In accounting, the certification you choose can significantly impact your career. The Certified Public Accountant (CPA) and the Certified Management Accountant (CMA) are two of the most recognized certifications in the accounting field. Both CMA vs CPA certification have their respective advantages, and it is crucial to understand the differences between the two to make an informed decision. In this blog, we will cover a detailed comparison of CMA vs CPA in terms of their certifications, salaries, exam difficulties, and more.
What Are the Differences Between CPA and CMA?
The most frequent inquiry individuals have when considering these two certifications is, “What are the primary differences between CPA vs CMA?” While both designations are highly regarded within the accounting and finance profession, they are utilized for different purposes.
CPA is broadly recognized as a credential for public accountants qualified to provide auditing, tax, and consulting services. The CMA certification, on the other hand, is specifically geared towards management accounting with an emphasis on decision-making, strategic planning, and performance management within an organization.
Let us examine these two certifications more closely to see where they vary in function, benefit, and career path.
Curious About Differences Between CPA and US CMA?
What Is the US CPA Certification?
What Does a US CPA Professional Do?
A US CPA is an expert in accounting, tax laws, auditing, and financial reporting. CPAs are typically employed by public accounting firms, corporations, or the government, and they provide services such as tax return preparation, financial statement auditing, and financial consultancy. Their services typically involve ensuring that companies are compliant with regulations and follow proper financial procedures.
What Are the Benefits of Being a US CPA Holder?
Qualifying as a US CPA opens numerous career opportunities, especially for those who would like to work in public accounting, tax, or audit. Some of the benefits are:
- Being acknowledged as a finance and accounting professional.
- Greater job security and career advancement opportunities.
- The potential for higher salaries and bonuses.
- Ability to set up your own accounting firm or practice.
What Is the US CMA Certification?
What Does a US CMA Professional Do?
A US CMA professional is concerned with the internal management and strategic financial planning of a company. They are experts in cost management, performance analysis, budgeting, and forecasting. CMAs are generally hired as financial controllers, CFOs, or cost managers in private organizations, helping businesses efficiently manage their finances.
What Are the Benefits of Being a US CMA Holder?
Choosing the US CMA certification has several benefits for candidates who are interested in corporate finance or management accounting. These benefits are:
- A comprehensive understanding of financial decision-making and strategy.
- Opportunities to serve as CFOs, controllers, or financial managers in executive positions.
- Greater credibility in management accounting and finance.
- Higher demand in other industries, such as manufacturing, finance, and consulting.
How Do the CPA vs US CMA Compare in Terms of Features?
When comparing CPA vs US CMA, there are several factors to consider. Let’s examine a few of the similarities and differences:
Let’s Compare the Course Details of US CPA vs US CMA
The content of US CPA and US CMA is not the same due to the difference in the skills they specialize in. The CPA course is more comprehensive, covering subjects like auditing, taxation, and financial reporting. The CMA course, on the other hand, focuses on financial management, cost accounting, and performance management.
While the CMA course usually requires less study time compared to the CPA, both certifications do require that one has a very good understanding of accounting principles.
What Are the Difficulty Levels of CPA vs US CMA?
One more consideration in deciding between CPA vs US CMA is the level of difficulty. The CPA exam tends to be more challenging since it covers a wider variety of topics. Students need to pass four sections of the exam, which include auditing and attestation, financial accounting and reporting, regulation, and business environment and concepts.
On the other hand, the CMA exam is split into two parts: financial planning, performance, and control; and financial decision-making. While CPA vs US CMA exam difficulty can vary for some, the CMA exam is less challenging according to many candidates due to its more limited scope.
What Are the Exam Details of CPA vs US CMA?
The CPA exam has four sections, and the candidate must pass each section separately within 18 months. The exam is more focused on US Generally Accepted Accounting Principles (GAAP) and taxation laws.
On the other hand, the CMA exam has two parts, and the candidates have three years within which to complete both parts. CPA vs US CMA exam difficulty differs, but the exam sections of the CMA are, on the whole, less demanding, though still challenging in terms of technical expertise.
Are You Eligible for CPA vs US CMA?
Eligibility for CPA vs US CMA certification varies by locality. To be eligible for CMA certification, the applicant must have a bachelor’s degree with at least two years of experience in management accounting or financial management.
For the CPA certification, the requirements are more rigorous. Candidates need 150 semester hours of education (usually 30 hours more than a typical bachelor’s degree) and a specified amount of professional work experience, which can vary by state.
How Do Career Paths Differ Between CPA vs US CMA?
When comparingCPA vs US CMA, both certifications open the door to well-paying career paths, just in different manners. CMA professionals tend to move into corporate finance roles, including financial analysts, controllers, or CFOs. CPA professionals, on the other hand, are typically in auditing, tax, or consulting roles at accounting firms or larger businesses.
Which Is Better for You: CPA vs US CMA?
The decision whether to go for a CPA vs US CMA certification depends on your career goals. If you are interested in public accounting, auditing, and tax services, then the CPA certification would be best for you. And now you know, what is CMA? So, if you are interested in management accounting, business strategy, and corporate finance, the CMA course would be perfect for you. Both certifications offer excellent career benefits, but the best one for you would be where you would want to specialize.
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FAQs on CPA vs US CMA
Can I Take the CPA Course After CMA?
Yes, many professionals choose to do the CPA certification after obtaining the CMA certification. This can be an excellent way of increasing your skill set as well as your career opportunities.
What Are the Benefits of Doing the CMA Course?
The CMA certification puts you in line for leadership positions in management accounting, where you can gain expertise in financial planning, budgeting, and performance management. It also offers a faster path to certification compared to the CPA.
Do CPA vs CMA Professionals Earn More in the USA?
CPA professionals, on average, earn more, particularly in audit and tax jobs. CMA professionals who transition into upper management or CFO roles, however, can also earn high salaries.
Which Companies Hire CMA Professionals in India?
CMA professionals in India are hired by numerous multinational firms, manufacturing organizations, and consultancies. A few organizations that value the CMA skill set, especially for strategic planning and financial management roles, are TCS, Wipro, and Accenture.
