CPA vs. CFA Designation

Becoming either a CFA® (Chartered Financial Analyst) charterholder or a CPA (Certified Public Accountant) is a big step in your career. Both designations are impressive additions to your resume and great career boosters. If you’re considering acquiring one of these certifications, it’s important to understand the differences between the two. Although both are related to finance, they can take your career in very different directions.

CPA vs. CFA Key Takeaways

• CFA's focus on investment analysis and portfolio management.

• CPA's focus on accounting, auditing, and taxes.

• CFA's use investment tools to perform asset valuations, and portfolio management.

• CPA's use auditing procedures to determine tax rates, and set accounting standards.

Table of Contents

• Pros and Cons of Becoming a CPA or CFA

• CPA vs. CFA Exam Differences

• CPA vs. CFA Career Paths

• CFA Charterholder vs. CPA Salary

• CFA vs. CPA Difficulty

CFA Charterholder vs. CPA: What Is the Difference?

CFA charterholders and CPAs both work with financial records, consult with clients, and assess the viability of different businesses and organizations. However, the outcome of these tasks is different depending on which credential you hold. CFA charterholders focus on understanding market conditions, assessing businesses, and determining the best way for businesses or individual clients to invest their money. They use investments to generate income for clients. Some charterholders buy or sell securities, funds, and more on behalf of their clients. CFA charterholders are likely to be investment analysts, financial advisors, and portfolio managers. Some even go on to become chief financial officers (CFOs).

By contrast, CPAs produce financial records. They may calculate taxes owed or assess business practices to identify ways to save money. They must also ensure that applicable financial regulations are followed. Some CPAs use their accounting skills to identify evidence of fraud or other crimes.

Considering the CFA charter? Before you choose your CFA exam date, download this free Before You Decide to Sit for the CFA Exam eBook.

Is Becoming a CPA Worth It?

If becoming a CPA appeals to you, you’ll need to weigh the pros and cons of preparing for and taking the CPA exam.

Pros of Becoming a CPA

• Potential salary increases will offset the cost of preparing for and taking the exam itself. 

• Preparing for the exam will teach you skills and knowledge that will help you become a better accountant.

• Becoming a CPA signals that you’re dedicated to your profession, which can give you more opportunities and flexibility in your career.

Cons of Becoming a CPA

• It’s expensive. The cost of the CPA exam itself varies by state, but expect to spend around $1,000 for registration and testing fees, plus several thousand dollars for a review course (which we highly recommend). Some firms reimburse their employees for CPA exam-related costs, so check with your employer to see if you qualify. 

• It takes lots of time. It’s recommended that you spend 300–400 hours preparing for the CPA exam, in addition to the time it takes to actually take the test (~16 hours total).

Keep in mind that while the monetary and time expenses you’ll inevitably need to invest to become a CPA may seem daunting, becoming a CPA will allow you more job opportunities and financial stability.

Is Becoming a CFA Worth It?

Pursuing the CFA Charter is a significant investment in time and money so in order to figure out if the CFA Charter is worth it for you, there are few factors to consider.

Pros of Becoming a CFA

• The CFA charter is a very highly respected designation in the investment management field. 

• Completing the CFA Program grants you CFA Institute membership, a global network of over 135,000 investment professionals, offering great networking. The charter prepares you for various investment jobs, including portfolio manager, risk manager, and research analyst.

• In a recent Kaplan Schweser CFA Survey, one-third of our respondents claimed to have received a salary increase after passing their latest CFA exam or becoming a charterholder.^#

Cons of Becoming a CFA

• Becoming a CFA Charterholder is a significant commitment. There are three exams to pass plus a work experience requirement to become a CFA Charterholder. Becoming a CFA  can take candidates years to complete.

• The CFA curriculum may not be relevant to your career goals.

• Earning the CFA designation does not guarantee a job promotion or a new career. 

CPA vs. CFA Curriculum Differences

Unlike the CFA exam, which focuses on investment tools, valuing assets, and portfolio management and wealth planning, the CPA exam is designed to test your knowledge of auditing procedures and standards, taxation, and accounting and reporting standards for a variety of organizations.

CPA Exam Topics

To earn the CPA designation, all candidates are required to pass the CPA Exam. This exam is structured into three four-hour Core sections and one four-hour Discipline section, which the candidate chooses. The required Core sections are:

• Auditing and Attestation (AUD): Focuses on ethics, professional responsibilities, assessing risk, performing procedures, gathering evidence, and reporting on audits and attestation engagements.

• Financial Accounting and Reporting (FAR): Covers financial reporting, including select balance sheet accounts and transactions for for-profit (public and nonpublic), not-for-profit entities, and foundational concepts for state and local governments.

