ACCA or CFA: Understanding Key Differences for Career Growth
Students with a commerce background struggle to decide on what they should pursue next. One of those decisions is whether to pursue ACCA or CFA. Choosing between ACCA and CFA can be a challenging decision, especially for finance enthusiasts. They are both excellent courses and have their own outcomes that may look similar but are slightly different and make a different impact. Both are globally recognized qualifications with different advantages, which makes it harder for you to select one. So, we are here to help.
In this blog, we shall discuss the key differences between ACCA and CFA to help you select the qualification that fits your needs and demands. Before we discuss the differences, let us quickly understand what CFA means.
Here, we shall discuss the key differences between ACCA and CFA to help you decide which course suits you the best. These differences are based on 5 different factors that must be considered during your selection of ACCA or CFA. Let’s dive into it.
ACCA or CFA, which is harder? It is a tough choice. Both ACCA and CFA are difficult to pass compared to other fields of study. Passing rates for both these courses are low; here is a fair comparison between the two courses:
We discussed different aspects of both ACCA and CFA throughout this content. However, if you still can’t decide which one is more suitable for you, let us discuss career options in detail for each of these courses.
What is a Chartered Financial Analyst (CFA)?
Before we talk about CFA, here is a quick understanding of ACCA. It is a course focused on the technical aspects of finance and business. ACCA is a globally recognized degree that builds up your career in taxation, finance, auditing, and many other areas. On the other hand, a Chartered Financial Analyst (CFA) is a qualification in investment management that focuses on portfolio management, financial analysis, and ethics. It has many subjects similar to ACCA, but it focuses more on the analytical side of modern finance. CFA has 3 different levels of exams that you must pass to earn the qualification. It also requires a 4-year bachelor's degree in the field of commerce for you to qualify for this course. Now, let us move on to the main purpose of this blog: ACCA or CFA: Major differences.Understanding the CFA and ACCA: Major Differences
Here, we shall discuss the key differences between ACCA and CFA to help you decide which course suits you the best. These differences are based on 5 different factors that must be considered during your selection of ACCA or CFA. Let’s dive into it.
1. Focus Area
The main difference between ACCA and CFA is their focus area. Let us individually break this down. ACCA focuses mainly on accounting, auditing, taxation, and financial management, which makes ACCA professionals experts in the technical part of the commerce field. It provides knowledge on the foundation of accounting principles, which helps you understand the basics in more depth. Report generation on each aspect of financial matters also falls under the ACCA job description. It makes you better at generating reports based on your understanding of the work done. CFA has a different focus area. It specializes in investment and the business market to understand the main profit-making strategy. CFA mainly focuses on areas like research, fixed income, portfolio management, and analysis of the available data. If you are interested in stock markets, asset valuation, and risk analysis, CFA is the way to go since it aligns more with your goals. When you are deciding on ACCA or CFA, their different focus area must be considered. Now, let us move on to the next major difference.2. Exam Structure
The exam structure for ACCA or CFA is different from one another. Here is a detailed exam structure breakdown. There are 13 exams in ACCA. Each of the exams is categorized into three different subgroups: Applied knowledge, applied skills and strategic professional. In applied knowledge, 3 papers test the theoretical aspects of your learning, whereas applied skills are all about practical knowledge you have in the finance world. Your strategic planning is also tested by giving you a set of questions that require strategic reasoning. The CFA exam is divided into 3 levels: Level I, II, and III. All these levels need to be crossed in order to get the qualification. The first level is all about the foundation, where your basic knowledge shall be tested, along with ethics and your expertise in financial tools. Second level emphasizes complex analysis and asset valuation, and the third level is about portfolio management. As you can see, the exam structure for ACCA or CFA is focused on different aspects of learning.3. Global Recognition
