What is the difference between CFA and CPA?

What is the difference between CFA and CPA

– What Is a CFA?

The Chartered Financial Analyst (CFA) programme is a postgraduate a professional licence for investment and banking professionals offered worldwide by the CFA Institutes (previously the Association for Investment Management and Research, or AIMR). But how do you get your CFA charter? For this the candidates must pass three sections of challenging tests on topics such as ethics for finance, portfolio management and monetary evaluation. They additionally need to have four years of work experience making investing decisions.

 – What is a CPA?

In many western nations, certified accountants are referred to as Certified Public Accountants (CPAs). It is roughly comparable to the position of chartered accountant in other Asian countries.  The American Institute of CPAs (AICPA) awards the Certified Public Accountant (CPA) degree to those in the accounting profession. Individuals who want to become CPAs have to take the Uniform CPA Examination, complete certain academic requirements, along with relevant work experience. CPAs are licenced by local boards of accountants and must abide by severe ethical guidelines.

 – CPA vs CFA

In India, both the CPA and CFA qualifications are respected although they serve separate business demands. A CPA is appropriate for those who specialise in accounting, auditing, taxation, and financial reporting. The CFA charter, on the other hand, is more suited for individuals working in the field of investment banking, portfolio management, and financial analysis. While both involve extensive studies and tough examination, the CPA covers a larger range of accounting, whereas the CFA specialises in investment management.

 – What does a CPA do?

CPAs in India often review financial statements, prepare taxes, advise on tax strategies, and ensure following the financial legislation. They are frequently hired by public accounting companies, global businesses, and financial organisations.

 – What does a CFA Charter holder do?

CFA charter holders in India typically work in investment analysis, portfolio management, and financial analysis. They analyse financial data to make investment decisions, manage portfolios, and forecast market trends. CFAs frequently work for financial businesses, mutual funds, and asset management organisations.

 – CFA vs CPA Salary

CPA and CFA salaries in India can be worthwhile, but they vary depending on region, experience, and work type. CFAs typically earn greater wages, particularly in financial hubs such as Mumbai and Bangalore, reflecting the significant demand for investing expertise. Entry-level CFA charter holders can expect to earn between INR 6 and 12 lakhs per year, while seasoned professionals can make more than INR 20 lakhs. CPAs also command good wages, with entry-level employment ranging from INR 7-14 lakhs per year and senior roles possibly making exceeding INR 20 lakhs per year.