the top employers. Investment and wealth management make up the majority of the CFA profile.
Three tests make up the CFA program, which takes four years to complete. It is a wholly practical program that includes internships and work experience. While hiring financial analysts, expertise and aptitude are the essential considerations. Only people who have passed all three tests are eligible to use the designation “CFA.”
There are not many requirements for CFA designation. It takes six months to prepare for each exam, 300+ hours of study time, and four years of work experience. Only questions based on concepts are asked in the exam because CFA focuses on providing conceptual comprehension. Do you want to work with the industry’s biggest players and do you have an interest in finance? Your key to success may be CFA.
Chartered Accountant (CA)
While half of commerce graduates take the CA foundation (CPT), or entrance exam for chartered accountants, the CA program is one of the most popular in India. The chartered accounting program in India is governed by the ICAI (Institute of Chartered Accountants of India). In the list of the top 10 sought-after professions in India is CA as well.
The primary responsibilities of a CA are accounting, auditing, budgeting, and taxes. Due to the fact that practically all organizations use CA, its demand is constantly quite high. The only individuals in India with the authority to audit an organization’s financial statements are CAs. Every year, a financial statement needs to be audited.
Government agencies, as well as businesses in the public and commercial sectors, may offer career possibilities to CA. CAs are in high demand. To become a CA in India, candidates must pass challenging levels of test and a rigorous training program.
Both CA and CFA are rigorous professionals who operate in the financial industry. Whereas a CFA can only be hired by major financial organizations, a CA can find employment anywhere. Let’s look at a proper CA vs. CFA comparison now.
Difference between CA and CFA
Let’s discuss some difference between CA and CFA and also see which is better from your perspective –
| Base | CA | CFA |
| Focus | In addition to finance, CA is regarded as an expert in accounting, taxation, law, and audit. | The fundamental competency of CFA is finance. |
| Duration of the course | After three years of practical training and three levels of CA, it takes at least 4.5 years to complete following the 12th grade. | Together with four years of practical training experience, the CFA course is divided into three levels and must be completed at least four years after graduation. |
| Area | CA is a course offered by the ICAI that is recognized in India. | The CFA Institute runs the widely regarded CFA program. |
| Pass Percentage | CA is regarded as the world’s most difficult course, with an average passing rate of 0.5%. Also, it has been said that just 5 out of 1000 applicants will be able to take the CA Final exam. | Compared to CA, the CFA has a higher passing rate. The average pass rate appears to be 10%, which suggests that out of 1000 students that enroll in the course, 100 are able to pass this exam. |
| Demand | The need for CAs is undoubtedly greater because they can only audit the company’s financial statements. They are therefore in great demand. | Numerous domestic and international businesses are looking for CFA candidates to manage their investments and be an expert in finance. |
| Paper Pattern | CA is a paper-based, arbitrary pattern. Thus, disregard the role of luck. | The CFA test has a paper format based on multiple-choice questions, therefore passing it requires some luck. |
| Exam Pattern | The papers are spaced over 16 days with a 1-day preparation leave in each paper, which is advantageous for the CA students. | CFA is extremely challenging to study for during exam season since there, students must study for all 10 courses in one day. |
| Salary in India | The typical salary for a CA who is just starting out is between 6-7 lakhs, and it can go up depending on your work. | The typical CFA compensation for new hires is expected to be up to 4 Lakhs, and it rises with skill and experience. |
Why Do You Want to Be a CFA?
We hope that by outlining the aforementioned distinctions, you can decide which career path is best for you. The following are some additional factors to take into account if you want to pursue a career in CFA.
- Practical experience
- Career affirmation
- Moral foundation
- Worldwide community
- Demand from employers
If you are interested in investments, CFA’s portfolio itself is sizable enough.
More than 245,000 candidates from around the world sign up for the CFA tests in June 2020, which will be held in 193 cities across 95 different countries. A poll indicates that the demand for CFA will soon increase and that salary may increase by 10-12% as well.
Why Do You Want to Be a CA?
Compared to CFA, CA is much more flexible. There is a large market for it, and CAs can also work independently to develop their own clientele.
As you are aware, a CA’s remuneration is based on their level of skill. For instance, a student who aced all of their examinations at once can easily earn a fortune, in contrast to those who had to retake them and lack high-paying employment. Only finishing the 12th grade is required for eligibility as a CA.
They can run their own businesses and manage several clients at once. CA has requirements for both the financial and manufacturing sectors. Thus, if you want career freedom, adopt an entrepreneurial mindset. Your ticket to success may be CA.
CA and CFA Together
These days, CA and CFA can occur simultaneously. Your professional career might soar to new heights if you complete both the CA and CFA exams. Also, it will increase the worth and skill of your knowledge by double. You will have numerous business prospects if you hold the designations of CA and CFA.
Conclusion
Despite the intense competition in each of these fields, you can succeed financially in either one. Also, if you’re still not sure which is superior between CA and CFA, you can choose the two together. Your career will receive a huge boost, and you will be in a better position than your coworkers.
