8 differences between CFA and CPA Programs

Define CFA

CFA is known as “Chartered Financial Analyst” Program is a professional certification offered by internationally recognized CFA Institute from USA, formerly known as the Association for Investment Management and Research (AIMR) for the investment and financial professionals.

CFAis a globally respected certification and is widely considered to be the gold standard in the field of investment analysis.It is a graduate level investment credential established in the year 1962 and awarded by CFA Institute, which is the largest global association of investment professionals.Presently there are more than 123,000 CFA charter holders working in 145 nations globally.

In that respect are three stages of exams with areas covering, such every bit-

  • Accounting
  • Economics
  • Ethics
  • Money Management
  • Security Analysis

The CFA level one test is conducted twice per year in the month of June and December.
The main areas such as-

  • Ethical and Professional Standards
  • Quantitative Methods, Economics
  • Financial Reporting &Analysis
  • Corporate Finance
  • Equity Investments
  • Fixed Income
  • Derivatives
  • Alternative Investments
  • Portfolio Management
  • Wealth Planning

The level 2 exam is only conducted once per year in the month of June.

The tier 3 exam is also only conducted one time per year in the month of June. It concentrates on effective wealth planning and portfolio management by involving the candidate to learn and know all the concepts and analytical methods in the entire syllabus.

To become a CFA charter holder, a candidate should ask one of the following educational requirements.He or she should have four years of professional work experience with a bachelor’s degree or should be appearing in the final year of the bachelor’s degree or combining of both professional work experience and education totaling should be about four years. Of the candidates those are undergraduate qualification, the bachelor’s degree shouldget completed before registering for the Level II exam. In addition to this educational requirement, the candidate should have an international passport, with completing the assessment in English, should require the professional conduct admission criteria, and should live in a country from where the candidate is participating.

Define CPA

CPA program is a certification of expertise in the area of accounting.Only those CPA professionals can supply an opinion to the public regarding publicly distributed financial statements.CPA is also known as a Certified Public Accountant is a professional certification offered by the American Institute of Certified Public Accountants in order to maintain industry wide professional standards.

The CPA’s basic function is to help business’s needs.CPA program includes such as-

  • Tax preparation
  • Financial statements
  • Financial planning
  • Forensic accounting
  • Internal auditing
  • Income tax

CPA, is an accounting professional who has passed the Uniform CPA examination and has also gained additional state certification and experience requirements. To become a CPA, the candidate shouldfulfil the following criteria such as-

  • Complete a college degree inaccountingsector
  • Should pass the Uniform CPA Examination
  • Should have a certain amount of professional work experience in accounting at least fortwoyears

The CPA exam is prepared and sorted out by the American Institute of Certified Public Accountants.The CPA examination has four sections such as-

  • Auditing and attestation
  • • Financial accounting and reporting
  • • Regulation
  • • Business environment and concepts

CPA examination also involves sections such as-

  • Writing skills exercise
  • Multiple choice questions
  • Case studies

CPA certified professionals are asked to fill in a minimum number of continuing professional training (CPE) courses in order to keep the CPA designation.CPA program eligibilityrequirementsvary from one to anotherstate,butrequiredsuccessful to complete the four partCPAexamination.

CPA professionals are well respected strategic business advisors and decision makers. They work as consultants on many situations that including taxes and accounting. A CPAprofessional is a trusted financial advisor who helps individuals, businesses, and other entities to plan and reach their financial goals to gain success.

Now 5 differences between CFA and CPA programs

There are certain differences between financial professionals and Accountants with their designations. Accountants and Financial personals are both important members of the financial area, but sometimes the distinctions between the functional area performed by both the professionals are indefinite this makes the difference and distinguishes a CPA from a CFA.

Sl. No CFA CPA
1 Stands for Charted Financial Analyst Stands for Certified Public Accountant
2 Administered by CFA Institute Administered by American Institute of Certified Public Accountants
3 Professionals should maintain strict codes of conduct and high standards of ethics and integrity. Professionals should meet state’s requirements for membership into the institute’s ranks.
4 Professionals are likely to receive and analyze reports produced by a CPA or other accountant. Professionals involved in tax reporting and filing
5 Professionals recommend to their clients on how to invest on securities on the basis of public companies annual report that are prepared by CPA professionals. Professionals helps clients and companies in terms of minimizing taxes and maximizing profitability
6 A professional analyzes the growth and profitability of companies and their creditworthiness and the amount of debt they carry. Professional’s advices on different forms of business companies and the benefits and advantages of each in different situations.
7 Professionals are qualified to perform personal financial planning and wealth management. Professionals are trained to advise clients who have been audited or require audited reports.
8 If a client has a large sum of money and wish to invest, then he should hire a CFA pers If a client needs help preparing their taxes, then he should hire a CPA personal.
Industry recognition is good. Industry recognition is very excellent. Industry recognition is moderate.

Conclusion

As per the above table, both the programs have its own distinct level of functions which is very important to maintain the financial areas of any individual person or a company for their business growth. Hope this article may help and understand to know the various differences between CFA and CPA programs in the area of finance. To know more about CFA and CPA programs and get registered logon to our website URLs.

