CA vs CFA: Understanding the Key Differences

December 11, 2024
Registrationwala

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CA vs CFA: Understanding the Key Differences

CA vs CFA: Understanding the Key Differences

December 11, 2024

Registrationwala

The qualifications of Chartered Accountant (CA) and Chartered Financial Analyst (CFA) are among the most sought-after qualifications for establishing a successful career in the field of accounting or finance. While both these qualifications are considered to be prestigious, they serve different skill sets and career paths.

In this blog post, we shall examine the roles, qualifications, and other differences between a Certified Public Accountant (CFA) and a Certified Public Accountant (CA) in detail. Whether you’re confused about which path to pursue or simply curious about these qualifications, this blog post will help you to have a clear understanding of the key differences between CA vs CFA.

What is CFA?

The full form of CFA is Chartered Financial Analyst. It is a prestigious qualification in the finance field, which gives candidates an in-depth understanding of financial management, economics and investment analysis.

To be a qualified CFA, an internationally recognized test conducted by the CFA Institute (headquartered in the USA) must be passed. All things considered, CFA is a popular career choice across the globe.

In the USA, CFAs normally get $90,000 (approx. Rs. 76,36,709) as their base pay, plus incentives, profit-sharing, stock equity, and other benefits, according to Payscale.com.

According to Glassdoor.com, the estimated salary for a Chartered Financial Analyst is ₹10,00,000 per year on average.

Role of CFA

A CFA plays a vital role in the financial industry. Because of their expertise in financial analysis, ethical decision-making and valuation, CFAs are highly sought-after across various domains. Mentioned below are diverse roles undertaken by a chartered financial analyst in the finance market:

A CFA is valued for their mastery of financial analysis. They help in raising capital, advise on mergers and acquisitions of companies, and provide strategic financial guidance to corporations.
They have expertise in investment portfolio investment and informed investment decision-making.
For their individual clients and customers, they come up with strategic investment plans to minimize asset risks.
Since CFAs are masters at analyzing market trends and risk assessment, they identify growth opportunities and give guidance to governments and businesses.
To fuel economic prosperity, their expertise in making sound financial decisions plays a major role.
To make out whether an investment is appropriate, a CFA weighs the risks against the projected returns.

What is CA?

CA full form is Chartered Accountant. For those who want to gain expertise in accounting, auditing, taxation, and general management, a Chartered Accountancy course is the right choice. A CA is a popular career choice in India, administered by the Institute of Chartered Accountants of India.

CAs play a very important role across various sectors including finance, taxation, advisory and auditing. In India, only qualified CAs are authorized to audit the financial statements of companies. This audit is mandatory for all private limited companies registered in the country, emphasizing the irreplaceable role of CAs in ensuring financial accountability and compliance.

According to Glassdoor.com, the estimated total pay for a CA is ₹7,91,500 per year, with an average salary of ₹7,11,500 per year.

Role of CA

The role of a Chartered Accountant varies across different industries but they typically focus on critical areas such as accounting, tax management, financial planning, and business consultancy. CAs are integral to ensuring financial accuracy, compliance, and strategic growth for businesses.

To ensure financial accuracy, compliance and effective growth management strategies, CAs play an integral role. Some responsibilities of a CA are as follows:

A CA has extensive knowledge regarding management of financial records, from basic bookkeeping to in-depth financial analysis.
They provide assistance to clients with filing tax returns and ensuring compliance with Income Tax Act 1961.
They advise their clients on financial planning, budgeting and investment strategies.
They are responsible for conducting financial audits and tax audits for companies, and ensuring proper maintenance and correctness of books of accounts.
They offer consulting services related to business restructuring and risk management.
To help businesses use their resources in an effective and efficient manner, CAs offer management consulting services.

Difference Between CA vs CFA

The distinction between CA vs CFA lies in their career paths, qualifications and focus on various other parameters. The basic difference between a chartered accountant and a chartered financial analyst is that the former specializes in accounting, auditing, taxation and finance and has a core presence in India while the latter focuses on global finance, investment management and wealth analysis.

The table below highlights the key parameters for CFA vs CA comparison. For aspirants to choose the path that aligns well with their professional goals, this comparison might be beneficial.

Parameter	Chartered Accountant (CA)	Chartered Financial Analyst (CFA)
Focus Area	A CA is considered an expert in accounting, taxation, audit, finance and legal domains.	The core focus of a CFA lies in the financial market.
Percentage Required	For the CA foundation exam, passing percentage is 20.47% for male candidates and 18.76% for female candidates.	The average CFA pass rate is 41%.
Course Duration	CA course generally takes 3-5 years, including an articleship period of 3 years.	At least 2 years or more must be dedicated to complete the CFA course.
Jurisdiction	CA course is recognized across India, and is organized by ICAI.	The CFA course is globally recognized and organized by the CFA Institute of USA.
Course Pattern	Chartered accountancy course consists of three levels: Level 1, Level 2 and Level 3.	The Chartered Financial Analyst course has three levels: Common Proficiency Test (CPT), Integrated Professional Competence Course (IPCC) & CA Final.
No. of Subjects	In total, there are 20 Subjects in 3 Groups.	In total, there are 10 subjects which keep repeating in all the 3 levels.
Core Priorities	A CA’s core priorities include accounting, finance, taxation advisory and auditing services.	Wealth Analysis, risk management and portfolio management are some of the core priorities of a CFA.

Conclusion

In this blog post, we explained the key differences between CFA vs CA. While CFA is a professional degree granted by the US-based CFA Institute, the CA degree is a professional degree granted by the Institute of Chartered Accountants of India (ICAI) in India. The role of a CA in the Indian economy is extremely crucial. They help businesses to ensure compliance with regulatory requirements and legal requirements. A CFA works on a global scale and provides investment and risk management strategies to major corporations. Many individuals have both CFA and CA qualifications.

Want to avail auditing services for your business? Connect with Chartered Accountants at Registrationwala!

Frequently Asked Questions (FAQs)

Q1. Can CA and CFA degrees be pursued simultaneously?

A. Yes, it is possible to pursue CA and CFA simultaneously. However, a lot of dedication and strategic planning is required.

Q2. Can you work in the USA with a CA degree?

A. Yes, you can work in the USA with a CA degree. However, you must apply for and meet the licensure requirements to become a Certified Public Accountant in the USA.

Q3. Who is the American equivalent of Indian CA?

A. The American equivalent of an Indian Chartered Accountant is a Certified Public Accountant.

Q4. Who grants the CFA degree?

A. The CFA degree is granted by a US-based organization known as the CFA Institute.