ACCA vs. CFA: Which Qualification Should You Choose?

Choosing the best qualification for a career in finance can be tough. The most popular programs are ACCA and CFA. They promise diverse benefits and roadmaps. Well, for some people, the answer depends on their career goals. For example, a person aspiring to become an expert in accounting and auditing should choose the better option, ACCA. A CFA is best if you’re more inclined toward investment banking, portfolio management, or even scrutinizing finances. It is well known worldwide, making ACCA the most flexible qualification for people who want to have an international career. It is for those who dream of being accountants, auditors, or even in financial management. This is a designation that is highly respected within the investment industry. It primarily focuses on careers like asset management, investment banking, economic analysis, and portfolio management.

What is ACCA?

The Association of Chartered Certified Accountants (ACCA) is a worldwide professional accounting body. The body provides the Chartered Certified Accountant qualification and specializes in accounting, auditing, taxation, and financial management. Founded in 1904, it has over 200,000 members and 500,000 students from over 180 countries.

The ACCA curriculum involves ten categories. The areas include financial reporting, management accounting, business law, and taxation. It covers major industries and prepares students for the accounting profession, improving opportunities within auditing, consulting, and financial management.

The ACCA course consists of 13 exams at three levels: Applied Knowledge, Applied Skills, and Strategic Professional. In addition to that, you must complete one professional ethics module and gain three years of practical experience.

What is CFA?

The Chartered Financial Analyst (CFA) is considered the most prestigious qualification for finance and investment specialists across the globe. The CFA Institute awards this qualification, which is mainly concerned with investment management, financial analysis, and ethics. Established in 1963, the CFA has more than 170,000 charterholders worldwide today.

CFA core consists of three program levels. They include portfolio management, equity research, fixed income, derivatives, and financial reporting. Ethics and professional standards form a large part of the program, too.

The CFA charter requires a candidate to pass all three levels of examinations and to have four years of experience in an appropriate field. Reports unify that CFA exams are some of the toughest of their kind, requiring strong analytical and quantitative abilities.

ACCA vs. CFA: Which Qualification Should You Go For?

Choosing between ACCA and CFA solely depends on one’s career goal and interests. If you want to best associate yourself with accounting, auditing, and financial management, then ACCA is the right choice. With it, one could gain a wealth of knowledge in the practices and standards of accounting. Career paths could lead to working in public accounting firms, corporations, and government agencies.

Investments, portfolio management, and financial analysis studies should lead one to the CFA rather than the ACCA. The CFA program supplies in-depth research on financial markets, investment strategies, and risk management. CFA charterholders can be merged with asset management firms, investment banks, and hedge funds.

Both qualifications are recognised and respected globally. However, the ACCA program is more flexible in terms of job roles and industries. CFA, on the other hand, is highly specialized and recognized mainly in investment sectors.

The choice of either qualification depends on one’s career aspirations and interests. To know what can tip the scales in favour of your choice of ACCA or CFA, eligibility and entry requirements matter.  A strong foundation in finance and quantitative skills is required for the CFA program. This is most suitable for candidates with a finance, economics, or business background.

Which Is Harder ACCA, or CFA?

ACCA and CFA are undoubtedly considered hard. However, their difficulty levels differ based on the syllabus and exam pattern.

CFA Salary vs ACCA Salary: Who Does Better?

Salary potential is one of the deciding factors when an individual has to choose between ACCA and CFA. Both qualifications provide excellent avenues for employment, but the salaries for both types differ according to the roles and industries.

Salary levels can vary significantly for ACCA professionals, including accountants, auditors, and financial managers, according to experience level, geographical location, and industry type.  An ACCA can work with multinational corporations, public accounting firms, and government agencies in various roles, such as financial manager, auditor, and consultant.

CFA charterholders earn decent salaries, given that their jobs are usually in investment banking, asset management, and financial analysis. Portfolio managers, investment analysts, and financial advisors work under CFA. They are subjected to bonuses and performance-related compensation, resulting in better remuneration.

How To Choose Between ACCA And CFA For Your Career?

While choosing between ACCA and CFA, one needs to consider his/her career goals, interests, and strong/good points. 

Career Goals

ACCA is the perfect path for those wanting to pursue a career in accounting, auditing, and financial management. It has a wider knowledge scope and flexibility across industries.

CFA would be the right option if one wants to make a career in investment banking, portfolio management, or financial analysis. It’s a specialized qualification and is quite valued in the investment space.

Interests and Strengths

Make your decision by weighing the qualifications against your interests and strengths. For example, you would benefit from ACCA if you enjoy working with financial statements, auditing, and taxation. If you enjoy analyzing financial markets and managing investments to make decisions based on data, you would follow the CFA path. 

Time and Effort 

Both qualifications require time and effort, as they aren’t easy. ACCA takes around 3-4 years to complete, while CFA takes more than four years because of its rigorous examination. Therefore, weigh your commitment to the path. 

International Recognition 

Both ACCA and CFA are globally recognized. However, ACCA has more leeway in terms of roles and industries. CFA is highly specialized and recognized in the investment sector. 

Thus, get the qualification that fits your career goal and interest. Both ACCA and CFA have opened doors and are globally recognized.