CFP® vs CPA: Which Career Path is Best for You?

Bryce Welker
·11 min read

AI was used in the creation of this article. The article was reviewed, fact-checked and edited by a content review team. We might earn a commission if you make a purchase through one of the links. McClatchy newsrooms were not involved in the creation of this content.

Choosing between a Certified Financial Planner (CFP®) and Certified Public Accountant (CPA) certification is a defining moment for finance professionals, each leading to distinct avenues within the financial industry.

But which certification is right for you?

The CPA profession is vast, with over 478,000 CPA professionals in the United States, and presents a rigorous challenge, with about half of candidates passing the CPA exam. In contrast, the CFP® certification caters to those interested in personal financial planning.

This guide dives into each certification, helping you align your career aspirations with the right professional designation, setting the stage for a fulfilling career in finance.

Key Takeaways

  • Career Focus: CFP® certification is ideal for those interested in personal financial planning, including retirement planning, tax advice, and estate planning, aiming to help individuals achieve their financial goals. CPA certification suits professionals focused on financial accounting, auditing, tax preparation, and ensuring compliance for businesses and organizations.

  • Certification Requirements: CFP® candidates must complete a CFP Board registered education program, hold a bachelor’s degree, pass the CFP® exam, and fulfill a professional experience requirement. CPA candidates need 150 semester hours of education, pass the Uniform CPA Examination, and meet specific experience requirements under a licensed CPA.

  • Career Opportunities: CFP® professionals often work as financial advisors or wealth management advisors, providing comprehensive financial planning services to individuals. CPAs typically find roles in public accounting, corporate finance, government, and non-profit organizations, focusing on accounting, auditing, and tax services.

  • Exam Content and Difficulty: The CFP® exam covers comprehensive financial planning and requires candidates to apply knowledge in real-life scenarios. The CPA exam tests a broad range of accounting, tax, and business knowledge, with each section focusing on different domains of accounting expertise.

  • Investment in Certification: Both certifications require a significant investment of time and money, with CFP® candidates focusing on financial planning education and CPA candidates often pursuing a master’s degree to meet education requirements. Exam fees, preparation materials, and educational programs contribute to the total cost for both paths.

CFP® vs CPA General Requirements

CFP® Certification Requirements

The CFP® Board oversees the CFP® certification, a prestigious credential in the financial planning sector. Personal finance experts are passionate about offering services in retirement planning, investment advice, risk management, tax advice, and estate planning.

CFP® professionals are equipped to provide comprehensive financial planning services to individuals, helping them achieve their financial goals through meticulous planning and strategic asset allocation.

To earn the CFP® designation, candidates must complete a rigorous training program approved by the CFP® Board. They must all hold at least a bachelor’s degree and pass the comprehensive CFP® exam. This exam covers real-life situations and tests a candidate’s ability to apply financial planning knowledge effectively.

Additionally, candidates must fulfill a 6,000-hour professional experience requirement, ensuring they have practical experience in financial planning.

The CFP® certification emphasizes ethical and professional standards, requiring certificants to adhere to the fiduciary duty of acting in the best interest of their clients. This commitment to ethics is a cornerstone of the CFP® designation, distinguishing CFP® professionals in the financial services industry.

CPA Certification Requirements

The CPA license, governed by the American Institute of Certified Public Accountants (AICPA) and state boards of accountancy, is the gold standard for professionals in accounting and financial reporting. CPAs specialize in auditing, tax preparation, financial accounting, and assurance services, playing a crucial role in the financial integrity and compliance of businesses and organizations.

CPA candidates are required to complete specific educational requirements, including a minimum of 150 semester hours of education, often culminating in a master’s degree to meet the credit hour requirement. Following their education, candidates must pass the Uniform CPA Examination, a comprehensive test that covers financial accounting and reporting, auditing, regulation, and business environment concepts.

In addition to passing the CPA exams, candidates must meet professional experience requirements, which typically include at least one year of accounting work under the supervision of a licensed CPA. This apprenticeship experience is crucial for developing the practical skills necessary for a successful career in accounting. In some states, passing an ethics exam is also required.

