CA vs CFP: 6 Differences You Must Know Before Making the Big Decision

Whether you’re at the fag end of your undergraduate commerce program or just started, a question that might be haunting you is: ‘What next?’ Although the conventional path for commerce students has been preparing for Chartered Accountant (CA), new fields have emerged in recent years that hold promise for a bright future. One of them is a Certified Financial Planner or CFP.

In this blog, we’re going to discuss in detail the nitty-gritty of CA and CFP and most importantly, the key differences between them.

An Overview Of The CA Course

Wait, does CA even need an introduction? Perhaps after doctor, engineer, and lawyer, CA is a profession worthy of respect in orthodox Indian uncle’s and aunty’s minds.

Well, you might have heard about how difficult it is to crack the CA exams and how your life is going to be just ‘set’ after doing it.

But here are two truths for you: Yes, it is difficult to crack with a selection rate of somewhere around 25%, and life after clearing the exams would depend upon how much you enjoyed the journey itself.

That said, let’s move on to the technicalities of CA.

Chartered Accountants (CAs) are accounting professionals certified by the Institute of Chartered Accountants of India (ICAI) to work in corporate or government offices. Their primary role includes planning, auditing, taxation, and consulting firms on finances. They may also adopt a regulatory role and ensure firms comply with all the laws of the land.

Moreover, a CA can also open many career opportunities in the government sector. For instance, a CA is perfectly qualified to appear in UPSC CSE for Indian Audit and Accounts Service and Group A and B Central Services.

Syllabus of CA

The syllabus of CA is comprehensive and covers a wide range of subjects including account, finance, law, and taxation to prepare the candidates for future roles in corporate finance and auditing.

A brief overview of CA Syllabus is as follows:

1. CA Foundation: It has 4 papers dealing with basic concepts of accounts, mathematics, logical reasoning, and business economics.
2. CA Intermediate: It has 8 papers with 2 groups of 4 papers each.
3. CA Finals: Similarly, it has 8 papers with 2 groups of 4 papers each.

Apart from your parents’ (and relatives’) approval, CA does offer some interesting benefits such as higher-level positions in firms, stable and secure careers, and ample opportunities for career advancement. Today, there is a lot of demand for CAs emerging from the fields of consultancy, corporate training, and coaching.

An Overview Of The CFP Course

CFP course has attracted a lot of attention in recent years due to its promising career opportunities.

A CFP is a globally recognized certification for people exhibiting a deep understanding of the financial planning process, ethical standards, and comprehensive financial management skills. The CFP Board of the USA is a nodal agency setting the criteria for qualifying for CFP certification including its syllabus, examination, and ethical standards. However, it entrusts institutions across the globe to carry out its processes. In India, the Financial Planning Standards Board (FPSB) is responsible for looking after the CFP certification process.

Post CFP, individuals can find ample opportunities in banks, wealth management firms, insurance companies, asset management firms, and so on.

Syllabus of CFP

The syllabus of CFP covers four comprehensive modules with an emphasis on financial planning and advising as opposed to corporate finance or auditing.

Benefits of Pursuing CFP

• It is widely believed that CFP professionals have higher chances of earning more than their non-certified peers as they bring more value to the table.
• Comprehensive course content and hands-on experience get them accustomed to real-world challenges. Thus, their financial advice is often considered to be ‘expert’ in the industry.
• The work opportunities in the country as well as abroad are abundant post-CFP.

6 Key Differences Between CA and CFP

Exam Details

The ICAI conducts CA Exams twice a year (May and November). The candidates are expected to clear all three levels of CA examinations, i.e., CA Foundation, CA Intermediate, and CA Final, along with three years of practical training to earn the title.

On the other hand, the FPSB India conducts CFP examinations all year round. The candidates have two pathways: normal and fast track pathways to earn the prestigious CFP certification.

The normal pathway is for 12th graduates with at least 50% marks, whereas the fast-track pathway is for professionals willing to switch their careers. All in all, a candidate must clear all 5 examinations and have 6,000 hours worth of working experience to earn CFP certification.

Syllabus Subjects

A comprehensive overview of the syllabus of CA is as follows:

Similarly, the syllabus of CFP covers the following topics/modules:

• Investment Planning
• Retirement and Tax Planning
• Risk and Estate Planning
• Integrated Module: Combination of 3 Specialist Certifications and a CFP Certification

Also Read – An In-depth Overview of The CFP Syllabus in 2024

Duration of the Course

You might have heard that clearing the CA exam on the first attempt is nearly impossible. Well, it’s indeed true. Given the comprehensive syllabus and the competitive nature of the examination, it’s difficult to crack. Thus, on average, an aspirant may take around 4-5 years to clear all the exams and the compulsory work experience.

Also, everyone’s journey is unique. Some may clear in a few attempts, whereas others may require multiple attempts, and that is surely going to affect the time taken to earn the credential.

