ACCA vs CFA: Which Should You Study?

Are you stuck between ACCA and CFA? You’re not alone—choosing the right qualification can feel like a big deal, and it is! ACCA and CFA stand out as world-class qualifications leading to exciting and great-paying careers in finance and accounting. Which one is perfect for you? Let’s break down whether you want to be an accounting guru with ACCA or a financial enthusiast in an investment strategy with CFA and which path will get you there. Ready to find your perfect match? Read along and find out!

The major mistake I’ve seen candidates make here is that they assume that the choice of ACCA vs CFA is the one they are making. That is completely incorrect! The choice is whether they want to understand finance, accounting, and business (ACCA) or specialize in finance (CFA). And unfortunately, most choices are made based on either which course they’ve heard is better, or what most friends are doing.

What is ACCA Certification and What Does it Cover?

The ACCA full form is Association of Chartered Certified Accountants. ACCA is an international professional certificate of accountancy and financial management. This course covers issues relating to financial accounting, management accounting, taxation, law, audit, and financial management. You are set for a position related to accounting and finance in different organizations, having an in-depth coverage of accounting principles and practices.

What is CFA and What Does it Cover?

The CFA full form is Chartered Financial Analyst. CFA designation is one of the most prestigious credentials for finance practitioners in investment management and financial analysis. In this regard, the CFA curriculum would expose one to intensive studies in investment management, portfolio analysis, financial reporting, and standards imbued with ethical considerations. It prepares an individual for a career in asset management, financial analysis, and investment banking with intense knowledge and analytical skills.

Breaking Down the Differences: ACCA vs CFA

Course Structure:

ACCA: 13 ACCA papers are broken down into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. It spans a broad area of topics on financial and management accounting, taxation, and audit, hence giving the candidate an overall and comprehensive overview of the different aspects of accountancy and finance.

CFA: The CFA program is divided into three levels concerning financial analysis and investment management. It emphasizes investment tools, asset valuation, portfolio management, and ethical standards—everything that a finance professional could want in their life.

Global Recognition: 

ACCA: ACCA certification has recognition in over 180 different countries and is greatly preferred by employers because of its wholesome approach to accounting and financial management. It appeals to careers in accounting, finance, and audit in most industries around the world.

CFA: The CFA title is the flagship of investment management, and it has an enormous regard among finance professionals worldwide. It proves to be exceedingly helpful in getting senior-level jobs in investment banking, portfolio management, and financial analysis—it has high recognition across more than 160 countries.

Duration:

ACCA: It generally takes between 2 to 3 years to qualify for the ACCA certification. However, it may be variable considering previous qualifications and exemptions that you may get while entering the certification. Program flexibility allows the student to proceed at their pace; thus, it is the right course for people combining work with study.

CFA: This is generally supposed to be done within 2-5 years, considering that candidates need to pass three difficult levels of exams, every one of which necessitates the candidate putting extra effort into studying. Due to their rigorous nature, many candidates have to take every level of these exams several times, hence increasing the duration.

Scope

The major difference between the scope of ACCA vs CFA is the sector or industry they are involved with. The ACCA-qualified professionals are engaged with the finance and accounting sectors while CFA-qualified professionals are engaged in investment banking sectors. If you are interested in financial accounting, you can opt for ACCA. However, if you are interested in investment and portfolio management, you can shift towards CFA. 

Exam Format

ACCA has several levels of exams while CFA has three levels of exams. ACCA exams are computer-based which helps you to take the exam any time you want. On the other hand, the CFA  exam is a paper-based exam that happens in June. Another difference in the exam format is that ACCA only has multiple-choice-based questions. On the other hand, CFA exams are essay-based questions.

Salary

Generally, the salary of a CFA is more than ACCA. However, the salary of a professional is largely dependent upon work experience, location, companies, and other additional qualifications. 

Entry-level salaries 

• ACCA
  Freshers with an ACCA certification can expect a starting salary of around ₹4–6 lakhs per year.
• CFA
  The starting salary for a CFA in India is typically around ₹5–7 lakhs per year.

