ACCA vs CFA: Insights from Professionals Who Pursued Both

Introduction:

The finance industry offers a number of qualifications, with CPA (665k members), ACCA (241k members), and CFA (190k members) being among the most popular. This abundance of options can often leave young finance professionals unsure of where to start and whether pursuing multiple certifications is worth it. In this article, we won't focus on the technical differences between ACCA and CFA, as that information is readily available online. Instead, we'll delve into the personal thoughts and suggestions of professionals who have pursued both qualifications.

Methodology:

For this article, I conducted interviews with four professionals who wished to remain anonymous. Here's a brief profile of each professional:

P1: A financial analyst who became an ACCA member and later obtained the CFA charter.

P2: A CFO who became an ACCA member and subsequently acquired the CFA charter.

P3: A Big-4 auditor who became an ACCA member and passed 2/3 CFA exams.

P4: An investment analyst who became a CFA charterholder and later became an ACCA member.

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Question 1: Why did you decide to pursue the second qualification?

P1: Initially, I was only aware of the CAP/CIPA and ACCA certifications. However, as I gained work experience, I realized that there were more lucrative opportunities beyond accounting and auditing and, respectively, other qualifications. In addition to expanding my knowledge, I found that pursuing the CFA would be beneficial for my personal finance decisions.

P2: I pursued the CFA for several reasons, including continuous education, personal challenge, the opportunity for geographical diversification (opening doors to Western countries), long-term self-investment, and career opportunities diversification.

P3: My decision was driven by intellectual interest, a new challenge, personal finance goals (trading), and a desire to gain expertise in financial instruments.

P4: I wanted to gain deeper insights into accounting and business analysis. In addition, it was sponsored by my employer (an auditing firm) and was necessary to progress within the firm. I thought that ACCA was generally a useful qualification, that would be helpful for my personal development and for keeping me busy. I also enjoy personal challenges.

Question 2: Name 3 advantages of CFA.

P1: The CFA offers a larger salary potential, a broader financial outlook with more specialties, and is particularly valuable for personal finance decision-making.

P2: Advantages of the CFA include geographical diversification, career diversification, and a “quality mark” that demonstrates to employers the candidate’s high level of purposefulness, intelligence, dedication, and depth of knowledge in the financial industry.

P3: The CFA is better suited for specific industries such as investment banking and wealth management. It places more emphasis on ethics and is considered more valuable in the market due to its challenging nature. Moreover, as one professor once said: “The more you know about the derivatives, the more you know”.

P4: The CFA covers a wider range of subjects, requires more analytical thinking, and is composed of three exams. It is particularly beneficial for finance careers beyond accounting, such as investments. CFA is better aligned with current industry needs since the curriculum is updated every year.

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Question 3: Name 3 advantages of ACCA

P1: ACCA is objectively easier to pass - for example, the ACCA curriculum is approximately 6,500 pages long and is divided into 13 separate exams, while CFA introduces ~10,000 pages of material and is divided only into 3 exams. ACCA provides better accounting knowledge and ensures job security due to the consistent demand for professionals specializing in ACCA's main areas such as auditing, accounting, taxation, and financial management.

P2: ACCA provides fundamental knowledge, i.e. the basis for your finance career. In the CIS region, ACCA is more relevant than CFA because the financial markets are underdeveloped. ACCA allows for easy transitions between audit and industry roles.

P3: ACCA offers a wider range of subjects, more comprehensive coverage of audit and taxation, and in-depth knowledge of accounting and IFRS. It also covers financial management topics in greater detail, such as cash flow statement structure and analysis.

P4: If your career goals lie in auditing or accounting, ACCA holds more value. ACCA's modular structure allows you to focus on in-depth learning of each subject. Additionally, the CFA's multiple-choice exam format in levels 1 and 2, which leaves room for an educated guess, may be seen as a disadvantage compared to ACCA's written response format.

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Question 4: Would you suggest pursuing both qualifications or sticking to one?

P1: If financial rewards are your priority, choose the CFA. If stability is more important, opt for ACCA. If you have enough time and resources, pursuing both qualifications will be beneficial.

P2: Pursuing both certifications is not recommended. In most cases, ACCA alone should suffice. The CFA acts as a supplementary certificate, similar to an MBA, enabling a deeper understanding of specific finance areas. From my experience, the knowledge gained from ACCA and auditing experience has met the job requirements. In my opinion, practical industry experience plays a more important role, and success can be achieved even without a certificate.

However, if you aim for a career in investment banking, the CFA is often considered a prerequisite due to its specialized focus. Additionally, having at least one of these certificates is desirable today, since many finance vacancies now require you to have one.

P3: Having both qualifications is not necessary. It's best to choose one based on your professional path. I am pursuing CFA to support my continuous professional development.

P4: While it's worth pursuing both qualifications if possible, I personally enjoyed CFA more.

I hope this article was useful to you, and helped you find answers to your questions!

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