CFP® vs CPA Career Paths and Opportunities

For CFP® Professionals

Certified Financial Planners™ are renowned for their ability to offer personalized financial advice to individuals, focusing on achieving long-term financial goals through comprehensive financial planning. CFP® professionals often work with high-net-worth individuals, providing asset allocation tax advice and retirement savings strategies. They are well-positioned for careers in wealth management firms, financial advisory services, and independent financial planners.

The CFP® designation’s focus on ethical financial planning and the fiduciary duty to clients makes it an attractive credential for those looking to impact individual clients’ financial well-being positively.

For CPAs

Certified Public Accountants are indispensable in the realm of financial accounting, tax, and audit. CPAs offer a range of services, from public accounting and assurance services to tax filing and estate planning audits. They often hold pivotal roles in corporate finance, government agencies, and public accounting firms, ensuring compliance with financial regulations, managing financial reporting, and providing strategic tax advice.

Exam Content, Difficulty, and Pass Rates

CFP® Exam

The CFP® exam stands as a rigorous assessment designed to measure a candidate’s proficiency in applying financial planning knowledge to real-life scenarios. The exam is administered in a computer-based format, consisting of 170 multiple-choice questions that candidates must complete within a 6-hour timeframe, divided into two 3-hour sessions with a scheduled break in between.

The exam’s comprehensive nature and the breadth of topics covered contribute to its challenging reputation. Historically, the pass rate has been 60–70% for the CFP® exam, which underscores its difficulty.

CPA Exam

The CPA exam’s structure is thoughtfully designed to match the demands of the accounting profession, consisting of three core sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG). These sections ensure foundational knowledge across essential accounting disciplines. Additionally, candidates can choose from three specialized sections—Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP)—to demonstrate expertise in specific areas.

The exam is delivered in a computer-based format, incorporating multiple-choice questions, task-based simulations, and written communication tasks, depending on the section. This format assesses both practical skills and theoretical understanding, preparing candidates for a variety of accounting roles. The inclusion of specialized sections allows for a personalized certification path, aligning with individual career goals and reflecting the profession’s dynamic nature.

Historically, the CPA exam has proven challenging, with only about half of the candidates passing. This statistic underscores the exam’s rigorous standards and the comprehensive preparation required to succeed, ensuring that those who achieve certification are well-equipped for the complexities of the accounting field.

Financial and Time Investment

The journey to obtaining CFP® or CPA certifications demands both a significant commitment of time and financial resources, with each path having its own set of requirements and costs.

CFP® Certification

For those pursuing the CFP® certification, the process involves comprehensive education and exam preparation. Candidates often need to complete a bachelor’s degree in a related field as part of the education requirements. To prepare for the CFP® exam, candidates typically invest up to 1,000 hours of study to ensure a thorough understanding of the material.

The cost of obtaining the CFP® certification includes exam fees, with a standard registration rate of $925. An early bird rate of $825 is available until six weeks before the registration deadline, offering a discount for early registrants. A late registration rate of $1,025 applies for those registering in the final week. Additional costs may include educational program fees and expenses for study materials or CFP® prep courses.

CPA Certification

Similarly, achieving CPA certification requires a substantial investment in terms of both time and finances. Educational prerequisites often include obtaining a master’s degree to fulfill the 150 semester-hour requirement. CPA candidates typically dedicate around 300 hours of study per exam section to prepare adequately. The cost structure for the CPA exam varies by state, but generally, candidates can expect to pay $344.80 per exam section and a $75 application fee. These costs reflect the exam fees alone, with additional expenses likely for education, CPA review courses, and study materials.

First-Hand Account Testimonials

When navigating the choice between pursuing a CFP® designation, a CPA certification, or both, individuals often seek insights from those with firsthand experience.

In a Reddit thread, an individual contemplating their path forward shared, “I am looking to get the CFP® designation coming up... I think it would take me a little longer for the CPA + CFP® since the CPA is a beast, but I would have two highly recognizable designations.” With a background in Econ/Accounting, an MBA in finance, and several financial series certifications, they find themselves at a crossroads, weighing the allure of CFP® material against the rigorous CPA certification process.

