Choosing between the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) certifications is one of the most important career decisions finance professionals face. Both credentials open doors to lucrative careers, but they lead to distinctly different paths in the financial world.
This comprehensive guide examines the key differences between CFA and CPA certifications, including education requirements, exam structures, career opportunities, and salary potential. Whether you’re a recent graduate or considering a career change, understanding these distinctions will help you make an informed decision about your professional future.
What is a CPA? (Certified Public Accountant Overview)
A Certified Public Accountant (CPA) is a licensed accounting professional who has met rigorous education, examination, and experience requirements. CPAs are trusted financial advisors who help individuals, businesses, and organizations with tax planning, financial reporting, auditing, and strategic business decisions.
Core CPA Responsibilities:
- Tax Preparation and Planning: Preparing complex tax returns and developing tax strategies
- Auditing and Assurance: Examining financial statements for accuracy and compliance
- Financial Reporting: Creating and analyzing financial statements
- Management Consulting: Advising businesses on financial operations and strategy
- Forensic Accounting: Investigating financial fraud and disputes
The CPA license is issued at the state level, with each state board of accountancy setting specific requirements. This state-specific licensing allows CPAs to represent clients before the IRS and sign audit reports—privileges that set them apart from non-licensed accountants.
What is a CFA? (Chartered Financial Analyst Overview)
The Chartered Financial Analyst (CFA) designation is a globally recognized credential for investment professionals. Administered by the CFA Institute, this certification demonstrates expertise in investment analysis, portfolio management, and ethical standards in finance.
Core CFA Responsibilities:
- Investment Analysis: Evaluating stocks, bonds, and other securities
- Portfolio Management: Building and managing investment portfolios
- Risk Assessment: Analyzing and mitigating investment risks
- Research and Valuation: Conducting financial research and company valuations
- Wealth Management: Advising high-net-worth individuals on investments
Unlike the CPA, the CFA is a global certification with uniform standards worldwide. CFA charterholders work primarily in investment management, focusing on maximizing returns while managing risk for institutional and individual investors.
CFA vs CPA: Key Differences at a Glance
Understanding the fundamental differences between these certifications helps clarify which path aligns with your career goals:
Education Requirements: CFA vs CPA
The educational pathways for CPA and CFA certifications differ significantly, reflecting their distinct professional focuses.
CPA Education Requirements:
- Bachelor’s Degree: Required in any field, though accounting degrees provide the best preparation
- 150 Credit Hours: Most states require 150 semester hours (bachelor’s degree typically provides 120)
- Specific Coursework:
- 24-30 credits in accounting courses
- 24-30 credits in business courses
- Ethics coursework (requirements vary by state)
- Accreditation: Courses must be from regionally accredited institutions
CFA Education Requirements:
- Bachelor’s Degree: Required in any field, or be in final year of bachelor’s program
- Alternative Qualification: 4,000 hours of work experience over 3+ years can substitute for degree
- No Specific Coursework: No required courses, though finance/economics background helps
- Self-Study Option: Many candidates prepare independently using CFA Institute materials
Key Insight: CPAs face stricter educational requirements upfront, while CFAs can enter the program with more flexible backgrounds but face a more rigorous exam process.
Exam Structure and Difficulty Comparison
Both certifications require passing challenging examinations, but their structures and difficulty levels differ substantially.
CPA Exam Structure:
CPA Pass Rates: Average 45-60% per section
Testing Window: Year-round testing with blackout dates
Validity: Pass all four sections within 18 months
CFA Exam Structure:
CFA Pass Rates: Average 40-50% per level
Testing Window: Offered 2-4 times annually depending on level
Progression: Must pass levels sequentially
Career Paths: Where CPAs vs CFAs Work
Your choice between CPA and CFA should align with your career aspirations, as each certification leads to different professional opportunities.
Common CPA Career Paths:
- Public Accounting
- Audit Manager/Partner
- Tax Consultant/Director
- Forensic Accountant
- Corporate Accounting
- Chief Financial Officer (CFO)
- Controller
- Internal Auditor
- Government/Nonprofit
- IRS Agent
- State Auditor
- Nonprofit Financial Director
Common CFA Career Paths:
- Investment Management
- Portfolio Manager
- Research Analyst
- Hedge Fund Manager
- Investment Banking
- Equity Research Analyst
- M&A Analyst
- Private Equity Associate
- Wealth Management
- Financial Advisor
- Private Banker
- Family Office Manager
Salary Comparison: CPA vs CFA Earnings by State
Salary potential varies significantly based on location, experience, and specific role. Here’s how accountants/auditors (typical CPA roles) compare to financial analysts (typical CFA roles) across major states:
May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information. Conditions in your area may vary. Data accessed June 2025.
