CA, CFA, ACCA

Very often I am asked about the difference between these three finance courses: CA (Chartered Accountant), ACCA (Association of Chartered Certified Accountants) and CFA (Chartered Financial Analyst). These may seemingly look alike but in fact, are quite different from each other. Depending on the sub-domain you want to excel in, you should choose one or more from these. Let's now deep dive into each one of them.

CA is a course governed by the ICAI (The Institute of Chartered Accountants of India) with Audits/Accountancy and Taxation being the subjects central to it. Similar to ICAI, the ACCA is based out of the UK; likewise, CPA (Certified Public Accountants) in the US. Simultaneously the world is moving towards a standardised way of Accounting and Audit namely the International Financial Reporting Standards (IFRS). Along the same lines, the US follows GAAP (Generally Accepted Accounting Principles).

As these institutes do acknowledge each others' qualifications they give exemptions to students for various papers if they already have obtained their home institute's degree. Essentially, each country has a set of different tax laws which makes it crucial for any student who wishes to practise in this space to pursue a degree in that particular country. So if you are a CA from India wishing to practise Accounting in the US, we would encourage you to complete CPA. CA is a rigorous finance professional degree having global recognition for exemptions with a practice module consisting of three years of internship which makes it a 4.5 year long rewarding course. On the other hand, ACCA is a relatively easy course for anyone pursuing CA or a moderately easy course if that's your primary degree.

ACCA is a globally recognized professional accounting qualification that provides comprehensive knowledge in accounting, finance, and related areas. To pursue the same, a student must undergo three years of work experience. In addition, ACCA has two advantages, one is its flexibility that the candidates can choose their own pace of study and take the exams at their convenience and the second is the exemption from certain papers of other finance courses.

CFA is a different ball game altogether. It is typically pursued as a second degree by most finance professionals in India. It's a degree by the CFA institute from the US which is a moderate/easy course to pursue if you already have completed CA/CPA/CS/CMA as there is an overlap in terms of a multiplicity of the topics. The CFA course can be commenced in the third year of college which is focused more on Finance and Investments, both debt and equity markets, it does not require any internship, unlike other Finance courses. If cleared at the first shot, the time duration to complete a CFA degree can be less than 2 years. Most of the people I have met possess this as a second degree, so finance people who wish to change their area of practice to Investments/Finance should absolutely pursue this degree.

In a CA course, a student gets thoroughly acquainted with Indian Accounting, Auditing, and rules around taxation along with practical internship experience of working In a CA firm for about 3 years. Whereas, in ACCA which has around 13 papers a student gets to learn about IFRS, Business, Management, and Financial Accounting. The CFA focuses on learning about Investment tools, Assets Valuations,Corporate Finance and Portfolio Management.

A quick tip for anyone to choose between these courses will be your subject matter liking and the country you want to be settled in. While CA has the maximum recognition in India, the ACCA degree can be an add-on for you if you wish to make a career in the same space and render services to a global clientele. CFA should be pursued by anyone looking to make a career in the Investment or Finance domain globally.

The most common job available for a Chartered Accountant will be offered by the Big Firms across the globe in the Accounting/ Auditing, and Taxation domain followed by Finance team members in the corporate sector; for someone who wishes to run their own practice also, CA will be a very useful degree. Someone having a degree from the ACCA will get a job in the International Accounting or GDS department of Big Firms and will have very limited opportunities in a corporate role. CFA on the other hand will get opportunities to work for a fund in Research, Investment Banking, Portfolio Management, and Financial advisory domains.

Overall, the choice of which course to pursue will depend on the individual's interests, time availability, and career goals. It's important to carefully consider each course's requirements, duration, and focus before making a decision.