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ACCA vs CFA vs US CPA (2022) | Which course is better? (Great options after 12th Commerce) - YouTube
Channel: Zell Education
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Hey guys,
I'm sure all of you'll have seen people who
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have tons and tons of degrees besides their
names.
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So, if they are from the field of Commerce,
they will have their Bachelors, Chartered
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accounting, Company Secretary, they will have
M.Com, they will have LLB and you see this
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name and it has more credentials then you
can possibly imagine a single person having.
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In the same way, when you are growing and
trying to figure out academically what should
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your credentials be, most of us remain confused.
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So, what what happens to those ambitious but
confused people, you will end up piling up
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so many degrees together, they might be right,
they might be wrong but you feel as long as
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your studying and in fact I know parents who
say that as long as my son or my daughter
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is studying and there are tons of degrees
is all gonna be ok.
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Now, what is the right answer?
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Should you collect degrees and hope some of
them pay off, that's what we're gonna talk
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about in this video.
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We are going to help you distinguish between
three qualifications in the field of finance
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and accounting, which are ACCA, CFA and CPA.
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So, first of all please understand that when
you're thinking of pursuing something, maybe
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your first-degree, first qualification you
decide, might be a fluke.
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It might be because somebody you'll know close
to you is pursuing it, somebody, some teacher
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told you, some relative has suggested it and
you do it, its fine.
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One qualification like that is fine, the second
one always has to be calculated based on the
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the the the profile, the dream that you have
where you want to reach, figure out backwards
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what you need to reach there after your first
qualification.
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The chances that your first qualification
will lead you to your dream career is almost
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impossible so you will need something in the
middle.
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That's how you figure out the next qualification
and the one after that.
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Don't just do random qualifications and combine
them all.
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Now, with that being said, let me get into
the first qualification which I want to discuss
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with you all, which is ACCA.
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So what is ACCA right, its Global CA.
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By that I mean it covers the same kind of
subjects that CA covers.
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Which are essentially Accounting, Costing,
Financial Management, Audit, Tax and ACCA
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also has a tiny little business paper at the
highest level, it's like a mini-MBA.
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So, this is what you'll become once you cover
ACCA, you become an expert in the field of
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finance and account, accounting.
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Second, CFA, CFA is a specialization in the
field of finance and investment management.
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So, as ACCA covers everything in finance and
accounts, CFA covers much more in depth in
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the field of finance.
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So if you want to get into specifically in
that niche and as I explain later in the video
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you want to get into learning about the financial
markets, you want to get into investment banking
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and hedge funds, CFA is the right course.
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And finally, CPA.
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Simplest way to describe CPA, CPA is the Us
CA.
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How we have Indian CA's here, CPA is the US
CA.
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So again CPA's cover the same thing that ACCA
or CA's cover.
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Right, so guys before I get into the details
of each of the three courses, please do subscribe,
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we'll be having many videos relating to many
videos related to different finance courses
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and case studies, which should help you not
only in your academic journey but also in
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your career.
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So let me start with the eligibility criteria,
Are you eligible for all of the three courses
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before you decide.
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I'm going to keep it short and simple, for
ACCA all you need is completing grade 10.
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While most of the students technically start
post grade 12, the eligibility criteria for
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ACCA is as long as you have to, as long as
you've passed class 10.
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Coming to CFA, you need to be in your final
year of graduation.
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That's it.
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So you can start studying actually in your
second to last year of graduation for CFA
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level 1.
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And coming to CPA, for CPA you need 12+4 year's
of academics completed, which means if you
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are a Commerce student you have to complete
your B.Com and then at least complete one
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year of M.Com before you're eligible, and
if you're into engineering for example, you
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can complete, you can finish your Engineering
which is 4 years of graduation and start CPA.
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So now, now that you know which courses you
are eligible for, the most common thing that
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you might want to know is that What are the
exam structure?
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What is the exam structure like?
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How do I give these exams?
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So for ACCA, the exam structure is split essentially
into 13 exams, 1-3 split into 3 levels.
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Knowledge, Skill and Professional.
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You give these exams one at a time or multiple
and you will be done with the entire qualification.
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Coming to CFA, CFA, the exam structure is
split into 3 levels, level 1, level 2 and
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level 3.
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All the 3 levels have 10 subjects, the same
10 subject across and only difference between
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the three levels is that the weightages of
each subject are different.