For CFA Program – URL: http://edudelphi.com/ae/cfa-course-dubai/

For CPA Program – URL: http://edudelphi.com/ae/cpa-course-dubai/

6 REASONS AS TO WHY TO BECOME A CPA!!

CPAs = Black Belt Accountants

CPA, or certified accountants, are finance professionals who have achieved expertise beyond a “normal” accountant does. This is done through advanced education, training, experience and hard work.

If you are an accountant who aspire to become partners in the accounting firm or move up the corporate ladder, then CPA is the best way to achieve it.

CPAs Are Needed Everywhere.

Corporations, non-profit organizations and governments in every industry around the world look for CPAs to fill in their senior finance positions.
Additionally, if you are up for a raise against someone with equal background, work ethic, experience, but you have your CPA License, the promotion will most likely go to you. Firms invest thousands of dollars into helping you take and pass the CPA Exam because they highly value this designation.

CPAs Are Indispensable.

After the financial crisis, corporate accountability has become the number one concern for companies and their shareholders. Senior management relies on Certified Public Accountants for financial health and integrity of the corporations.

CPAs Are in Demand.

As a result of the Sarbanes-Oxley Act, workload in the accounting department of every corporation has vastly increased, leading to a shortage of accounting experts in a global scale. At the same time, 75% of current CPAs will retire in 15 years, based on a study by the AICPA. This creates a golden opportunity for you to jump into this important industry.

CPAs Are Paid Better.

A study by global recruiting agency Robert Half points out that CPA on average earns 10% better than non-CPA. Also, CPAs with 5+ years’ experience are paid $80-110K in public accounting firms.

Travel Opportunities

As globalization is on the rise, accountants and auditors who can embrace globalization and understand International Financial Reporting Standards will be needed all over the world. If you enjoy traveling, or would like to even spend your time living in another country for a year or two, becoming a CPA is the way to go. You won’t only get the opportunity to explore the world, but you’ll receive tons of great experience doing it which will only help your career.

We hope you found this hopeful and that we gave you another nudge in the right direction: that of CPA licensure. Not many jobs come with these amazing benefits, so make sure the CPA Exam is on your radar!

Ready to start working towards your CPA credential??

Write back to us or call us to get expert feedback about your queries related to the course

Is CMA worth the time, effort and money spent?? What’s the value?

Here are 5 good reasons to go ahead.

1. Gold-Standard in Management Accounting

CMA is a much-respected designation in the corporate accounting world. CMA is an advanced professional certification specifically designed to measure the critical accounting and financial management skills.

2. Globally Accepted Management Accounting Certification

CMA is the most popular management accounting certification worldwide.

3. Better Salary

Let’s face it — we want to learn, but ultimately, we need the certification to get better-paid jobs. According to IMA, CMA holders earn 33% more than their non-certified peers.

4. CMA Skills are More Practical

80% of accountants end up in non-public accounting. The management accounting knowledge and skill is in fact more useful for these professionals. In fact, many dual CPA and CMA holders find the materials covered in CMA more interesting and practical in their daily work.

5. IMA Makes it Easy for Us

Unlike the CPA exam in which getting qualified is sometimes harder than passing the exam itself, IMA (the CMA exam administrator) make things clear, simple and organized for applicants. IMA openly welcomes international candidates with the exam offered in hundreds of locations worldwide. CMA candidates can focus on passing the exam, instead of getting stuck the bureaucracy and conflicting rules from different State Boards.

Sounds Great… But How Does This Benefit Me?

Let’s see if the CMA certification benefits YOUR career.

1. Can the CMA Certification Fetch You a Better Job?

Within the Finance department at J&J, the CMA is a highly regarded certification. The content of the CMA exam mirrors real-world applications used across the corporate finance and accounting functions.” – Ryan Perkins, CMA, senior financial analyst at Johnson & Johnson (Strategic Finance Magazine, April 2015)
The below mentioned fortune 500 companies are known to have CMAs in their key management roles:

  • 3M
  • Alcoa
  • AT&T
  • Bank of America
  • Boeing
  • Cargill
  • Caterpillar
  • ConAgra
  • Hewlett-Packard
  • Johnson & Johnson
  • Microsoft
  • Procter & Gamble
  • KeyCorp
  • Whirlpool
  • Saudi Aramco
  • Verizon
  • Xerox

You will notice that the majority are big, global corporations focused in manufacturing. If you have ever dreamt of working with any of the companies listed above then CMA is best for you

2. Are You Sure You Don’t Want to be an Auditor or Tax Accountant?

If you are rigid in your decision of building up a career in corporate accounting then CMA will enhance your profile and knowledge to a great extent in the field.
If you aspire to work in a public accounting firm, either as an auditor or in tax then CMA may not be good for you.

3. Is CMA Truly Valued in Where I Live?

The demand for CMAs is different in different regions across the US, and around the world.

Hope this has given you a further insight of how to benefit from CMA.

Join us if you want to get tips on how to plan, study and pass your CMA exam… on your first attempt!