ACCA Vs. CFA - Understanding differences and similarities

To create a successful career in finance, it has become essential to have a relevant degree or specialized knowledge and requisite skills. Thus, the demand and popularity of certification programs at CFA and ACCA institutes in Mumbai and other cities have increased to help young aspirants, and experienced professionals develop and improve necessary knowledge, skills, and techniques to enhance their capabilities.

ACCA and CFA are two such popular courses that students wishing to enter the finance world often choose. But with many options comes the confusion of choosing the one that is right for your career goals. Thus, it is important to know how each of these certification programs works, what they hold in common, and what different skills or knowledge they offer to help you choose the right one.

What is ACCA?

ACCA is a highly valued credential in the world of finance that is offered by the Association of Chartered Certified Accountants (ACCA), a global body of professional accountants. This multi-tier certification program help aspirants build required skills and validate the necessary capabilities. Students or professionals who choose to apply for this program at ACCA classes in Delhi, ACCA classes in Mumbai, or other cities will be focusing on enhancing knowledge related to auditing, accounting, and taxation.

Though not popular and reputed as CFA, ACCA is still a widely appreciated credential that helps accounting aspirants or professionals improve their career prospects.

What is CFA?

It is known as among the most competitive and reputed credentials in the financial world; CFA offered by the Chartered Financial Analysts (CFA) Institute is considered the gold standard of financial analysis and investment management.

Students who choose this certification program focus on improving their knowledge and skills in several key areas in finance. Though an MBA in Finance from one of the reputed institutes is the preferred credential when you aim to make your career in top investment banks, CFA comes the second close.

Difference between ACCA and CFA

Although both CFA and ACCA are highly valued financial credentials, these both have some key differences, especially how the exams are governed, which are the key financial areas both programs focus on.

Here is the ACCA Vs. CFA key difference.

• Exams for ACCA are governed by the Association of Chartered Certified Accountants (ACCA), UK while that of CFA are governed by the CFA Institute, USA.
• To become CFA or ACCA qualified, the candidates have to clear three CFA or ACCA levels.
• ACCA certified program focuses on the following topics:Financial management and reporting
• Accounting and auditing
• Ethical and professional standards
• Taxation
• CFA certification program includes the following primary topics:Economics
• Financial reporting and analysis
• Fixed income
• Corporate finance
• Portfolio management
• Equity investment
• Alternative investments
• Ethics and professional standards
• Derivatives

Career opportunities for CFA qualified

CFA certified professionals can choose a job profile from:

• Wealth manager
• Portfolio manager
• Strategic analyst
• Investment analyst
• Financial consultant

ACCA certified professionals can choose their career from:

• Accountant
• Tax manager
• Finance manager
• Financial consultant
• Internal auditor

Who can apply for CFA and ACCA?

To qualify for CFA, the applicants need to have a Bachelor’s degree, four years of professional experience, or four years of higher education work experience.

Aspirants who want to apply for ACCA require to have completed 10+2 from Commerce stream. Students who are pursuing graduation in Commerce or have completed BA or BSC with the foundation of accountancy can qualify for the ACCA exams.

Though both the credentials have a different level of reputation and value, you should choose from CFA or ACCA by considering the key subjects they want to learn, level of difficulty, your capabilities, and career goals.