CFA Vs CPA: All You Need To Know

CFA vs CPA: Wondering whether to pursue a CFA or CPA? Deciding between these two prestigious credentials can be challenging. Both offer distinct career paths in finance, but the roles and focus areas differ.

A CPA specializes in accounting, ensuring financial transparency and compliance, while a CFA focuses on investment analysis, risk management, and financial strategy.

In this guide, we’ll explore the CFA vs CPA differences, discuss the CFA vs CPA exam requirements, and examine the CFA vs CPA salary expectations. Understanding these distinctions can help you decide which certification—CPA or CFA—aligns better with your career goals.

Understanding Chartered Financial Analyst (CFA)

The CFA (Chartered Financial Analyst) designation is a prestigious certification offered by the CFA Institute, focused on investment management and analysis. It is achieved by passing three levels of exams, each progressively more advanced. CFAs specialize in analyzing financial markets, managing investment portfolios, and making data-driven decisions to help clients achieve their financial goals, such as retirement planning.

For example, a CFA might advise a client on the best stocks to invest in based on risk tolerance. This globally recognized certification enhances career opportunities in finance and investment-related fields.

Understanding Certified Public Accountant (CPA)

A CPA (Certified Public Accountant) is a licensed professional specializing in accounting, taxation, and auditing. They prepare financial statements, handle tax filings, and provide advice on financial strategies.

For example, a CPA might help a business choose between a corporation or LLC to maximize tax benefits. To become a CPA, candidates must pass the Uniform CPA Exam, meet educational requirements, and gain relevant work experience.

The CPA designation is globally recognized and enhances job opportunities, often leading to higher salaries and career advancement, as CPAs ensure businesses comply with financial regulations and maintain transparency.

Also Read: Accounting Standards

CFA vs CPA Exam: Requirements and Structure

Both the CFA and CPA exams are challenging, and choosing between them depends on your career focus. The CFA focuses on investment management, while the CPA centres on accounting, taxation, and auditing. Below is an overview of the requirements and structure of each exam to help you understand what’s involved.

How to Become a CFA?

To become a Chartered Financial Analyst (CFA), candidates need to meet the following requirements:

Bachelor’s Degree: Must hold a bachelor’s degree or be within 23 months of graduating.
Work Experience: Complete 4,000 hours of relevant work experience over three years.
CFA Exams: Pass three levels of CFA exams (Level 1, Level 2, and Level 3).
References: Submit 2–3 professional references.
CFA Institute Membership: Apply for membership after meeting all exam requirements.

CFA Exam Structure

The CFA exam is divided into three levels, each with increasing complexity:

Level 1: 180 multiple-choice questions in two sessions.
Level 2: 88 multiple-choice questions based on vignettes.
Level 3: Mix of essay questions and multiple-choice. From 2025, candidates can specialize in Private Wealth, Private Markets, or Portfolio Management.

Also Read: Forensic Accounting

How to Become a CPA?

To earn the Certified Public Accountant (CPA) certification, candidates need to:

Education Requirements: Complete 150 college credits and obtain a bachelor’s degree.
CPA Exam: Pass the four-part CPA Exam.
Work Experience: Gain one year of full-time work experience in accounting.
Licensure: Apply for state licensure after passing the exam.
Ethics Requirement: Complete any state-specific ethics requirements.

CPA Exam Structure

The CPA Exam consists of three core sections and one specialized discipline:

Auditing and Attestation (AUD)
Financial Accounting and Reporting (FAR)
Taxation and Regulation (REG)
Discipline Options (Choose One):
- Information Systems and Controls (ISC)
- Business Analysis and Reporting (BAR)
- Tax Compliance and Planning (TCP)
- Each section includes multiple-choice questions and task-based simulations, lasting four hours each.

Moreover, each section is four hours long and includes multiple-choice questions and task-based simulations.

Also Read: Chartered Accountants (CAs) – Job Description, Salary, and Scope

CFA vs CPA Exam Difficulty

While both exams are rigorous, the difficulty level differs:

The CFA exam requires around 300 hours of study per level, while the CPA exam requires 80–120 hours per section.
The CFA exam has a lower pass rate, indicating higher difficulty. It covers a broad range of financial topics, while the CPA focuses on accounting and tax regulations.
CFA exams must be taken in order (Level 1 → Level 2 → Level 3), whereas the CPA exam sections can be taken in any order.
The CFA is internationally recognized for finance roles, while the CPA is more focused on the accounting profession in specific regions.
The CFA exam is more finance-oriented, while the CPA exam focuses on accounting principles, taxation, and auditing standards.

Choosing between a CFA or CPA depends on career goals—finance professionals may prefer the CFA, while accountants benefit more from the CPA.

Difference Between CFA and CPA

The difference between CFA and CPA lies in their focus areas. A Certified Financial Analyst (CFA) specializes in investment management, risk assessment, and portfolio strategy, while a Certified Public Accountant (CPA) focuses on accounting, taxation, auditing, and regulatory compliance.