While ACCA or CFA are both globally renowned qualifications, they are recognized for different reasons. An ACCA qualification is recognized in over 180 countries for its expertise in accounting, finance, and auditing. The entire globe requires properly handled finance, and ACCA is who they turn to. It is recognized because of its practicality and daily usage. While CFA is also globally recognized, it is not used by the average population on a daily basis. North America, Europe, and Asia are the continents that use CFAs widely. A CFA degree is well-respected by people in the investment industry since CFAs help to make a reasonable guess in the investment industry and make a profit. These decisions are made through proper calculation of the odds and data analysis. So, ACCA or CFA are recognized globally in very different ways.4. Time
The course duration for ACCA or CFA is not the same. Here is how the timing for these courses works: ACCA does not have a specific duration that the course needs to be completed in. You can take the exams when you feel ready and have prepared well. It may take up to 2-3 years to prepare for the exam, depending on your preparation speed. However, there is no time crunch, so you can prepare at your own pace. Preparation for CFA typically takes 2.5-4 years if you pass each level of the exams in the exact order. It also does not have a specific time duration, but it is more structured than ACCA, and each level is carefully observed. The time duration for ACCA or CFA depends on your preparation style.5. Cost
For ACCA or CFA, the cost of one is more than the other. Let’s dive in. The cost of ACCA is significantly less than CFA, so if you are looking for affordability, ACCA is the better option to study. ACCA costs around NPR 505,080, including the total expense of study materials, tuition fees, and any other costs. You can study for cheaper if you can secure scholarships or get student discounts based on merit. As mentioned above, CFA costs more than ACCA. The price to study CFA is around NPR 885,150, including all the costs. It is relatively expensive when it comes to registration costs and study materials. However, similar to ACCA, you can get discounts and scholarships to afford to study CFA. These were the 5 major differences for ACCA or CFA. Furthermore, we shall discuss exam passing rates and difficulty so that you can prepare well for these exams.CFA vs. ACCA: Exam Passing Rates and Difficulty Compared
ACCA or CFA, which is harder? It is a tough choice. Both ACCA and CFA are difficult to pass compared to other fields of study. Passing rates for both these courses are low; here is a fair comparison between the two courses:
ACCA
The passing rate for ACCA is 40% to 50%, depending on specific papers and your preparation. Here is a detailed breakdown of different exams and their passing rates:- Knowledge level: 50-60%
- Skills level: 40-50%
- Professional level: 40-50%
CFA
For CFA, the passing rate for students is 40%, depending on the different levels of CFA and your skills to cross each level with enough marks. Only 4 out of 10 students can pass this paper, which means the odds are not good and slightly slimmer than ACCA. Let us break the structure down and discuss passing rates for each level of CFA.- Level I: 35-39%
- Level II: 44-47%
- Level III: 47-48%
How To Choose Between ACCA And CFA For Your Career
We discussed different aspects of both ACCA and CFA throughout this content. However, if you still can’t decide which one is more suitable for you, let us discuss career options in detail for each of these courses.
ACCA
There are many career paths for ACCA depending on your interests and talents. You can choose ACCA as your career path if the following points match your goals.- An interest in reporting, management accounting, or auditing.
- Dream of working in corporate finance or accounting firms.
- If you prefer flexibility in business and finance.
- Leadership jobs
- If you enjoy structure and stability.
CFA
CFA career paths are slightly different from ACCA. Here are a few reasons that align with CFA goals, and if you relate to any of these characteristics, you can choose CFA.- Passion for investment analysis, portfolio management, or research.
- Wish to work in investment banks and financial firms.
- Enjoy understanding data and the financial market.
- Interest in quantitative analysis.
- Specialize in markets, management, or risk analysis.
Why Choose Seekshya Academy for ACCA?
Seekshya Academy is one of the best ACCA course providers in Nepal. They provide coaching classes for students pursuing ACCA. If you are looking for guidance and classes for your ACCA journey, Seekshya Academy is the way to go. Here are a few reasons why you should choose Seekshya for your ACCA journey.- They understand the ACCA structure and cover the entire syllabus in a respectable time so that you can have time to prepare for your exams.
- Exam-focused preparation is done in Seekshya. They help students understand the exam pattern and prepare them accordingly.
- Mock tests are provided so that you can be more confident on your actual exam by becoming familiar with the question pattern.
- They provide affordable packages for Nepalese students who want to pursue ACCA, along with scholarships and many discounts based on merit and financial need.