CPA vs CA vs CFA

[Mooze]

Figure theres got to be a few around here and just after experiences etc rather than the propagandist success crap they all spin on their websites. Mentors at work are good but one is CFA the other CPA, both biased towards the paths they took.
Really have no idea where I want to be in five years time so not a lot of help - I know I want something portable (location wise and company wise) as well as something that will make me easily employable. If it lets me work from home or part time in the long term all the better but not a prerequisite (all three would to a degree). Opportunity to go expat is also available with any of them from what I can gather.
Currently work in financial markets mid/back office and am doing my masters in accounting (undergrad wasn't specific enough except for CFA) which will serve me well no matter what I end up doing.
So any advice or relation of experience would be helpful.

 

[alexlee]

Depends on what you want to do. CPA and CA are obviously accounting qualifications. Rightly or wrongly CA is considered more prestigious, with recognition by UK CIMA, etc. That's accounting, though, so it's more geared towards roles like Product Control, Treasury, etc (i.e. finance type roles).

CFA is harder and is more geared towards research, front office, etc.

Both are portable as they are recognised world-wide (obviously as CFA is a US qualification). Working part time or from home isn't much of a choice in banking, though, if you want to progress up the ladder.
Alex

 

[Deepmarine]

Hi Mooze,

I'm currently enrolled in the CFA Level 1 for this December. I work in a Financial Markets front office role.

All 3 are completely different kettles of fish. A CA / CPA would allow you to work from home part time if you wanted to be say an accountant (you say you're doing your masters in accounting? Are you enjoying it?).

A CFA qualification gears you up to work in front office financial markets roles, also fund analyst positions, FOF analyst positions, perhaps strategy roles in corporations. Your opportunities of working from home in these positions are relatively slim (unless/until you get to a wealth level where you sit at home and just trade your own portfolio - but you don't need a CFA for that).

As you've flagged, you need a recognised accounting qualification to do a CPA/CA. This path is closed for me as my tertiary education doesn't qualify - that being said, I would never want to go and do these as I don't find accounting and tax that exciting (no disrespect to the people that do). I need a reasonable understanding of accounting and tax to do my job and my future career aspirations, but don't need a formal qualification in it.

For entry into a CFA, you only need to have a Bachelors of some description. However, you cannot obtain your actual charter until you've got 3 years of qualifying investment analysis experience. I'm not sure what your role entails, but the middle / back office roles at my bank wouldn't qualify.

So - it comes down to what you want to do? Do you want to work in the front office in an investment management capacity? Or do you want to get into tax / accounting for a small / medium / large shop? This will determine what you should pursue.

All 3 will allow you to work overseas I'd say, you just need to pick a path and pursue it with everything you can. Either would be quite rewarding (you could take both on if you had a high tolerance for punishment!)

p.s. the CFA has about a 40%-50% pass rate for all 3 levels. Each level takes around 150-250 hours of study depending on your background. Nothing to be sneezed at! This site is a great reference for the CFA: http://www.analystforum.com/phorums/ That being said, I've got friends that did the CA and it wasn't a breeze either from memory.

Cheers
Deepmarine.

 

[Mooze]

Ta guys

My current role would not allow me to gain charter in CFA but I've got the opportunity to change within the organisation if I did wish to gain it. Am lucky in that if I choose to stay with my organisation for a few years I can then work from home in a front office role (pay cut from working with the big boys but more attuned to my lifestyle choices).

I think at this stage I'm leaning more towards CFA but still finishing my accounting masters - plenty of options and plenty of study to grow the mind. I realise CFA is going to be painful (heard it had a 30% pass rate).

How have you guys found that these certs have helped your careers? Have the networks assisted you at all?

 

[boomtown]

I am pushing my gf to get her CA rather than CPA as more prestigious (rightly or wrongly).

I figure she can pick up her CFA later if she shows an interest. Harder to do it the other way around.

 

[alexlee]

CFA is a LOT harder than CA or CPA, certainly when it comes to pass rates. But then they're very different things. It really depends on what you want to do. A CA won't help you if you really want to get into front office. CFA probably won't be as useful as a CA if you want to stay in middle or back office. I have a CA, but I'm quite happy to stay in middle office so a CFA won't help my career much.

The CA has definitely helped me in my career. Not so much the network, but the CA qualification opens a lot of doors if you work in accounting. Or to put it another way, if you don't have a qualification, a lot of jobs simply won't consider you.
Alex

 

[coastymike]

I'll weigh in here as I started in a CA firm and left before I finished the CA course. Then did a masters of commerce and the CPA together. Personally if you are a partner in an accounting firm then CPA or CA doesn't matter. It is your ability to liaise with clients, close deals, bring new deals to the business, analyse complex situations and assist your clients. Income levels for partners of accounting firms range from over $250K for a medium sized practice up to $1M for the Big Four. Personally I think building your own practice where turnover is between $1.5M - $2.5M is quite an achievable goal and should allow you to earn approximately $500K per annum.

 

[chrispy]

I am a CPA member. How it was explained to me when I was studying accounting was that the CPA was more for the technical, hands on approach, eg industry, offices, etc., the CA was more for the professional chartered companies. Whether that is right or wrong I leave for you to decide.

The CPA has been exactly right for me, I have achieved the jobs I have wanted. I added the PMP to mine, taking the project management path and becoming a PMI member and have certainly not regretted that decision.

I have worked overseas. I was approached to go to Geneva, based on my work here in Melbourne. I have been offered many other opportunities, some I have accepted and some refused based on my situation at the time.

I think it comes down to the person and their individual talents, no one path is suitable for every person.

Good luck with making your decision

Chris

 

[Mooze]

Thanks all. I guess my big problem is I've got to figure out where I want to go and where I'd like to end up. I could see myself ending up in many of the roles accessable to CPA/CA or CFA, so just comes down to decision time.

THanks, You've given me much to think on!

 

[Mooze]

An update on this

I'm now studying to undertake my level 1 CFA in December. I've shifted (partially) into a front office role at work, still managing a back office team (yes slight conflict of interest but am managing that on a case by case compliance level).

Actually found out is 48months experience. Whilst I no longer expect to stay with current company that whole time (internal issues), I know that even with just a level 1 behind me I have started on a solid career path. I've even managed to convince hubby that Sydney, Melbourne or an expat posting could be very good.

Thanks all!

 

[mkiopl2]

Awesome, that's sweet!

getting accepted to CPA networks​