Although CPAs and CFAs may seem similar at first, they differ in the duties that each job requires. CFAs are concerned primarily with investments, whereas CPAs are responsible for all the financial aspects of a company, from keeping financial records to preparing and paying taxes. CPAs and CFAs also differ in terms of the skills and education required, work schedules, and job outlook.
Skills and Education
Both professions require at least a bachelor’s degree in accounting or a related field, and a master’s degree in finance is usually required for CFAs. In order for CPAs to become certified, they must complete 150 semester hours of coursework (in most states) and pass a national exam. They are also required to continue their education to maintain their license. For CFAs, most licenses require sponsorship by an employer, so financial analysts do not have to be licensed at the time of employment. The main organization that licenses financial analysts is the Financial Industry Regulatory Authority (FINRA). Although having a license is not required at the time of employment, it is strongly recommended and sometimes required by more advanced positions.
Both CPAs and CFAs must be detail-oriented and have strong skills in analysis, communication and math. CPAs must also be very organized, as they may be required to work on several different projects simultaneously. For CFAs, technical skills and decision-making skills are necessary. Also, most CFA employers prefer knowledge of options pricing, bond valuation, and risk management.
Work Schedule
CPAs and CFAs have both been known to work overtime, but CFAs do so far more often. In fact, the Bureau of Labor Statistics stated in 2010 that about one third of CFAs worked 50-70 hours every week. CPAs are only required to work overtime during certain seasons, such as tax season or the end of the budget year. Both professions work primarily in offices, but some CPAs have the opportunity to work from home. While most CFAs are usually not able to work from home, they frequently travel to meet potential investors.
Job Outlook
CFAs have the distinct advantage over CPAs when it comes to salary and job outlook. In 2010, the average salary for CPAs was $61,690. For the same year, CFAs earned an average of $74,350 per year. According to the Bureau of Labor Statistics, employment for CFAs is expected to grow 23% between 2010 and 2020, which is faster than the average. CPA job outlook, on the other hand, is projected to be about 16% for the same time frame.
Overall, a certified public accountant and a certified financial analyst have very different duties, but each profession requires many of the same skills. Becoming a certified financial analyst is a more involved process than becoming a certified public accountant, but the higher salary and more optimistic job outlook may make it the preferable choice.
