Students have a lot of options to choose from after they have completed their 12th or after graduation. Because there are so may options, at times it becomes difficult for the students to decide which course to choose, since most of the courses require a good amount of investment with respect to time and money.
One such confusion is which course to choose between ACCA and CFA, and though we have a detailed articles listing the courses after graduation, that provides details of many courses students can pursue, in this article we are providing a list of differences between CFA and ACCA course.
There are many other courses which are compared to CFA, and we have listed some of them, for example – Difference between CFA and CA, FRM vs CFA, MBA and CFA, to help students decide the best choice.
Introduction:
ACCA and CFA are two of the most highly respected and widely recognized professional qualifications in the finance and accounting industry. Both ACCA and CFA Course offer excellent career prospects and are highly sought-after by employers.
However, they have different focuses, formats, and requirements. In this article, we will compare ACCA and CFA in detail and explore their differences and similarities.
ACCA:
ACCA is a professional qualification that focuses on accounting, finance, and business management. It is awarded by the Association of Chartered Certified Accountants, a UK-based professional body. ACCA consists of 13 exams, divided into three levels: Applied Knowledge, Applied Skills, and Strategic Professional.
The exams are computer-based and can be taken at any time of the year. The exams cover a broad range of topics, including financial accounting, management accounting, corporate and business law, taxation, audit, and assurance.
CFA:
CFA is a professional qualification that focuses on investment analysis and portfolio management. It is awarded by the CFA Institute, a US-based membership association. CFA consists of three levels of exams, each with a different focus and format. The exams are paper-based and are offered once a year in June. The exams cover a range of topics, including ethics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments, and portfolio management.
Key Differences between ACCA and CFA:
1) Focus: ACCA focuses on accounting, financial reporting, and management accounting, while CFA focuses on investment analysis and portfolio management.
2) Scope: ACCA is a broader qualification covering accounting, finance, and business management, while CFA is a more specialized qualification focused on investment management.
3) Exam Format: ACCA has multiple exams for each level, while CFA has three levels of exams, each with a different focus and format. ACCA exams are computer-based and can be taken at any time of the year, while CFA exams are paper-based and are offered once a year in June.
4) Difficulty: CFA is considered more difficult and requires more study time than ACCA. The pass rate for CFA exams is also lower than the pass rate for ACCA exams.
5) Time Required / Duration: CFA takes more time to complete than ACCA, as it requires passing three levels of exams, while ACCA has 13 exams in total. It typically takes around 4 years to complete the CFA program, while it takes around 3-4 years to complete the ACCA program.
6) Salary: According to the Global Salary Survey 2021 by Robert Walters, the average salary of an ACCA professional in the UK is £64,000 ($87,600) per annum. In contrast, the average salary of a CFA Charterholder Salary is around $120,000 per annum in the US. Average salaries of ACCA chartered accountants based on experience. The level of experience possessed by an ACCA member in a relevant field or industry plays a crucial role in determining their average salary. As expected, individuals with greater experience in a specific field can command higher compensation. Depending on your career progression prior to obtaining the ACCA qualification, here are the average salaries you can expect at different stages of your ACCA career:
| Level | Salary Per Annum |
| Entry Level | INR 7 Lacs per annum |
| Mid Senior Level | INR 11 Lacs per annum |
| Senior Level | INR 19 Lacs per annum |
7) Professional Experience: CFA requires a minimum of 4 years of professional work experience in investment decision-making, while ACCA requires 3 years of relevant work experience. CFA also has a more rigorous work experience requirement, as it requires the experience to be directly related to investment decision-making.
8) Membership: CFA has a membership association (CFA Institute), while ACCA has a professional body with membership (ACCA). The membership of both organizations provides access to a range of benefits and resources, including networking opportunities, professional development, and job opportunities.
9) Cost / Fees: CFA is more expensive than ACCA, as it requires registration fees, exam fees, and other related expenses. The cost of the CFA program varies depending on the country and the level, but it typically ranges from $3,000 to $4,000. The cost of the ACCA program also varies depending on the country and the level, but it typically ranges from $2,000 to $4,000.
10) Career Prospects: Both qualifications offer excellent career prospects, but in different fields. ACCA opens up a wide range of accounting and finance jobs, while CFA is more focused on investment management roles.
11) Eligibility: To enroll in ACCA, candidates must have completed their 12th grade or equivalent. Additionally, they must have completed certain foundation-level courses. To enroll in CFA, candidates must have a bachelor’s degree or equivalent or have completed their final year of study. However, in some cases, candidates without a bachelor’s degree can also enroll in the program.
12) Study Material: ACCA provides study materials, including textbooks, practice exams, and online resources. CFA also provides study materials, including textbooks and practice exams, but the study materials are designed to be more comprehensive and self-contained.
13) Continuing Professional Education (CPE): Both ACCA and CFA require their members to complete continuing professional education to maintain their designation. CFA requires 20 hours of continuing professional education each year, while ACCA requires 40 units of continuing professional development (CPD) every year.
14) Recognition: CFA is more globally recognized in the investment management industry, while ACCA is recognized more broadly across finance and accounting professions.
15) Exam Pass Rates: The pass rate for ACCA exams varies by paper and level, but it typically ranges from 40% to 50%. In contrast, the pass rate for CFA exams is lower, ranging from 40% to 45%. The low pass rate of CFA exams makes it a more prestigious designation.