Both are respected credentials in the financial industry but cater to different career paths. Here, check the complete details on the difference between CFA and CPA:

CFA vs CPA: Key Differences
Criteria	CFA (Chartered Financial Analyst)	CPA (Certified Public Accountant)
Primary Focus	Investment analysis, portfolio management, and wealth planning	Accounting, taxation, auditing, and financial reporting
Career Paths	Investment banker, portfolio manager, financial analyst	Accountant, auditor, tax consultant, CFO
Exam Structure	Three levels, each requiring extensive study	Four sections, covering accounting, tax, and auditing
Exam Format	Multiple-choice and vignette-based questions	Multiple-choice and task-based simulations
Time to Complete	Takes about 3–4 years on average	Can be completed in 12–18 months
Pass Rate	Around 22%–56% across levels	Approximately 50%–60% per section
Work Experience Requirement	4,000 hours (approx. 4 years) in finance-related roles	One year in accounting-related work
Regulating Body	CFA Institute	State Boards of Accountancy (U.S.)
Cost	Higher cost due to multiple levels of exams	Relatively lower exam fees
Example Careers	A portfolio manager advising high-net-worth clients	A tax accountant ensures compliance with regulations

Also Check: CA vs MBA – Is CA better than MBA in Finance?

The CFA vs CPA exam structure, career paths, and skill requirements vary significantly. Choosing CFA or CPA depends on your professional goals—CFA is ideal for investment and finance roles, while CPA is essential for accounting and compliance-related careers.

CFA vs CPA: Career Opportunities and Salary Insights

When comparing CFA vs CPA, it’s important to understand the roles and salary potential each certification offers. Both certifications open doors to lucrative careers, but their focus areas and salary ranges differ.

CPA Career Opportunities and Salary

Certified Public Accountants (CPAs) work in various industries, including auditing, taxation, and financial reporting. Here are the key roles and average salaries for CPAs in India:

Tax Specialist: ₹8.8 LPA
Staff Internal Auditor: ₹5.1 LPA
Financial Advisor: ₹4.6 LPA
Tax Accountant: ₹5.5 LPA

CPAs are highly in demand for roles like auditing, tax planning, and corporate finance, especially in the US and other countries with US-based organizations. In India, the average salary for a CPA is ₹7 LPA, with the potential to rise to ₹15 LPA or more with experience.

CFA Career Opportunities and Salary

Chartered Financial Analysts (CFAs) primarily work in investment-related roles, such as portfolio management and financial analysis. Below are the top roles and average salaries for CFAs in India:

Portfolio Manager: ₹12.6 LPA
Investment Analyst: ₹11.2 LPA
Risk Manager: ₹12.2 LPA
Equity Analyst: ₹10.5 LPA

CFA professionals are in demand globally, particularly in sectors like investment banking, asset management, and portfolio management. In India, the average salary for a CFA is ₹8 LPA, with experienced professionals earning ₹15 LPA to ₹20 LPA.

CFA vs CPA Salary Comparison

The salary difference between a CFA and a CPA depends on various factors like location and experience. Here’s a quick overview of their average salaries:

CFA vs CPA Salary Insights
Designation	Average Salary (India)	Average Salary (US)
CPA	₹7 LPA	$94,000
CFA	₹8 LPA	$102,000

Note: The salary figures provided are based on various online sources and may vary depending on factors such as individual performance, experience, location, and the policies of specific organizations.

Also Check: Top 5 High-Paying Entry Level Jobs for 2025 (Earn Up to $100,000+)

CFA vs CPA: Which Is the Right Choice for You?

The decision between CFA vs CPA depends on your career goals. If you’re interested in accounting, tax, and financial reporting, a CPA certification will offer excellent opportunities. On the other hand, if you’re more focused on investment analysis, portfolio management, or financial advising, the CFA is a better fit. Both certifications offer strong career growth, with the difference between CFA and CPA mainly lying in the industries they cater to.

Ultimately, whether you choose CPA or CFA depends on whether you want to pursue a career in corporate finance and accounting or in investment management and analysis.

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CFA vs CPA FAQs

Which certification offers higher earning potential, CFA or CPA?

In India, the average salary for a CPA is INR 7 LPA, while a CFA earns around INR 8 LPA on average. However, with experience, CFAs can earn between INR 15 LPA to INR 20 LPA, showing higher earning potential over time.

Which is more challenging, CFA or CPA?

The CFA exam focuses on investment and financial analysis, while the CPA exam deals with accounting and taxation. Both are difficult, but the CFA requires extensive knowledge of financial markets, while the CPA involves mastering accounting principles and tax laws.

What’s the main difference between CFA and CPA?

The key difference between CFA and CPA lies in their focus areas. CFA is centred on investment analysis, portfolio management, and financial advising, while CPA is focused on accounting, auditing, and tax-related fields.

How does the CFA vs CPA exam differ?

CFA exams primarily test financial analysis, investment knowledge, and portfolio management, while CPA exams assess proficiency in accounting, tax regulations, and auditing standards. The structure and difficulty of the exams vary based on the certification’s focus.

Which career path is better, CFA or CPA?

Your career path depends on your interests. A CPA offers opportunities in accounting, tax, and auditing, whereas a CFA opens doors to investment management, financial analysis, and portfolio management. Both are strong choices depending on your goals.