Mid-career salaries 

• ACCA: Mid-career ACCA professionals can earn around ₹7–12 lakhs per year
• CFA: Mid-career CFA professionals can earn around ₹8–15 lakhs per year

Senior-level salaries 

• ACCA: Senior ACCA professionals can earn around ₹12–20 lakhs or more per year
• CFA: Senior CFA professionals can earn around ₹15–25 lakhs or more per year

Professional Experience

CFA requires more working experience than ACCA. ACCA requires three years of working professional experience while CFA requires four years of working experience. 

Eligibility

For ACCA:

Education: You must have passed 12th grade or equivalent, and have a minimum aggregate of 65% in English, Mathematics, and Accounts 

Work experience: You must have at least three years of relevant work experience in finance or accounting 

Exams: You must pass all 13 exams across the three levels of the ACCA 

Modules: You must complete the Ethics and Professional Skills module

For CFA: 

Education: You must have a bachelor’s degree or equivalent, or be in the final year of your bachelor’s degree

Work experience: You must have four years of qualified, professional work experience, or a combination of work and college experience

Admission criteria: You must meet the professional conduct admission criteria

Study Material

Both CFA and ACCA require textbooks, online courses, and study materials. 

ACCA study materials 

ACCA Approved Study Texts: By BPP Learning Media

Study Texts: By Kaplan Publishing

Exam Kit: By BPP Learning Media

ACCA Revision Kits: By Kaplan Publishing

Pocket Notes: By BPP Learning Media

ACCA Pass cards: By Kaplan Publishing

CFA study materials 

Textbooks: Designed to be comprehensive and self-contained

Practice exams: Designed to be comprehensive and self-contained

CFA Level I Mock Exam: By McCauley

The Intangible Economy: By M.R.

Algorithmic and High-Frequency Trading: By M.R.

Hedge Hunters: By M.R.

Introductory Econometrics for Finance: By M.R.

Exam Pass Rates

The average pass rate for ACCA is 40% to 50%. On the other hand, the pass rate of CFA is 40% to 45%

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ACCA vs CFA Career Opportunities

When the choice must be made between ACCA and CFA, it should be realized that the difference lies in career choice. Both ACCA and CFA have excellent job prospects, but they cater to different niches in the financial domain. You should pick the one that aligns with your career aspirations the best.

ACCA Job Opportunities

ACCA professionals have a good chance of getting employment in accounting, auditing, financial management, and taxation. The most frequent job designations provided to ACCA-qualified professionals include the following: Financial Accountant, Management Accountant, Internal Auditor, Tax Advisor, and Finance Manager. ACCA certification is highly rewarding when one needs significant knowledge regarding financial reporting, compliance, and corporate governance; it is ideal for those who want leadership positions in accountancy and finance departments within various industries.

CFA Job Opportunities

Investment and finance are where CFA charter holders are highly demanded. The most popular job designations for CFA charters are the positions of Financial Analyst, Portfolio Manager, Investment Banker, Asset Manager, and Risk Manager. Especially in the areas of investment specialization, research analysis, and financial consultancy, recruiters highly prefer the CFA certification. A CFAcharter holderr can offer his services in banks and investment firms, hedge funds, and financial advisory firms. Here their experience in investment analysis and portfolio management is quintessential.

Choosing Between CFA and ACCA

Choosing between CFA and ACCA requires considering your long-term career goals and what particular aspect of finance or accounts you want to specialize in. Both come with their distinctive advantages and open up different career paths.

Why Should You Consider Studying ACCA?

ACCA is an ideal course for those desiring to pursue a career in accounting, auditing, and financial management. The scope of the ACCA qualification is broad, covering taxation, law, audit, and financial reporting. It means you can apply your skills in many diverse areas of business. After completing ACCA, the potential job titles include roles such as Financial Accountant, Internal Auditor, or Finance Manager—all of which are recognized globally in over 180 countries. 

ACCA is specifically important if you intend to pursue your career in corporate finance, public accounting, or even open your accountancy practice. Second, the flexibility of progression in ACCA examinations makes it the right alternative for candidates who wish to balance between work and study.

