Are you looking for ways to acquire a promising career in the financial industry? Or after deciding, are you still confused between the accounting and financial departments? To be a Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA), one needs a designated position by acquiring the Finance Certifications.
Before getting knowledge about their difference, one needs to explore the below-mentioned blog regarding CFA vs CPA Salary. You will get detailed information about these certification exams, including exam overview, their outlines, respective costs, job opportunities, and their associated salary prospects. So don’t waste your time, let’s start the blog;
Overview of CFA
The Chartered Financial Analyst (CFA) Certification is one of the most demanding certifications that a qualified investment manager needs. For this, a professional registers with a certification that is recommended by the CFA Institution. After clearing all three levels of this exam, a person will pursue a senior-level position in the financial industry.
The professional will get the chance to demonstrate their mastering proficiency and updated knowledge regarding investment management. The associated credential will help analysts to understand a diverse range of topics including economics, ethical investing, financial statement analysis, and investment administration.
Overview of CPA
The Certified Public Accountant (CPA) Certification is also the most requested one in the financial field. The professional can excel in this field after getting the mastering certification in accounting. This specific credential is designed by the American Institute of Certified Public Accountants (AICPA) for granting the knowledge grip on how to construct financial reports, check out taxation, and monitor the auditing process. When a qualified CPA specialist enters into a market, they have to deal with the public and manage their team to effectively operate in a business and organization.
Learn More: CCP Certification
Exam Outline
For CFA Certification
Below is the exam outline of the CFA exam, which a professional needs to follow to present himself as a qualified certifier.
Levels Category | Level I | Level II | Level III |
Exam Structure | Multiple Choice Questions (MCQ’s) | Vignette-supported Multiple Choice Questions (MCQ’s) | Vignette-supported essay & Multiple Choice Questions (MCQ’s) |
No of Sessions | 2 | ||
Total Questions | 180 (90 MCQ’s for each sessions) | 22 items for Vignette-supported including 88 MCQ’s | 11-item sets & 11 essay sets for 12 points each (6 Items sets & 5 Essay sets or 5 items set & 6 Essay sets) |
Time Duration | 4 hours & 30 minutes (Splits equally for 2 hours & 15 minutes for each session ) | 4 hours & 24 minutes(Splits equally for 2 hours & 12 minutes for each session) | 4 hours & 24 minutes(Splits equally for 2 hours & 12 minutes for each session) |
Passing Marks | 41% | 41% | 41% |
Break between sessions | Optional Break in-between any session | ||
Testing Type | Online Proctored Testing (OPT) | ||
For CPA
Below Mentioned are the list of CPA exam list
Core Sections | Auditing & Attestation (AUD) | Financial Accounting & Reporting (FAR) | Regulation (REG) |
Discipline Section | Business Analysis & Reporting (BAR) | Information Systems & Controls (ISC) | Tax Compliance & Planning (TCP) |
Question Type | Multiple-Choice Questions (MCQ’s) and Task-Based Simulations (TBS) | ||
Total No of Questions | 200 MCQ’s, 22 TBS | ||
Total Exam Timings | 18 months | ||
Time Period for Exam | 4 hours | ||
Passing Marks | 75 | ||
One needs to pass all four sections (including all core sections + anyone from the discipline sections) in almost 18 months.
