Before diving into which combination is better – CPAs with CFA vs MBA, it’s necessary to study each credential in isolation first to understand what they bring to the table. This will help evaluate the strengths of each designation, both individually and in combination.
Contents
Overview of the CPA, CFA and MBA
Chartered Public Accountant (CPA)
A Certified Public Accountant (CPA) is a professional license for accountants that have met the steep education and experience requirements and passed the rigorous CPA exam.
A CPA by itself is not a job title or career path. It’s a professional designation that expands job flexibility and can unlock exponential career growth in the accounting and finance niche.
CPAs are highly sought-after for their industry knowledge, reliability, and expertise. According to the American Institute of Chartered Public Accountants (AICPA), there’s a huge demand for CPAs in public accounting, education, government, and non-profit sectors.
Chartered Financial Analyst (CFA)
The CFA credential is a professional postgraduate certification that is offered globally by the CFA Institute, formerly known as the Association for Investment Management and Research or AIMR.
The CFA designation is awarded to investment and finance professionals who sucessfully pass the CFA exam, which tests a candidates expertise in a range of subjects, including:
- Investment analysis,
- Statistics,
- Derivatives,
- Security analysis,
- Corporate finance,
- Portfolio management, and
- Financial analysis
To earn the CFA Charter, candidates must pass 3 levels of rigorous examination. Each part can take at least 3-4 years to complete.
Since 2012, the growth of CFA charter holders has been a steady 6% annually. As of November 2022, there were about 190,000 CFA charter holders globally.
Master in Business Administration (MBA)
An MBA is a postgraduate degree in business administration. The credential had its roots in the USA in the early 20th century when the country took to industrialization. Suddenly, businesses required professionals trained in leading business management skills and techniques.
MBA programs can cover a wide range of business topics, including:
- Applied statistics,
- Accounting,
- Human resources,
- Finance,
- Managerial economics,
- Business ethics and communication,
- Strategic business and management strategy,
- Operations management, and more.
MBA candidates complete foundational courses touching on several of these subjects, along with other courses in an area of specialization.
In the USA, completing MBA programs can require anywhere from 40-60 credits. This can be much higher than the ~30 credits needed for other master’s programs like
- Master of Finance,
- Master of Economics,
- Master of Accountancy,
- Master of Science in Management, or
- Master of Science in Marketing.
Aside from these specializations, the additional required coursework and broader foundation is often what makes MBA graduates highly sought after in the business world.
With the details of the three out of the way, let’s consider the benefits CPAs can expect by adding either a CFA charter or MBA:
CPAs with a CFA – What are the Benefits?
What can a CPA expect if they add the CFA charter?
First off, there’s no distinct advantage to holding both the CPA license and CFA charter together.
Instead, the biggest benefit the CFA brings for accountants is increased marketability and expanded career options. Having a CFA charter open you up to a range of financial roles that a CPA wouldn’t automatically qualify you for as a CPA.
Most CPAs are content with staying within the accounting field. However, some eventually want to pivot into finance or work in specialized consulting fields like transaction advisory or corporate development roles. Having a CFA charter is a great way to get your foot in the door.
There aren’t distinct roles or jobs that require both credentials, so you’ll likely end up leveraging one more than the other during your career. That doesn’t mean your CPA license would be considered a waste though.
Careers can and often do change, so having a CPA and CFA gives you a massive range of options as you progress through your career. The possibilities are endless and you’ll be highly marketable.
Top Benefits of Having a CFA and CPA
So, what are the biggest benefits of completing the CFA charter as a CPA instead of just pursuing CPA or CFA?
- Deeper expertise: Holding a CFA alongside a CPA will give you a deeper financial skillset, especially if you want to work with investment banks, hedge funds, mutual funds, or financial management roles.
- More career opportunities: A CFA with CPA opens doors to more career opportunities. As a CPA, if you want to switch to investment banking and financial analysis, for example, the fastest route to your goal is to get a CFA charter. This combo adds investment know-how to already existing accounting knowledge and you become a more coveted recruit for financial institutions and banks.
- More dynamic roles: While there aren’t any defined roles that require a CPA and CFA license, having both can help you stand out for more dynamic roles that may require you to manage several different areas of the business.
- Higher pay: The CPA vs CFA salary debate is never ending. CPA and CFA credentials themselves won’t boost your paycheck, but having both credentials will allow you to maximize your earning potential by being eligible for a greater number of roles.
- Eventually, having both credentials and a background in accounting and finance roles may eventually make you a prime candidate to become a Chief Financial Officer, which are generally the highest paying positions in accounting and finance.
CPA with an MBA – How Does it Help?