On the other hand, CFP is much shorter in duration compared to CA. On average, it may take 1 to 2 years for candidates to earn this certification. Also, keep in mind that the duration may also depend on the path you have chosen. Generally, professionals with relevant experience find it easier to complete the CFP and earn the title.

Eligibility

The CA Foundation is open for 12th graduates with a minimum of 55% marks secured. However, for CA Intermediate and Finals, you may need a graduate and postgraduate degree with a minimum score of 55% (commerce students) to 60% (non-commerce).

However, for CFP, the minimum qualification is having completed the 12th standard from a recognized board with 55% marks. On the other hand, a bachelor’s degree, a master’s degree, and other relevant working experience may help in landing better opportunities.

Recognition

CA is a very prestigious profession owing to the credibility of ICAI and the competitive nature of the examinations. Thus, corporate firms across the country rely on CAs for tax and auditing, and they command respect and credibility in the company.

On the other hand, CFP is recognized by 27 countries across the globe. Thus, those exploring work opportunities abroad can find a lot of success with CFP. Due to the legitimacy of the CFP Board (USA) and the high ethical standards CFPs are expected to comply with, CFPs command better posts and perks in the industry.

Career Opportunities

The career opportunities for both CAs and CFPs are abundant.

CAs are traditionally spread across a varied field of auditing, taxation, financial analysis, internal audit, forensic accounting, and corporate finance. They can work with startups, MNCs, and PSEs, or start their independent practice. Moreover, a lot of higher-level posts in organizations, such as that of a Finance Director, are often reserved for CAs.

On the other hand, CFP professionals can work as private financial planners to high-net-worth individuals or get associated with a bank, insurance firm, wealth management firm, NGOs, and more. Similarly, since CFPs work towards reaching the financial goals of their clients, the value they bring to the table is high, and so is the pay.

To sum up, both CA and CFP differ in terms of course content, duration, recognition, and career opportunities. However, which is the best choice for you depends upon your strengths, weaknesses, and interests.

Want To Know More About These 2 Courses?

CA vs CFP – Who Should Choose What?

When deciding between CA (Chartered Accountant) and CFP (Certified Financial Planner), the choice often depends on your career goals and interests. Both certifications cater to different professional aspirations and skillsets. Let’s break it down:

Choose CA if

• You want to specialize in taxation, auditing, or corporate finance: CA equips you with expertise in Indian tax laws, audit procedures, and corporate financial management.
• You are interested in high-level roles in Indian firms or starting a practice: CAs are indispensable in India’s finance ecosystem, with opportunities to rise to CFO or Partner positions.
• You have a long-term vision and perseverance: Clearing CA exams requires grit, patience, and consistent effort, but the rewards are worth the grind.
• You aim for stability: A CA qualification opens doors to high-paying, stable careers, especially in India’s traditional finance sector.

Choose CFP if

• You enjoy financial planning and wealth management: CFP focuses on helping individuals and businesses achieve financial goals, including retirement, investment, and estate planning.
• You aim for a globally recognized certification: With CFP’s recognition in 27+ countries, this certification is perfect if you aspire to work in financial hubs like Singapore, Dubai, or the USA.
• You prefer a shorter duration and flexibility: The CFP course can be completed in 1-2 years, offering a faster route to entering the financial planning industry.
• You want to help clients directly: If you love working closely with clients, advising them on investments, insurance, and financial strategies, CFP is a great fit.

Also Read – The Cost of Becoming a Certified Financial Planner (CFP) in India

Challenges for CA and CFP Students

Every dream comes with its own set of hurdles, and pursuing CA or CFP is no exception. Here’s a realistic look at what students face in each path and how to navigate these challenges:

Challenges For CA Aspirants

• Low Pass Rates (~25%): The CA exams are notorious for their low success rates, making them one of the toughest certifications in India.
  • Tip: Focus on conceptual clarity, practice with mock tests, and don’t hesitate to revise multiple times.
• Long Duration: On average, it takes 4-5 years (or longer) to complete the CA program due to its comprehensive syllabus and articleship requirements.
  • Tip: Plan a timeline and stick to it. Break down your syllabus into manageable chunks.
• Balancing Studies with Articleship: The mandatory 3-year practical training requires juggling studies and work, which can be stressful.
  • Tip: Choose a supportive articleship firm and create a study schedule that aligns with your work commitments.

Challenges For CFP Students

• Gaining Work Experience While Studying: CFP certification requires candidates to have practical experience (up to 6,000 hours in the Normal Pathway), which can be challenging for full-time students.
  • Tip: Opt for internships in financial planning or wealth management firms to gain experience while learning.
• Adapting to Global Standards: The CFP curriculum is based on international financial planning standards, which may feel unfamiliar initially.
  • Tip: Use resources like FPSB study guides, attend webinars, and stay updated on global financial trends.
• Keeping Up with Ethical Standards: CFP certification emphasizes ethical practices, requiring candidates to uphold the highest professional integrity.
  • Tip: Familiarize yourself with ethical guidelines and practice incorporating them into case studies or client scenarios.