Delve into: FMVA vs CFA
Topic Covered
For CFA
Following is the table of topics that are being covered in CFA credential and each level is a prerequisite of each other
Topics covered for CFA Certification | |||||
Level I | Level II | Level III | |||
Topics | Weightage | Topics | Weightage | Topics | Weightage |
Ethical & Professional Standards | 15-20% | Ethical & Professional Standards | 15-20% | Portfolio Management & Wealth Planning | 30-35% |
Quantitative Methods | 6-9% | Quantitative Methods | 5-10% | Ethical & Professional Standards | 10-15% |
Economics | 6-9% | Economics | 5-10% | Economics | 5-10% |
Financial Statement Analysis | 11-14% | Financial Statement Analysis | 10-15% | Equity Investments | 10-15% |
Corporate Issuers | 6-9% | Corporate Issuers | 6-9% | Fixed Income | 15-20% |
Portfolio Managemen | 8-12% | Equity Investments | 10-15% | Alternative Investments | 5-10% |
Equity Investments | 11-14% | Fixed Income | 10-15% | Derivatives | Derivatives |
Fixed Income | 11-14% | Derivatives | 5-10% | Portfolio Management & Wealth Planning are segregated into two different sub-groups named:
| |
Derivatives | 5-8% | Alternative Investments | 5-10% | ||
Alternative Investments | 7-10% | Portfolio Management & Wealth Planning | 10-15% | ||
Following are the list of topics covered by Certified Public Accountant (CPA) credential:
Read More: FMVA Certification
For CPA
Core Section | |||
Auditing & Attestation (AUD) | Financial Accounting & Reporting (FAR) | ||
Domain | Weightage | Domain | Weightage |
Ethics, Professional Responsibilities, & General Principles | 15-25% | Financial Reporting | 30-40% |
Assessing Risk & Developing a Planned Response | 25-35% | Balance Sheet Accounts | 30-40% |
Performing Further Procedures & Obtaining Evidence | 30-40% | Transactions | 25-35% |
Forming Conclusions & Reporting | 10-20% | ||
Taxation and Regulation (REG) | |||
Domain | Weightage | ||
Ethics, Professional Responsibilities, & Federal Tax Procedures | 10-20% | ||
Business Law | 15-25% | ||
Federal Taxation of Property Transactions | 5-15% | ||
Federal Taxation of Individuals | 22-32% | ||
Federal Taxation of Entities | 23-33% | ||
Discipline | |||
Business Analytics & Reporting (BAR) | Information Systems & Controls (ISC) | ||
Domain | Weightage | Domain | Weightage |
Business Analysis | 40-50% | Information Systems & Data Management | 35-45% |
Technical Accounting & Reporting | 35-45% | Security, Confidentiality, and Privacy | 35-45% |
State & Local Government | 10-20% | Considerations for Systems and Organization Controls (SOC) Engagements | 15-25% |
Tax Compliance & Planning (TCP) | |||
Domains | Weightage | ||
Tax Compliance & Planning for Individuals & Personal Financial Planning | 30 - 40% | ||
Entity Tax Compliance | 30-40% | ||
Entity Tax Planning | 10-20% | ||
Property Transactions (Disposition of Assets) | 10-20% | ||
Target Audience
For CFA
The CFA credential are especially designed for those who have practical experience in finance, business development, and economics. The professional should have experience at the senior management level.
- Economists
- Investment & Financial Manager
- Risk & Asset Manager
For CPA
The CPA credential is specifically targeting those who want to pursue their career as a skilled public accountant. They should have two years of experience in public accounting.
Specific Requirement for taking the Certification Exam
For CFA
The basic requirement for starting your career as a Chartered Financial Analyst is to get yourself enrolled in CFA Level I exams. Following are the eligibility criteria, one have to follow the following criteria;
- Professionals should complete their bachelor’s degree or relevant program from a well-known university. But if you are confused about whether your acquired degree meets the exam requirements or not, for this matter, you need to consult the institute’s educational department.
- But if you haven’t completed your graduation degree, you can apply for the CFA Level II exam in the 11th month of your graduation degree. But at CFA Level III, one needs to complete a graduation degree with 4000 practical experience working.
- If the working experience counts, a person needs to have 4000 working experience hours in combination with three years of educational level for acing CFA credential.
For CPA
One needs to fulfill four requirements, including practical experience, education, ethics, and exam, for acquiring the CPA credential. The professional should have a basic level of technical proficiencies and a proper understanding for getting public accounting
Explore Further: Certified Management Accountant (CMA) Certification
Price Incurred for CPA and CFA
For CFA
The CFA has three different levels for the CFA exam and for that, you need to spend an amount to get enrolled in this exam. Below mentioned table is the real depiction of the price required for the CFA exam.