16) Regional Differences: ACCA is more popular in the UK, Europe, Asia, and Africa, while CFA is more popular in the US, Canada, and Australia. However, both qualifications are recognized globally.
17) Career Path: ACCA qualification opens up a career in finance and accounting, including roles such as financial accountant, management accountant, and auditor. On the other hand, CFA qualification opens up a career in investment management, including roles such as investment analyst, portfolio manager, and research analyst.
18) Specializations: ACCA provides a range of specializations, including audit, tax, and financial reporting. CFA provides more specialized knowledge in areas such as portfolio management, risk management, and alternative investments.
19) Pass Rate in India: According to the official website of ACCA, the overall pass rate for the September 2021 ACCA exams in India was 38.6%. In contrast, the overall pass rate for the 2021 CFA exams in India was 25%.
Choosing Between CFA and ACCA
Why Should You Consider Studying CFA?
Embarking on a career in CFA offers numerous advantages for finance professionals. Acquiring the CFA Charter equips individuals with valuable skills applicable to equities research, financial modeling, investment management, and various other fields within the industry. Additionally, it fosters career growth by providing a deep understanding of complex financial concepts and enhancing credibility among industry leaders.
Moreover, the CFA designation holds significant value beyond the investment sector, serving as a recognized qualification that bolsters one’s professional reputation and unveils new opportunities.
Why Should You Consider Studying ACCA?
ACCA presents a compelling option for students and finance professionals seeking specialized knowledge in finance and accounting. With a vast network of over 8,500 partner organizations worldwide, ACCA creates global job prospects and connections for its participants.
Furthermore, ACCA offers a more accessible entry point with less stringent requirements. Its comprehensive curriculum covers essential subjects such as accounting, taxation, auditing, as well as law, business studies, financial management, financial reporting, and professional and ethical standards.
Who earns more CA, CFA or ACCA?
The salary of a fresher in ACCA, CFA, or CA may vary based on several factors such as work location, organisation, and industry. However, in general, the entry level salary for candidates with these qualification can be estimated as follows:
Chartered Accountant: A qualified CA can earn a salary ranging 5 – 8 Lacs INR per year, depending on the location and the industry. The demand for a qualified CA in India is very high, MNC and top companies hire them on a regular basis. Salary Source: Glassdoor
Chartered Financial Analyst: The starting salary for a CFA in India typically is almost similar to that of a CA. The difficulty level of CFA may not be as high as a CA but is still the passing rate is low, and the exams are tough. Since there the difficulty level of the exam is high, the demand for CFA is also high, and the salary ranges around 5 Lac rupees to 7 Lac rupees per year. Though as mentioned earlier, this range can vary depending on factors such as location and industry. Salary Source: Glassdoor
ACCA: Freshers with an Association of Chartered Certified Accountants (ACCA) certification can expect a starting salary ranging from approximately 4 Lacs to 6 Lacs per year. Multinational companies and the Big 4 hire ACCA in India in good numbers. Salary Source: AmbitionBox
The actual starting salaries for these certifications can vary widely based on factors such as the size and reputation of the employer, as well as the candidate’s qualifications and experience. All of these qualifications can lead to well-paying jobs in the finance and accounting fields. With experience and additional qualifications, individuals can significantly increase their salary potential over time.
Overall, it’s important to consider other factors when assessing salary expectations, and individual circumstances may lead to fluctuations in the actual starting salaries for these qualifications.
ACCA and CFA FAQs
- Which is preferable, ACCA or CFA?
Neither qualification is inherently superior as they cater to different roles in finance and accounting. The ACCA qualification is well-suited for aspiring accountants or professionals at entry- or mid-level positions seeking to enhance their accounting skills and expand their career prospects. On the other hand, the CFA qualification is more suitable for experienced finance professionals aiming to specialize in specific areas. - How does ACCA differ from an Accounting degree?
ACCA is a professional accounting qualification provided by an international body, while an accounting degree is an academic degree granted by a university. ACCA generally offers a more cost-effective option compared to pursuing an accounting degree. The ACCA qualification is equivalent to a postgraduate or master’s level qualification and distinguishes individuals from those who have foundational knowledge attained through an accounting degree. One can pursue the ACCA qualification after completing an accounting degree, or even without having pursued a university accounting degree at all. - Is ACCA more challenging than CFA?
The CFA qualification is generally considered slightly more challenging than ACCA, although this perception can vary from person to person. Many individuals face difficulty completing the three levels of the CFA due to the significant time commitment required. However, candidates can increase their chances of success by dedicating over 300 hours to studying. - Does CFA offer exemptions for ACCA?
The CFA exams do not currently provide exemptions. However, passing the CFA Level 1 examination can lead to waivers from other regulatory bodies, professional certifications, and global examinations. For example, individuals holding the CFA charter are exempt from taking ACCA’s Financial Accounting (FA) exam. FA is one of the mandatory papers in the ACCA Applied Knowledge level.
Conclusion:
In conclusion, both ACCA and CFA are highly respected and globally recognized qualifications. ACCA is a more diverse qualification, while CFA is more specialized. The decision to choose between ACCA and CFA depends on individual career aspirations and goals. Candidates interested in finance and accounting may prefer ACCA, while those interested in investment management may prefer CFA. Ultimately, both qualifications offer excellent career prospects and can be a stepping stone to a successful career in the finance industry.