• Taxation and Regulation (REG): Covers U.S. ethics and professional responsibilities related to tax practice, U.S. business law, and federal tax compliance for property transactions, individuals, and entities.

CPA candidates need to select one of the following four-hour Discipline sections:

• Business Analysis and Reporting (BAR): Focuses on financial statement analysis, select technical accounting and reporting topics (including complex areas like business combinations and derivatives), and state and local government accounting.

• Information Systems and Control (ISC): Focuses on information systems, data management, security, confidentiality, privacy, and considerations for System and Organization Controls (SOC) engagements.

• Tax Compliance and Planning (TCP): Focuses on U.S. federal tax compliance for nonroutine and higher complexity transactions, tax planning for individuals and entities, and personal financial planning.

CFA Exam Topics

The CFA Program curriculum will test candidates' knowledge in 10 topic areas throughout three exam levels:

• Quantitative Methods

• Economics

• Financial Statement Analysis

• Corporate Issuers

• Equity Investments

• Fixed Income

• Derivatives

• Alternative Investments

• Portfolio Management

• Ethical and Professional Standards

CPA vs. CFA Career Paths

The major difference between a CPA and CFA career path is the industry they work in. Typically CFA charterholders work in the investment management industry whereas you may find CPAs in multiple industries.

CPA Career Paths

There are many directions you can take in your career after becoming a CPA. Deciding the industry you want to work in is the first decision you’ll need to make. Your options include: 

• Public accounting: Public accounting firms provide a variety of clients with accounting services, such as financial planning, bookkeeping, and audit preparation. It’s common to work in public accounting for a few years before transitioning to private accounting or another more specialized type of accounting.

• Government accounting: Government accountants perform audits, assess the efficiency and effectiveness of various government units, oversee public funds, and investigate white-collar crime for the FBI.

• Private accounting: Private accountants work for a single company’s internal accounting department. They manage the company’s financial records, prepare financial reports, and assess the company’s fiscal performance.

• Nonprofit accounting: Nonprofit organizations require accountants who can complete specialized tasks. These include evaluating donor-restricted assets, which can only be used for specific purposes, accounting for different types of services and programs, and fundraising.

• Academia: Accounting professors not only teach students about accounting and research accounting theory, but they often also serve as accounting consultants to companies, firms, and in legal proceedings.

CFA Career Paths

There are multiple directions CFA charterholders can take after earning the CFA designation, including using it to advance their current career or look for a new career as a:

• Financial Analyst

• Risk Analyst

• Ratings Analyst

• Portfolio Manager

• C-Level Executive

CFA Charterholder vs. CPA Salary

Salaries can vary widely for both CFAs and CPAs based on location, experience level, and company size. That being said, according to the CFA Institute, the average salary for a CFA is $180,000 and the average salary for a CPA is $70,000.

CFA Charterholder Salary Ranges

Since there are so many different types of jobs CFA Charterholders can have, and the amount of experience each CFA has after earning the designation varies greatly so the salary range for CFA Charterholders is very large. According to a recent Pittsburgh CFA Society Compensation Study, the base salary range for a CFA is $128,000 to $196,000. But that doesn’t account for cash bonuses, incentives, or profit sharing benefits. 

CPA Salary Ranges

Since CPA is not a job title, it's a professional designation, it’s hard to determine the salary range for CPAs. However, according to U.S Bureau of Labor Statistics, the median annual wage for accountants and auditors was $81,680 in May 2024, which is a common job title for CPAs. Other factors that determine salary ranges for CPAs include:

• Company size

• Employment Type

• Experience

• Location

According to U.S Bureau of Labor Statistics, the lowest 10 percent of auditors and accountants earned less than $52,780, and the highest 10 percent earned more than $141,420. Here are the median salaries for some of the most common positions for CPAs:

• Accountant and Auditor: Accountants and auditors who are CPAs earn a median annual salary of $81,680.

• Financial Manager: Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization or clients. The median salary for this position is $161,700.

• Top Executives: The median salary for this position, which includes Chief Financial Officers, is $105,350.

CFA vs. CPA Difficulty - Which Is Harder?

Acquiring either the CFA charter or CPA certification is a long process that requires a degree, several years of experience (in most states), and a passing score on a long, difficult exam. The difficulty of CFA vs. CPA is dependent on your experience. This table breaks down the requirements to become a CFA and CPA.

Pass rates for the CFA and CPA exams are updated with each testing administration. Learn more about CFA exam pass rates and CPA exam pass rates.  

So, which is harder, CFA or CPA? It depends on your individual circumstances and strengths. Make your decision based on which will help your career progress the most, not on which you believe will be easier to obtain. In the long run, the hard work will pay off no matter which certification you choose.

CFA vs. CPA Infographic