Why Should You Consider Studying CFA?

CFA certification remains the professional gold standard for individuals who want to pursue an investment management, financial analysis, or portfolio management career path. This is a suitable qualification for you if you have an interest in the financial markets and an expected career as a Financial Analyst, Portfolio Manager, or Investment Banker.

The CFA program covers all areas of investment tools, asset valuation, and portfolio management, with a strong emphasis on ethics. Indeed, the CFA qualification has gained a lot of respect in the present financial setting, especially in asset management, investment research, and hedge funds. With such rigorous exams, the shareholders are best placed for high-stakes jobs in the financial sector.

ACCA and CFA: Exam Structure and Difficulty Level

ACCA: ACCA consists of 13 exams divided into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. Various topics are covered in the examination, ranging from accounting to finance; thus, the qualification becomes quite tough due to its wider syllabus and practical experience requirements.

CFA: The CFA curriculum consists of three levels that focus on investment management, asset valuation, and portfolio management. These exams are highly technical, especially at the II and III Levels. The pass rates tend to be extremely low to show what kind of difficulty level you need to face while taking the CFA exams.

ACCA vs CFA Cost Implications

ACCA: ACCA will cost somewhere between INR 1.5 to 3 lakhs, including registration and exam fees. Although, the coaching fee is not included in this cost.

CFA: The total cost of the CFA Program would be around INR 2.5 to 3.5 lakhs, including registration, and exam fees. However, the coaching fee is not included in the same.

Rising Demand for CFA and ACCA Certification in India

As the country aligns with international economic standards and as financial markets evolve, there is a growing demand for ACCA and CFA certifications in India. These are sought by businesses and financial institutions with growing intensity where professionals with expertise in international standards are required. CFA and ACCA, with their rigorous training and world-class recognition, hold prominence in career advancement in finance and accounting with promising career prospects both within and outside the country.

CFA and ACCA Difficulty: Challenges and Solutions

CFA and ACCA are two of the most prestigious certifications. CFA concentrates on investment management and needs strong analytical skills along with the ability to grasp complex notions of finance. It requires an appropriate study plan and disciplined practice. 

ACCA has a vast syllabus that covers almost all the big areas of finance, accounting, and law, which makes it quite tough to learn about all those things too. This is possible through the division of the syllabus, utilizing revision resources, and scheduling flexible exams that ACCA allows to study at a good pace.

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Conclusion

ACCA or CFA, which one is better? The right qualification for ACCA and CFA will depend on a definitive career vision and focused niche areas of finance or accounting. Both come with some unique advantages, ACCA is suitable for making an all-around accounting and finance qualification with global acceptance, which most importantly proves to be versatile in application in diverse industries. CFA is the gold standard for investment professionals and is, without a doubt, comprehensive in its focus on knowledge and competencies in the field of investment management and financial analysis.

Therefore, the things you should consider while deciding are your career objectives, the industry you desire to go into, and the specific type of position you are aspiring to, which is why the choice will depend on your priorities and what one is looking to achieve in your professional life.

FAQ’s on ACCA Vs CFA

Is CFA tough?

Yes, the CFA exams have an impression of difficulty with a vast curriculum that demands deep knowledge of finance, investment management, and ethics. CFA requires dedication, a proper plan of study, and consistent preparations.

Which is preferable, ACCA or CFA?

It all depends on the goals you set for your career. ACCA should be better if someone is going for a career in accounting, auditing, or financial management, whereas CFA will be best for more focused people in investment management and financial analysis.

Is ACCA more challenging than CFA?

The challenge level varies from one person to another, depending on individual strengths and career focuses. ACCA is very broad, ranging over several aspects when it comes to finance and accounting, while CFA is highly specialized in its investment management; both are challenging in their own way.

Does CFA give ACCA exemptions?

No, the CFA qualification does not give exemptions in the ACCA examination. The two certifications have a different focus; while the CFA specializes in investment management, the ACCA specializes in accounting and financial management.

How does ACCA differ from an Accounting degree?

An ACCA is a professional accounting qualification, while an accounting degree is an academic degree.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.