How Does CFP® Certification Complement My CPA? (2024)

FAQs

How Does CFP® Certification Complement My CPA? ›

Thousands of CFP® professionals have indicated they also hold a CPA license. Being able to place both credentials after your name isn't just attractive to clients. It also shows employers your high level of commitment to serving clients by offering expertise and specialization within your profession.

Currently, 7,601 CPAs hold the CFP certification, making up slightly less than 12% of the total number of CFPs in the country, according to the Certified Financial Planner Board of Standards Inc. Another 5,065 hold the PFS designation.

Comparatively, CFP is easier than CPA. The historical pass rate has been above 60%, which indicates that the tests are of a difficulty level that is considered to be moderate. Within the testing period from October 31 to November 7, a grand total of 3,386 individuals sat for the CFP® Certification Exam.

Earning your CERTIFIED FINANCIAL PLANNER® certification is the most beneficial step you can take to accelerate your career and better serve your clients. As a CFP® professional, you'll enjoy a rewarding, in-demand career while helping people achieve their financial dreams.

While there is some overlap between the two credentials, they have different focus areas. A CFP® professional focuses on helping individuals with their personal investments, whereas a CFA® charter holder generally specializes in selecting investments for institutional investors.

Are you a CPA? If so, you can take advantage of the Accelerated Path to CFP® certification. You will be eligible to sit for the CFP® examination immediately after completing a Capstone course through a CFP Board Registered Program.

Financial planners are in high demand.

The CFP® Certification Examination is equally as challenging as the CFA® exams, the CPA® exam, and bar exam. Every year, thousands of candidates go through this rigorous certification testing, but not everyone makes it to the finish line.

CFPs typically work with individuals or families to support their financial goals. Whether it's investing or retirement planning, they can look at a broad range of opportunities and strategies to help you build your wealth. On the other hand, a CPA will often work for corporations or business owners.

If you are 10 weeks away from the CFP review class starting and you need about 100-125 hours to finish the pre-study materials, then you need to average 10-12 hours per week leading up to the review. That means you'll need to study for about 2.5 – 3 months (100hrs/10hrs per week) before attending the review class.

How prestigious is CFP? ›

For 50 years, CERTIFIED FINANCIAL PLANNER® certification has been the standard of excellence for financial planners. CFP® professionals have met extensive training and experience requirements, and commit to CFP Board's ethical standards that require them to put their clients' interests first.

– The CFA Institute says a CFA charter holder can earn between $126,000 and $177,000. – Comparably.com data from Feb. 2023 shows the average CFP® salary in the U.S. is $121,099. The total range is between $39,300 and $187,200.

Not everyone needs help with their finances, but for those who do, having a CFP in your corner can be invaluable. If you aren't sure how to organize your finances, navigate investing or balance your financial priorities, a CFP can help. The Kitces Report. How Financial Planners Actually Do Financial Planning (2023).

The Certified Financial Planner (CFP) qualification is offered by CFP Board in the US, and Financial Planning Standards Board (FPSB) outside the US. It is a masters degree equivalent credential and a globally recognized benchmark for excellence in financial planning.

Quick Facts

Average time to complete the coursework requirement: 12-18 months.

At all times when providing Financial Advice to a Client, a CFP^® professional must act as a fiduciary, and therefore, act in the best interests of the Client. The following duties must be fulfilled: Duty of Loyalty.

Of those, 47% are accounting majors—the highest percentage among business majors (including economics, finance, and business administration). And 51% of finance chiefs have MBAs, while 35% have the certified public accountant (CPA) credential.

1.3 million active lawyers (0.40% of U.S. population); > 1.1 million active medical doctors (0.32% of U.S. population); > 673 thousand actively licensed CPAs (0.20% of U.S. population). CPAs are in HUGE demand!

What percentage of financial advisors are CFP® professionals? About 30% of financial advisors in the United States are CFP® professionals. There are approximately 617,549 registered representatives eligible to sell securities in the United States, according to FINRA.

So there are 95,000 CFPs in the US with 670,000 CPAs in the US.