Salary Growth Potential:
- CPAs: Can expect 10-15% salary premium over non-certified accountants
- CFAs: Often see 15-25% salary increases post-certification
- Experience Factor: Both certifications show strongest ROI after 5-10 years experience
Time and Cost Investment Analysis
Understanding the full investment required for each certification helps set realistic expectations and budget appropriately.
CPA Investment Breakdown:
CFA Investment Breakdown:
Financial Planning Tip: Many employers offer tuition reimbursement or exam support. Research company policies before committing personal funds.
Which Certification is Right for You?
Choosing between CPA and CFA depends on your career goals, interests, and circumstances. Consider these factors:
Choose CPA If You:
- Enjoy working with financial statements and tax law
- Want to start your own accounting practice
- Prefer broader career options across industries
- Value work-life balance (generally more predictable hours)
- Want faster certification completion (18-24 months typical)
- Are detail-oriented and enjoy compliance work
Choose CFA If You:
- Are passionate about investments and market analysis
- Aspire to work in investment management or banking
- Enjoy mathematical modeling and valuation
- Want global career mobility
- Can commit to intensive long-term study (2-5 years)
- Thrive in fast-paced, market-driven environments
Industry Demand Considerations:
- CPA Demand: Steady growth driven by regulatory complexity and business expansion
- CFA Demand: Cyclical with financial markets but strong in wealth management growth
- Geographic Factors: CPAs needed everywhere; CFAs concentrated in financial centers
Can You Be Both a CPA and CFA?
Yes, professionals can and do earn both certifications, creating a powerful combination of skills. This dual certification is particularly valuable in certain roles:
Benefits of Dual Certification:
- Comprehensive Expertise: Master both accounting principles and investment analysis
- Career Flexibility: Qualify for positions requiring either or both credentials
- Competitive Advantage: Stand out in fields like investment banking or corporate finance
- Higher Earning Potential: Command premium salaries in specialized roles
Ideal Roles for CPA/CFA Professionals:
- Investment Banking: Combine accounting due diligence with valuation expertise
- Private Equity: Analyze targets using both accounting and investment frameworks
- Corporate Development: Lead M&A activities with a complete financial perspective
- Financial Consulting: Offer comprehensive advisory services
- Fund CFO: Manage both fund accounting and investment operations
Strategic Approach to Dual Certification:
- Start with the certification most relevant to your current role
- Gain 2-3 years of experience before pursuing the second
- Leverage employer support for costs and study time
- Consider which exam has more favorable timing for your situation
Ready to start your journey? Explore accounting certifications or find an accredited accounting program to begin your path to professional success.
Frequently Asked Questions
Is CFA harder than CPA?
The CFA is generally considered more difficult due to its lower pass rates (40-50%) and requiring 900+ study hours across three levels. The CPA has higher pass rates (45-60%) but requires meeting specific educational requirements, including 150 credit hours. The “difficulty” often depends on your background—those with accounting education may find the CPA more approachable, while those with finance backgrounds might prefer the CFA curriculum.
Which pays more, CPA or CFA?
According to BLS data, the median salary for accountants and auditors is $83,610 nationally, while financial analysts earn a median of $99,010. However, salaries vary significantly by location, experience, and specific role. CPAs in senior positions like CFO or Partner often match or exceed CFA salaries, while CFAs in investment management can earn substantial bonuses that aren’t reflected in base salary data.
How long does it take to become a CPA vs CFA?
Becoming a CPA typically takes 18-24 months after meeting educational requirements (150 credit hours). The CFA process is longer, requiring a minimum of 2 years but often taking 3-5 years, as you must pass three sequential exams with mandatory waiting periods between levels.
Can I take the CPA exam without an accounting degree?
Yes, you can take the CPA exam without an accounting degree, but you must complete the required accounting and business coursework (typically 24-30 credits each) and meet the 150 credit hour requirement. Many non-accounting majors complete these requirements through post-baccalaureate certificate programs or master’s degrees.
Do I need work experience for CPA or CFA?
Both certifications require work experience. CPAs typically need 1-2 years of experience under a licensed CPA (varies by state). CFAs need 4 years of qualifying investment decision-making experience, which can be completed before, during, or after passing the exams.