Contributors to the discussion offer a range of perspectives. Socialsamsu, holding CPA, MBA, and CFP® designations, emphasized the value of the CPA: “I can tell you that my CPA has opened up many doors though (including the acquisition of this RIA acquisition)... a CPA designation carries way more weight than my MBA, took less time to complete and was a fraction of the cost.”

GalianoGirl, who chose the CFP® path, finds fulfillment in client-facing roles, stating, “I was going to do both designations, but realized that I was more suited to CFP® work. I do taxes for clients, but only relatively simple returns. I have no interest in doing any additional accounting.”

One user, a CPA planning to sit for the CFP® exam, shared, “I’m biased because I am a CPA who is sitting in November for the CFP, but I already do have a Series 7/66/24....do both. Well worth your time.”

These direct quotes from individuals who have faced similar decisions illuminate the varied paths within the financial industry. The choice between CPA, CFP®, or both certifications hinges on personal career goals, the type of work one aspires to do, and the strategic advantage each designation offers.

Making the Decision: CFP® vs CPA

Making the decision between pursuing a CFP® certification and a CPA designation can significantly influence your career trajectory in the finance industry. Here’s a simplified “If, then” setup to guide your decision based on your professional aspirations and interests:

  • If you want to... directly impact individuals’ financial health and assist them in achieving their personal financial goals through comprehensive planning,

  • Then you should pursue... CFP® certification. This path is ideal for those passionate about personal financial planning, including retirement, tax, estate planning, and more, offering the satisfaction of making a tangible difference in clients’ lives.

  • If you are interested in... the complexities of financial accounting, auditing, and tax and aim to contribute significantly to the financial reporting and compliance of businesses,

  • Then you should pursue... CPA designation. This route is suited for those drawn to the technical side of accounting and finance, focusing on maintaining the financial integrity of organizations and ensuring compliance with financial regulations.

  • If you seek to... blend the expertise of financial planning with the rigor of accounting and compliance, providing a comprehensive suite of services to clients, or enhancing your versatility in the finance sector,

  • Then, you should consider pursuing... both CFP® and CPA designations. Holding both certifications amplifies your marketability, broadens your career opportunities, and positions you as a versatile professional capable of addressing a wide range of financial needs.

Conclusion

Both the CFP® and CPA designations offer rewarding career paths in the financial industry, each with its own set of opportunities, challenges, and rewards. Whether you choose to pursue the CFP® certification or the CPA license, you will be embarking on a career that requires dedication, ethical standards, and a commitment to serving the needs of clients or the public. By considering your interests, career goals, and the impact you wish to have, you can make an informed decision that aligns with your professional aspirations in the finance industry.

FAQ

What are the educational requirements for CFP® and CPA certifications?

CFP® candidates must have a bachelor’s degree and complete a CFP® Board-registered education program. CPA candidates need 150 semester hours of education, often requiring a master’s degree.

How much does it cost to pursue CFP® or CPA certifications?

The total cost varies based on educational expenses, exam fees, and preparation materials. CFP® certification costs include exam fees and education program fees, while CPA certification costs encompass exam fees, education expenses, and review courses.

What are the pass rates for the CFP® and CPA exams?

Pass rates for both exams reflect their challenging nature. The CFP® exam has a historical pass rate that underscores the rigorous preparation required, while the CPA exam pass rates vary by section.

Can I pursue both CFP® and CPA certifications?

Yes, pursuing both certifications is possible and can provide a competitive advantage, offering a broad and deep skill set in financial planning and accounting. However, it requires a significant commitment to education and professional development.

What are the potential downsides of pursuing either the CFP® or CPA certification?

Pursuing the CFP® or CPA certification requires a significant investment of time, money, and effort, including rigorous educational and exam requirements. For CFP® candidates, the challenge lies in mastering a broad range of financial planning topics, while CPA candidates face the daunting task of passing a series of difficult exams covering various accounting disciplines. Additionally, both certifications demand ongoing education and adherence to ethical standards, which can be both time-consuming and costly.