Also Read – 10 reasons why you should become a certified financial planner

CFP vs CA – Let’s Compare Their Core Competencies

When comparing CA and CFP, their core competencies highlight the strengths and focus areas of each certification. Here’s a quick visual breakdown to help you understand how these two qualifications align with different career paths:

CA vs CFP – Which Course Will Give The Best ROI?

Both CA and CFP are significant investments in terms of time, money, and effort. But how do they compare when it comes to returns? Here’s an in-depth analysis:

ROI For CA Course

• Cost: ₹1.5-2.5 lakhs for the course, including exam fees and resources.
• Starting Salary: ₹6-10 LPA for freshers in India.
• Break-even: 2-3 years post-certification, depending on your career trajectory.
• Long-term Benefits:
  • Opportunity to climb the corporate ladder to roles like CFO or Partner.
  • Job stability and high demand across industries.

ROI For CFP Course

• Cost: ₹50,000-1 lakh for the course and certification.
• Starting Salary: ₹3-7 LPA in India, with higher potential for international roles.
• Break-even: 1-2 years post-certification, especially if you target global wealth management firms.
• Long-term Benefits:
  • Faster entry into the workforce due to the shorter course duration.
  • Flexibility to work globally, with demand in wealth hubs like Singapore and Dubai.

Job Market in India vs. Abroad

Understanding the demand for CAs and CFPs is crucial before deciding which path to pursue. Here’s how the job market compares for both certifications in India and globally.

Job Market In India

For Chartered Accountants (CA):

• Demand Areas: High demand in taxation, auditing, and financial reporting roles. CAs are critical for businesses during tax season, audits, and corporate restructuring.
• Industries Hiring: Startups, MNCs, PSUs, and government roles like Indian Audit and Accounts Services.
• Top Cities: Delhi, Mumbai, Bangalore, and Hyderabad—hubs for financial activities and corporate headquarters.

For Certified Financial Planners (CFP):

• Emerging Demand: With rising financial literacy and increased interest in personal wealth management, CFPs are in demand in wealth management and advisory roles.
• Industries Hiring: Banks, insurance companies, mutual fund firms, and independent wealth advisory practices.
• Top Cities: CFPs are highly sought in metropolitan cities like Mumbai, Bangalore, and Chennai, where there’s a concentration of high-net-worth individuals (HNIs).

Also Read – Here’s What CFP’s Earn In India In Different Job Roles

Job Market Abroad

For Chartered Accountants (CA):

• Recognition: Limited to countries with mutual recognition agreements (e.g., UAE, UK, Australia).
• Roles Abroad: CAs can work as auditors or financial analysts in specific markets, but opportunities are not as widespread compared to CFPs.
• Challenges: Adjusting to international accounting standards like IFRS.

For Certified Financial Planners (CFP):

• Global Reach: Recognized in 27+ countries, including wealth management hubs like Singapore, Dubai, London, and New York.
• High Demand: Financial planning and wealth management professionals are in strong demand, especially in markets where HNIs and global corporations need expert advisors.
• Versatile Roles: Work with global banks, asset management companies, or independently as international financial advisors.

Also Read – What Jobs Can You Get In The UK as a Certified Financial Planner

How Proschool Can Help With CFP Prep

Pursuing CFP certification becomes much more achievable with the right coaching and guidance. Proschool is an official learning partner of FPSB and has helped numerous students excel in their CFP journey. Here’s how Proschool makes a difference:

Why Choose Proschool for CFP?

• 70% Pass Percentage: Proschool has a track record of helping students clear the CFP exam with flying colors.
• 200+ Hours of Offline Coaching: With comprehensive classroom training, Proschool ensures students understand every aspect of the syllabus.
• Learn from Practising CFPs: Classes are led by certified financial planners with real-world experience.
• 2000+ Practice Questions: Extensive practice material to help you ace the exam.
• Save $250 on Study Materials: Proschool’s partnership with FPSB helps you save on official materials.
• Exam Registration Help: Guidance on registering and scheduling exams without any hassle.
• M0 – Foundation Module: Tailored for students from diverse backgrounds, covering retirement, taxation, and other basics.

Additional Benefits Of Choosing Proschool

• Flexible Learning Options: Choose between online or offline classes based on your convenience.
• Placement Support: Assistance with job opportunities in wealth management firms, banks, and insurance companies.

FAQs

CA vs CFP: Which one is easier?

Well, both CA and CFP offer their fair share of challenges to the learners and it all boils down to where your interest lies. If your interest lies in tax and accounts and you’re driven to become a CA, the journey might be difficult but worth it.

CA vs CFP: Which one pays more?

As per AmbitionBox, on average, the salary of a Chartered Accountant in India is around 10 lakhs per annum. On the other hand, a CFP can safely earn between 3 to 7 lakhs per annum in India, depending on a range of factors such as the type of employer, experience, and so on.