ACCA vs CFA: The Biggest Dilemma

ACCA vs CFA: The Biggest Dilemma

For ambitious individuals drawn to the intricate world of finance, choosing the right career path can feel like deciphering a complex financial statement. Two prominent qualifications, ACCA and CFA, stand out as gateways to lucrative and fulfilling careers, but deciphering their nuances can be quite the intellectual puzzle. Fear not, intrepid financiers and this blog is your roadmap to navigating the intricacies of ACCA vs. CFA and choosing the route that aligns perfectly with your financial aspirations.

To know more, check out the video below:

Overview: Charting Your Course

ACCA (Association of Chartered Certified Accountants) and CFA (Chartered Financial Analyst) are internationally recognised qualifications, each stepping stone to prestigious careers in finance. However, their focus and target destinations differ, akin to highways leading to distinct financial landscapes.

ACCA

ACCA is a professional qualification focusing on accounting, finance, and business management. The Association of Chartered Certified Accountants is a UK-based professional body headquartered in London. ACCA is recognised globally, having 247,000 members and 526,000 students in more than 181 countries.

CFA

The Chartered Financial Analyst (CFA) Program, administered by the prestigious CFA Institute, is the global benchmark for investment professionals seeking to elevate their careers. Headquartered in the USA with over 166,000 charterholders across 135 countries, the CFA Institute sets the gold standard for ethical conduct and professional excellence in investment management.

ACCA vs CFA: Which Is Harder?

Many candidates often wonder: ACCA vs CFA, which course is more challenging? While both qualifications present their own demands, the CFA program is generally regarded as more difficult. This is largely due to its lower pass rates, intensive study requirements, and specialised focus on investment management.

Over the past decade, the average CFA pass rate has ranged between 41–52%, with candidates typically dedicating around 1,000 hours of study spread over 3–4 years to successfully complete all three levels. In comparison, ACCA exams tend to have higher pass rates, often reaching up to 50%, depending on the specific exam. Although rigorous, the ACCA program is considered relatively more manageable, partly due to the availability of comprehensive study resources and structured guidance.

The complexity of the two curricula also differs. CFA Levels II and III demand the application of concepts to advanced financial scenarios, requiring strong analytical and quantitative skills. By contrast, the ACCA curriculum focuses on accounting, auditing, and financial reporting, which candidates with a background in accounting can navigate more easily. Ultimately, while both qualifications are prestigious, CFA requires a higher degree of dedication and specialised knowledge to succeed.

Job Roles: Unveiling the Destinations

ACCA

ACCA’s broad curriculum opens doors to many roles across accounting, finance, and business. You could work in

• Accounting
• Financial Analysis
• Internal Auditing
• Tax
• Advisory
• Management Consulting
• Risk
• Investment Banking
• Corporate Finance
• ERP
• ESG Consulting
• and many more.

The versatility of ACCA course empowers you to explore diverse paths, choosing the one that resonates with your unique strengths and interests. The average salary for a fresher ACCA professional is 6 to 7 lacs.

CFA

With its laser focus on investments, CFA paves the way for specialised roles –

• Investment Banking
• Private Equity
• Asset Management
• Portfolio Management
• Research Analyst
• Wealth Management:
• Financial Advisor
• Financial Analyst
• & many more

The prestige associated with the CFA charter makes you a highly sought-after commodity in the competitive world of finance. The average salary for a fresher CFA professional is 6 to 7 lacs.

CFA vs ACCA: Understanding the Eligibility Criteria

ACCA offers flexible entry points –

• After Grade 10/ 12: Start your journey early with foundation-level courses.
• Graduation (B.Com/M.Com): Build upon your existing knowledge with exemptions based on your degree.
• CA Inter/Final: Leverage your CA studies for even more exemptions (up to 9 Exemptions)
• After CMA: Up to 9 Exemptions

This flexibility makes it accessible to aspiring professionals and career switchers eager to reinvent themselves.

CFA

For the CFA course, you can start preparation in the first year of graduation and appear for the Level 1 exam in the second year.

ACCA Subjects

Knowledge Level

1. Business and Technology (BT)
2. Management Accounting (MA)
3. Financial Accounting (FA)

Skill Level

1. Corporate and Business Law (LW)
2. Performance Management (PM)
3. Taxation (TX)
4. Financial Reporting (FR)
5. Audit and Assurance (AA)
6. Financial Management (FM)

Professional Level

Essential Papers

1. Strategic Business Leader (SBL)
2. Strategic Business Reporting (SBR)

Optional Papers (any 2)

1. Advanced Financial Management (AFM)
2. Advanced Performance Management (APM)
3. Advanced Taxation (ATX)
4. Advanced Audit and Assurance (AAA)

CFA Subjects

Exam Structure: The Test of Mettle

ACCA

The exams are computer-based and consist of 13 exams (fewer papers in case you are eligible for exemptions) divided into three levels (as explained above):

• Applied Knowledge
• Applied Skills
• Professional Level

Each level offers flexibility, allowing you to progress at your own pace and conquer sections individually. The ACCA exam happens 4 times a year:

• March
• June
• September
• December

CFA

CFA takes a more streamlined approach, requiring you to conquer three rigorous computer-based exams: Each level tackles diverse financial concepts, ranging from ethical foundations to portfolio management, with increasing complexity as candidates progress through Levels I, II, and III. Key areas tested include financial analysis, investments across asset classes, and derivatives. CFA exams happen multiple times in a year –

• Level 1: Feb, May, August, and November.
• Level 2: May, August, and November.
• Level 3: Feb and August.

Passing Rates for CFA and ACCA:

Both CFA and ACCA are prestigious professional qualifications in the finance field, but their pass rates differ significantly:

ACCA

Overall: The average pass rate for ACCA exams typically ranges from 40% to 50%, depending on the specific paper and level.

