CFA vs CPA? Which Designation is Better?
Speaking in overall terms, which one is better? Although its quite an achievement, it seems like everyone has their CPA licenses nowadays, as if there's an oversupply. Second, I've heard that the CFA is way harder than the CPA exam, but not sure if it's really worth taking it. Of course CFA pertains to finance and CPA to accounting, but which one is more rewarding in terms of job opportunities, breaking into IB, and salary?
I think the assumptions behind your question are faulty.
Relevant work experience trumps both. Figure out what you want to do first (presumably IB in your case), THEN find out how to position yourself to maximize your chance of getting in. Neither the CFA/CPA will give you a good return on time assuming your goal is to get into IB.
But if you must absolutely get one of the two designations with no regard to opportunity cost, make it the CFA.
That makes sense. Thanks for the feedback.
I am a contrarian here and argue that the CPA is far more well known and highly regarded, and with it you'll never be unemployed.
The CFA gives you no authority and is only recognized within the finance bubble.
Plus the CPA is worlds easier. Go for the CPA.
This, I'll take the one that puts food on the table, every time.
Going to disagree on the CFA part. Worst case scenario is that many people do their own ER gig because it's fairly easy to do with a CFA. Not to mention the fact that (in general) ER pays a lot more than accounting and audit+tax is boring AF.
Didn't see any commentators noting experience. I am a CPA and am taking Lev III this June. Figure out what you want to do and work backwards. Common misconception that CPA is easier, much more tedious memorization imo. Unless your going big4 accounting, I see limited appeal in CPA. There is substantial overlap in knowledge though.
CPA goes way further than the CFA, especially in the states. The CPA also has various, industry specific extensions (for business valuation, real estate, corporate restructuring, etc.).
Both are completely irrelevant when it comes to investment banking. Neither have anything in common and serve a very specific purpose for their respective roles. If you're trying to break into IB, your time would be best spent networking and preparing for interviews.
Well said. That answers my question. Thanks!
Yes, it does not help you much in terms of breaking into IB. It does help your career.
Not in IB, though, which is what this subforum is about.
If you want to gain the maximum finance and accounting knowledge necessary for a successful career in IB, take two upper level finance classes and two upper level financial accounting classes in undergrad. That will give you more finance and accounting knowledge than 90% of your fellow analysts. Taking the CFA and/or CPA for IB would be like the Navy capturing Abu Bakr al-Baghdadi, putting him in a straightjacket in a maximum security prison, and then using a $65MM trident missile to blow the prison up- it's overkill and not needed.
Agree 100%. I don't really see why someone would start on it without intentions on being in ER/AM/HF. I have noticed a small amount of PE funds that make their employees get it but that is very rare.
Have you considered taking the CMA?
Is the CMA useful? It seems like the junior version of the CPA, but with a heavier focus on finance. It doesn't seem like it would be too difficult/expensive/time consuming to get, but is it worth it at all? I can't sit for the CPA right now and I don't have an interest in working in Portfolio Mgmt, so the CFA opportunity cost isn't great for me.
I do think the CFA is harder but at the same time is underestimated by the test takers. There are lot of people who register and then by March-April have already given up. It is not as much as a requirement in finance as the CPA is for Big4. I'd say the amount of preparation and process is like preparing to take the CPA exam every year for 3 years.
Neither one is objectively "better"...but if your goal is IB, then they're both not worth it.
If your goal is IB, spend your time understanding corporate finance, valuation, the capital markets, distressed debt, etc.
CPA or CFA which is more employable? (Originally Posted: 03/22/2017)
I'm a senior leaving college this summer. I've been applying to a lot of jobs. If I don't get a job I want to get a designation of some sort to make myself more employable. Which designation would it be easier to get a job with, a CPA or a CFA?
CPA
Just on the basis of employability, I don't think there's even an argument here against the CPA
I don't think it's that easy. CFA is going to take you at least 3 years and I'm not sure how it is in the US but in Canada to get your CPA you need a ton of prerequisite university courses before you're even eligible to write the first test.
Assuming all else equal. the CPA is certainly more employable as it's a specific requirement for a very large profession which the CFA is not.
It depends on what you want to do. If your goal is simply to get a job (any job) then presumably the CPA designation will create an easier path for you to an accounting related role, which there are many of. If you are wanting to do something more specific then it depends. Based on what you've written though it sounds like your looking for anything so if you are decent at accounting and don't mind doing it for a living then the CPA is probably your better bet. Not to mention the exams are easier than the CFA exams and don't take as long.
CFA or CPA (Originally Posted: 05/15/2016)
Title basically says it itself...for a student who is both an Accounting and Finance major and is entertaining both careers in accounting and finance but not sure yet which way to go.
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