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So some subjects are tested more in level
1, less in level 2 and least in level 3 and
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vice versa and when it comes to CPA, CPA has
only 4 exams, that's it.
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You give these 4 exams, you can give them
within a span of 18 months, that's the max.
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You can either give it all at one or you spread
it across and that's it, you will have completed
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US CPA.
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When it comes to the passing rate for all
of the three right, they are actually quite
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similar especially when you compare it to
the Indian CA.
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Indian CA, of course everybody knows now its
come close to 10% but for the longest time
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it used to be in single digits.
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Unlike a CA, whether you take ACCA, CFA or
CPA, all three of them, the passing rate ranges
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between 40 to 50% on an average, which means
out of 10 students who give the exam, 4 or
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5 complete each of these.
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That should give you an indication that clearing
these papers doesn't necessarily make it easy,
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but it means that each of these courses are
quite flexible in nature giving you the ability
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to clear them more easily than some of the
other qualifications you might have known
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about.
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Now a lot of people care about the duration
and the time it takes to complete any of the
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qualification before helping them make a decision.
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So, keeping it simple, ACCA will take anywhere
between two to three years if you start from
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scratch.
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ACCA as you will see eventually gives you
exemptions based on your academic background,
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which means if you have certain exemption
ACCA, lets say level 1 of ACCA you don't have
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to complete because you are exempted.
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Automatically the duration from two to three
years will start reducing.
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So, on an average to start, to complete ACCA
from start to end is three years but based
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on exemptions you can reduce it.
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The fastest you can complete ACCA is literally
18 months, now that that's with respect to
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ACCA.
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Coming to CFA, CFA again similarly to ACCA
takes on average two to three years.
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From 2021, the exams of CFA have become quarterly
versus half yearly in the past.
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This gives you a chance to complete CFA quicker
than what it would have taken in the past.
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That being said still, we've seen that the
average of students, the average duration
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for CFA for students is between two to three
years.
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Lastly coming to CPA, like I said CPA the
max you do have to complete is around 18 months
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but you can finish it anyway between six months
to 1 year as well.
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And now the scope of all of these three courses
across India and the world.
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So just before I get into the scope, we've
already made a detailed video on ACCA and
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CFA where we describe their opportunities
in India and well as Internationally in detail.
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So if you'd like to know about any of these,
please check out the videos.
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That being said, for ACCA, the scope in India
has been increasing drastically over the last
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few years.
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So ACCA's in India are being hired in many
of these multinationals such as the big four,
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KPMG, Deloitte, PWC, EY, companies such as
Grant Thornton, BDO all these companies do
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hire ACCA's at similar packages to that of
CA's.
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When it comes to International opportunities
for ACCA, being recognised across the world,
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having job portal called accacareers.com,
ACCA actually has ensured that there are listings
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of job vacancies from different cities in
the world so if you wanna go to London, you
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go to this portal, search for the job opportunities
in London, you'll get a list, you can literally
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apply sitting at home right now.
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That's the scope of ACCA, the kind of profiles
that students get into after ACCA would be
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more from the advisory sides, there is accounting
advisory, there is risk advisory, there is
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valuations and mergers and acquisitions, a
lot of in depth options that you guys have.
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You can get into auditing as well, so there
is statutory audit, one of the upcoming fields
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is forensic audit.
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I have people who've completed ACCA hired
in each and every one of these designations
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in India, so that's the scope of ACCA.
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Now, when it comes to CFA, CFA is an extremely
popular course in India as well as globally.
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Being especially a US-based course, it has
recognition everywhere.
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So in India, if you look at Indian companies,
companies such as Motilal Oswal or Anand Rathi
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or any of the banks, right look at ICICI Securities,
look at Kotak Mahindra securities, HDFC securities,
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IIFL, all these kind of companies are hiring
CFA's.
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And the, the good part about CFA is, you can
start working directly from level 1.
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So, you literally work and study simultaneously
and get your career the right start.
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When it comes to international kind of companies
that CFA's get hired in, look at companies
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such as JP Morgan, Goldman Sachs, Morgan Stanley,
Citibank, these are the kind of companies
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which are into corporate finance, into banking,
into hedge funds, investment banking as I've
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always been saying, these are the companies
that you get hired in, if you pursue CFA in
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India.