Breakdown by level:

• Knowledge level: 50-60% pass rate
• Skills level: 40-50% pass rate
• Professional level: 40-50% pass rate

CFA

Overall: The average pass rate across all three CFA Program levels (Level I, II, and III) is around 40%. This means, on average, only 4 out of 10 candidates who sit for the exams at any given level will pass.

Breakdown by level: The pass rate varies slightly between levels:

• Level I: 35-39% (most recent November 2023 exam was 35%)
• Level II: 44-47% (most recent August 2023 exam was 44%)
• Level III: 47-48% (most recent August 2023 exam was 47%)

Resources:

CFA Institute

ACCA Global

Cost

Investing in a professional qualification like ACCA or CFA requires a significant financial commitment due to various associated costs. These include registration and subscription fees, exam fees, study materials, and optional tuition and coaching fees. The estimated cost for pursuing ACCA, including all potential expenses, typically ranges from INR 3.5 to 4 lakhs. Similarly, the cost of pursuing a CFA can vary between INR 3.5 and 4.5 lakhs.

CFA Salary vs ACCA Salary: Who Earns More?

When comparing CFA vs ACCA, salary is a key factor to consider alongside career progression and industry opportunities. Both qualifications offer competitive remuneration, but CFA professionals generally command higher salaries due to their specialised expertise in investment management and finance.

ACCA vs CFA: Right Choice, Right Turn

So, which path should you choose? Like a complex financial model, the answer depends on your aspirations and financial compass. Are you drawn to the breadth and versatility of ACCA, or does the specialised thrill of investment analysis in CFA set your pulse racing?

ACCA might be your perfect partner if you yearn for a holistic business & finance career with diverse options.

If, however, the intricate dance of portfolio management and navigating the ever-shifting investment landscape ignites your passion,

CFA is your true match. Remember, this isn’t a binary choice; some ambitious individuals pursue both qualifications, creating a formidable financial arsenal that opens doors to the most elite positions in the finance world.

ACCA vs CFA: Which One is Better?

Choosing between ACCA (Association of Chartered Certified Accountants) and CFA (Chartered Financial Analyst) depends on your career goals. Both qualifications offer distinct advantages and cater to different industries.

ACCA

• Scope: ACCA covers various topics, including accounting, auditing, taxation, and financial management.
• Flexibility: The qualification allows you to study from anywhere in the world.
• Ideal for: Students and professionals looking to build a career in accounting, auditing, business & finance.

CFA

• Specialisation: CFA focuses on investment analysis, portfolio management, and financial planning.
• Career Opportunities: It is highly regarded in investment banking, asset management, and financial research roles.
• Salary Potential: The CFA qualification often comes with higher salary prospects and greater opportunities in the financial sector.

Can You Pursue CFA After ACCA?

Yes, pursuing a CFA after completing ACCA can be a strategic career move.

Benefits of CFA After ACCA

Strong Foundation:

ACCA provides a solid grounding in accounting, which supports the advanced investment concepts covered in CFA.

Complementary Skills:

CFA adds expertise in investment analysis and management, enhancing the accounting knowledge gained through ACCA.

Is CFA Suitable for Accounting Careers?

Although CFA is primarily associated with finance and investments, it can be valuable for accounting professionals.

Advantages for Accountants

Enhanced Knowledge: CFA improves understanding of financial markets, investment valuation, and risk management.

Career Growth: These skills can open doors to financial analysis, corporate finance, and treasury management roles.

ACCA + CFA: Synergy at its Finest

Combining the comprehensive knowledge of ACCA with the specialised expertise of CFA is a power move reserved for the truly dedicated. This potent cocktail of skills makes you a unicorn in the financial jungle, coveted by top firms seeking individuals who can navigate the accounting and investment landscapes equally adeptly.

Conclusion: Your Financial Odyssey Awaits

Choosing between ACCA and CFA is an investment in your future, shaping your financial odyssey. Carefully consider your career goals, interests, and learning style. Dive deep into the details of each qualification, seeking guidance from finance professionals who have already blazed these trails. 

At Synthesis Learning, we provide expert guidance and resources to help you navigate this journey, ensuring your decision aligns with your aspirations.

Remember, the right choice is about building a path driven by dedication and passion. Let your journey into the dynamic world of finance begin with confidence and clarity.

So, lace up your financial boots, map your journey with wisdom, and embark on your quest to conquer the ever-evolving world of finance, one qualification at a time

Also, read our blog on ACCA vs MBA

FAQs

1. What Are the Key Differences Between CFA vs ACCA?

The key differences between ACCA and CFA lie in their focus, governing bodies, and structure. ACCA focuses on accounting, finance, and auditing and is governed by the ACCA Institute in the UK. CFA specializes in investments and portfolio management, overseen by the CFA Institute in the USA.

2. ACCA vs CFA: Which Is Better?

ACCA vs CFA depends on your career goals. ACCA is ideal for those pursuing careers in accounting or auditing, while CFA is better suited for finance professionals specializing in investments, risk management, or portfolio modeling. The right choice depends on your aspirations.

3. Who Earns More: CFA or ACCA Professionals?

When comparing CFA vs ACCA earnings, CFA professionals often have an edge due to their expertise in high-demand financial roles. However, salaries depend on experience, industry, and job market conditions, so both qualifications offer great earning potential.

4. Is ACCA More Challenging Than CFA?

In the debate of CFA vs ACCA difficulty, CFA is often viewed as tougher due to its rigorous curriculum and study hours. 

5. Does CFA Offer Exemptions for ACCA?

No, the Chartered Financial Analyst (CFA) program does not offer exemptions for Association of Chartered Certified Accountants (ACCA) exams