Earning a CPA license is a huge achievement and will bring tons of career benefits on its own. So what’s the benefit of pairing the CPA with an MBA?
No matter which accounting field you work in, you’re likely to interact with folks outside of finance and accounting, like operations managers, development teams, business owners, etc. Expanding your business knowledge and skill set will only improve your understanding of the businesses and ability to interact with folks at various levels and across departments.
But MBA programs can be costly, both in dollars and the amount of time required to complete the program. Will it be worth it? Like anything else, the answer ultimately depends on your interests and career goals.
If you enjoy auditing or preparing tax returns then an MBA may not add a ton of value to your career. On the other hand, if you want to progress into corporate management role or pivot to another field like data analytics, FP&A, or management consulting, then an MBA may be the key to unlocking those doors.
Why the CPA with MBA pathway
CPAs with an MBA will be particularly well suited for financial management roles, or branch into other areas like operations, logistics, and marketing, or emerging fields like data science, AI and machine learning, etc. The attention to detail required to become a CPA will serve you throughout your career, and your MBA program is no different.
By combining your accounting skills with the education that comes with an MBA program, you’ll have a much better chance to shift your career to a field or sector outside of accounting. By tailoring your MBA program and choosing a specialist track in say, marketing or business management, you’ll be able to demonstrate a much more diverse skillset than if you were to only hold the CPA license on its own.
Job prospects of CPA with MBA
The CPA and MBA combination brings expanded career choices, particularly management and leadership positions. CPAs with an MBA can work in any sector or field, from small businesses to large multinational corporations. Even reaching the C-suite is a very achievable goal. If you pair your CPA with an MBA, you’ll have the flexibility to branch out into management roles in the future.
The most common path for CPAs with an MBA is to pursue financial management roles and take on positions such as FP&A manager, Director of Finance, Director of Corporate Development, and even CFO.
Each of these positions typically come with significant responsibilities and lucrative pay packages, and skilled managers with experience in these roles are highly sought after.
CPA vs CFA vs MBA – How Do They Stack Up?
Let us check now the different variables of CPA, CFA, and MBA
Career Path
- CPA: Accountant, Controller, Financial Manager, CFO, Partner (accounting firm)
- CFA: Investment Analyst, Portfolio Manager, Strategist, Wealth Manager
- MBA: Business Manager, Portfolio Manager, Financial Analyst, Strategist, Consultant
Areas of Focus
- CPA: Auditing, Business Concepts, Financial Accounting, Taxes and Regulations
- CFA: Investment Tools and Valuing Assets
- MBA: Broad Range of Business Concepts
Education Requirements
- CPA: Bachelor’s degree, 150 credit hours, and passing 4 exams
- CFA: 3 exams and one of the following stipulations – Bachelor’s degree, be within 23 months of graduation from the time you sit for the Level 1 exam, or 4,000 hours of full-time work experience and university education accrued over 36 months.
- MBA: Master’s degree over 2-3 years.
Typical Cost of the Program
- CPA: Registration and Exam Fees: $1,200 – $1,500, CPA Review Courses: $1,000 – $3,500
- CPA: Registration and Exam Fees: ~$3,000, CFA Review Courses: $500 – $2,500
- MBA: Tuition and fees – $40,000 – $125,000
Difficulty (Pass Rates)
- CPA: 53% – 64%
- CFA: 38% for Level 1,
- MBA: Variable, varies from university to university
Bottom Line on the CFA vs MBA Debate
Regardless of which path you choose, pairing a CPA license with either a CFA charter or MBA is sure to boost your career.
Both the CFA and an MBA require huge commitments though, so you should start by considering where you want your career to go.
Finally, a quick roundup of the two combos that are discussed in this post.
CPA with CFA
Both are considered the gold standard designations in accounting and finance, respectively, and there’s some overlap in the disciplines and skills required for each. Having both designations will qualify you for the broadest range of roles in accounting and finance and choose your ideal path.
You can be a research analyst in an investment firm, or perform transaction advisory work with a CPA firm. The CPA designation will help you understand accounting concepts and how various decisions may impact a company’s financial reporting and/or tax results while the CFA credential will help you in the areas of asset valuation and corporate finance.
CPA with MBA
If you want to expand beyond the accounting niche and work in other areas of the business, particularly non-financial ones, the CPA with MBA combo will help a lot. The CPA certification will provide a strong foundation in financial concepts, while the MBA will expand your reach and expertise to other areas of the business. You’ll be permitted to waive two graduate-level accounting courses in the MBA program. With the CFA and MBA combinations, your career path will primarily be in areas related to finance and accounting but in higher job responsibilities.
Now that we’ve broken down each combination, it’s up to you to take your pick.