Features | Early Registration Fee | Standard Registration |
Cost Incurred | $940 (USD) | $1,250 (USD) |
Period Timings | 14 November 2023 through 23 January 2024 | 24 January 2024 through 14 May 2024 |
Durations | 18 - 24 Months per level | |
Enrollment Fee | $350 (USD) | |
Rescheduling Cost | $250 (USD) | |
For CPA
The overall fee structure of CPA exam details are mentioned below in the table:
Features | On-site Fee | Live Online |
AICPA | $1,795 | $1,595 |
Non-Members | $1,995 | $1,795 |
PCPS Firms & CITP or CGMA Credential Holders | $1,695 | $1,495 |
Group of 2 - 5 | $100 Per Person Automatically | |
Group of 6 or More | $200 Per Person Automatically | |
Pack 7 Option | $300 Per Registration | |
Job Roles for CPA & CFA Certifications
Following is the list of future job prospects for CPA Exam:
- Public & Corporate Accounting
- Forensic Accountant
- Financial & Budget Analyst
- Chief Financial Officer
- Fraud Investigation
- Tax Management
For the CFA Exam
Below is the list of future job prospects for CFA Exam: a candidate will enjoy a senior management role;
- Investment & Financial Manager
- Risk & Asset Manager
- Economists
- Portfolio Management
- Senior Level Management Position
Click for More: Highest paying jobs in 2024
Factors that affect the CFA vs CPA Salaries
When you start choosing any credential among CFA and CPA certifications, you need to select them according to your interests, future job prospects, and salaries offered in the market. So below, we are going to mention some of the key factors;
1. Location
The first one among the key factors is the location where you are going to apply. The geographical placement always impacts the choices of Financial analysts and public accountants. Although both are related to the accounting and financial departments, there are some differences between their job roles and their demand according to different places.
For example, if we look at the difference between the CFA and CPA’s salary in San Francisco it is different. If you are a Certified Financial Analyst and want to serve as a qualified CFA certifier, then you will get around $119,200 (USD). But if you started your career as a Certified Public Accountant there, you will receive a handsome amount of around $112,650 (USD).
2. Area of Expertise
Professionals will get the demanded salaries according to the level of mastering proficiencies, one will develop when they get enrolled in CFA or CPA credential. The industry-related expertise for CPA credential is required in high-demanded professional areas, such as Public & Corporate Accounting, Forensic Accountant, and Tax Management. These highly qualified professionals will get a chance to demonstrate basic investment tools for making effective wealth planning and directing organization portfolios.
After getting qualified in the CFA credential, one will need a highly valued skill in significant departments, such as Risk & Asset Management, Portfolio Management, and Economist. The professional will showcase technical accounting expertise to render advisory services and advanced financial suggestions.
3. Job Occupation Opportunities
Both certifications CFA and CPA have their worth. The CFA credential holder will get the chance to occupy advanced designation after completing your certification. So, the CFA and CPA salary depends upon the position a professional will got. For example, a professional will work as a financial analyst and he will get $67,500 while if he worked as a portfolio manager he will earn $99,200.
On the other hand, the CPA credential holder will receive a handsome amount of salary based on the associated occupation. For example, there is a difference between the salary amount earned by a Senior Accountant and a Financial Director position, the first one will get $75,000 while the other one will get $121,200.
4. Practical Experience
The practical experience with specific certifications will have a great impact on the salary one will receive. So if you are looking for an entry-level job’ salary of CFA certification exam, you will receive almost $37,000 but if you have a highly qualified experience with the associated credential, you will get $187,700.
The salary of CPA credential, he will get almost $43,500 at the early stage of experience and a professional who has expert experience will get $146,700.
But there is still a difference a person will face whether they have CFA or CPA certification.