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Same kind of scope it has in other countries.
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And when it comes to CPA, now CPA again being
US CA, having up, having its base in US, CPA's
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are required across the world, especially
where US companies are based.
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India being one of the best places that US
companies like to outsource their finance
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and accounting, there is a lot of scope for
CPA in India.
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Besides the general accounting firms in India,
CPA's are also hired in companies such as
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Amazon, such as Apple, Capgemini, Cognizant.
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There are there is a list of companies right
you can take any American company essentially
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right, take Google, Facebook, whichever company
outsources their financial accounting to India,
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you have a chance of getting hired as a CPA
here.
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Now with that being said guys, one thing is,
when it comes to CPA, I have very rarely seen,
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students pursuing CPA in isolation.
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Most of the times they are already a chartered,
you already have some kind of a background
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and then you pursue CPA to add a qualification
or to learn something more, or to your profile
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not as your primary course, doesn't mean that
you can't, but this is what we've generally
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seen.
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CFA there are many students who pursue it
in isolation, but again, you because you're
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start a little later, you start in your final
year of graduation, at the earliest, you would
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have ideally started pursuing something, you
have CA in mind, MBA in mind, so there is
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some, again, a chance that you will pursue
simultaneously with something else.
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And ACCA, you have the ability to do it in
isolation and then pick up other options like
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CFA, like CPA, like MBA or something totally
else, whatever is in your mind.
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So that's how, the scope of all these three
courses are in India as well as overseas.
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And now besides the effort and the time, the
other investment, the monetary investment
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in each of these.
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So with ACCA, you can complete the entire
qualification between 3 and half to 4 lakhs.
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That being said, remember this 3 and a half
to 4 lakhs is spread over the entire duration.
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Which means if it takes 3 years to spend 4
lakhs, to complete it, per year its around
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1.33 lakhs.
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That the average.
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Do remember that if you are exempted from
certain levels in ACCA not only will the duration
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but also the fees will reduce.
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Coming to CFA, CFA to complete all the three
levels on an average is again 3
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to 3 and half lakhs, it can be a little different
if you have to repeat any one exam because
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the exam fees are a little expensive with
respect to CFA.
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But that's about it, so again CFA you'll take
3 3 and a half lakhs, spread over three years
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so on an average per year is about a lakh
rupees.
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Finally, CPA.
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CPA there is a catch, on an average as always,
CPA will take you around 3 and a half to 4
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lakhs to complete.
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Now, earlier, people had to go US or Dubai
to give the CPA exam because there were no
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centres in India.
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In the pandemic, CPA has introduced centres
in 8 cities in India but it's not for sure
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that this will continue post March 2021.
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However, the problem is that earlier in the
3 and a half to 4 lakhs to complete CPA, you
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had to travel to US, to Dubai and that would
cost you some something in the form of flight
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and accommodation.
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When you eliminate that because of India,
one other issue comes up that the exam fees
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is almost three times that in India compared
to Dubai or US.
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So, when I look at this, the overall fees
for CPA whether you give it in India, Dubai
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or US will come close to 3 and a half to 4
lakhs.
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There's one more catch to CPA, unlike CFA
and ACCA, which take longer to complete, you
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can finish CPA in a year, so, the outflow
is a little heavy, because in one year you've
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got to shell out the almost entire 4 lakhs
at once.
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If that is comfortable with you, there's no
issue with CPA fees.
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These fee's for ACCA, CFA and CPA in this,
when I talk about the average fees, I'm covering
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all elements of the fees.
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I'm talking about the exam fees of all the
courses, the registration, if there are any
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training fees, the study material and each
course has their individual additional fees,
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I've covered it all.
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So this average gives you a much clearer perspective
of the overall outflow versus any individual
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element of the costing.
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So guys, that was our comparison of the three
sort of, what people feel are similar qualifications,
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ACCA, CFA and CPA.
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If anything in this video has helped you guys
make some form of decision for yourself or
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you know somebody who is still confused please
do share this video with them.
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If we've left anything which you would like
answered, leave them in the comments we'll
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make sure that we get back to you.
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Thank you so much.
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So guys wait, before you leave, I'm gonna
leave you all with the same old, do you know
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what the difference between you and a successful
version of you is?
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The successful version of you would not miss
out on subscribing to this channel today!
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