5. Relevant Certification
If a professional has appropriate certification or credentials with practical work, you will get amazing results in your career path. So if you are looking for a solid financial analyst credential, you should go for the CFA exam but if you want to serve for a public account, you should go for the CPA exam. You can see a huge difference between this credential, the job roles, the salaries according to location, and the experience one will have after acing this certification.
Salary CFA vs CPA Certification
CFA Credential Salary According to Countries
For CFA’s Salary per Year
The basic average annual salary of CFA Certification is around $100,500 (USD). Following is the list of annual salaries according to different locations.
Location | Expected Annual Salary |
United Kingdom | £70,030 |
China | ¥654,240 |
Australia | $135,700 |
India | ₹7,718,650 |
Canada | $124,134 |
Japan | ¥13,472,490 |
UAE | AED 337,850 |
Singapore | $120,400 |
For CPA’s Salary per Year
The basic average annual salary of CPA Certification is around $91,980 (USD). Following is the list of annual salaries according to different locations.
Location | Expected Annual Salary |
United Kingdom | £70,030 |
China | ¥654,240 |
Australia | $135,700 |
India | ₹7,718,650 |
Canada | $124,134 |
Japan | ¥13,472,490 |
UAE | AED 337,850 |
Singapore | $120,400 |
CFA vs CPA Salary According to Cities
CFA vs CPA Salary Varies According to Career Level.
Cities | Expected Average Annual Salary | |
CFA | CPA | |
Santa Clara | $123,900 | $113,400 |
Federal Way | $122,500 | $112,200 |
Washington | $122,000 | $111,700 |
Mountain View | $120,400 | $110,200 |
San Francisco | $119,200 | $112,650 |
Los Angeles | $117,100 | $107,150 |
Hackensack | $116,889 | $89,800 |
Marysville | $116,694 | $106,900 |
Green River | $116,500 | $106,650 |
Tracy | $115,950 | $149,350 |
CFA vs CPA Salary Varies According to Career Level
Below is the list of what is the real difference between CFA vs CPA Salary according to Career levels.
For the CFA Salary
Following is the table of salary of CFA Certification varies per career.
For CPA Salary
Following is the table of CPA salary per career.
CPA vs CFA Salary per Job Positions
Here both CFA and CPA have their job roles. Below mentioned are some of the list of jobs
Job wise CFA Salary
Following is the list of salaries according to job role associated with the CFA Exam:
Job Positions | Expected Salary Per Year |
$67,430 | |
$73,600 | |
$149,000 | |
$99,200 | |
$87,800 |
Job wise CPA Salary
Following is the list of salaries of CPA Certification differ to job position.
Job Positions | Expected Salary Per Year |
$75,000 | |
$93,850 | |
$114,000 | |
$106,250 | |
$121,200 |
Conclusion
To conclude this all, a professional will need to make a wise decision regarding choosing CFA and CPA certifications. For a successful financial career, one needs to demonstrate their commitment, experience, and market expertise. Both are great choices, one will be made for getting their desired career in the financial industry. Although both credentials have their specialized role and have their rewarding opportunities, when a professional decides on financial analysis.
Frequently Asked Questions
What is the key difference between CFA and CPA Certification?
The Chartered Financial Analyst (CFA) Certification is specially designed for those who want to start their career in financial analysis while CPA certification is developed for those who want to render their services in designing financial reports, examining overall taxation, and monitoring the auditing process
Is CPA certification more worth it than ACCA?
ACCA credential is one of the best international accounting and financial credentials while CPA is a good choice for a public accountant. So if you are looking for a successful career path in accounting then you should give this certification a try.
What are the factors that may impact the salary a professional will get after qualifying for the right certification exam among CPA and CFA?
A professional will get a handsome amount of salary while keeping the following factors in mind:
- Geographical Area
- Industry Practical Experience
- Job Opportunities
- Expert and Qualified Skills
- Gain an Appropriate Certification and Credential
What is difference between CFA vs CPA Salary?
A professional will get a market-focused CFA salary after qualifying a Certification is $100,700 (USD) while salary of CPA certifier holders will be almost $91,980 (USD).
