Difference Between CFP and CMA
CFP is the abbreviation for Certified Financial Planner and it is a course that can be pursued by students who aspire to become financial planners in the future whereas CMA is the abbreviation for Certified Management Accountant and it must be pursued by candidates who are willing to gain an expertise in financial accounting and strategic management.
Each choice that you make in your career takes you nearer to your dreams. Since the right choice is so important for your future, it is better to study and research properly to make the right decision. A hasty decision may waste your precious time and efforts and can also cost you your dream. We understand this, so let us help you to make the right career choice. Read on to know about two very crucial courses for financial professionals that could help give them the right direction to their career.
What is a Certified Financial Planner (CFP)?
CFP or Certified Financial Planner is a certificate course for financial planners who are looking to specialize in strategic financial planning or advisory role in the financial services industry. The certificate is conferred upon by the Certified Financial Planner Board of Standards (CFP Board) in the United States and by its affiliated body FPBS in India.
CFP is a mark of excellence, recognized and respected worldwide by the financial professionals. The course is designed to meet the stringent standards of education, examination, experience, and ethics to ensure that the individuals certified win the trust of employees and have a plethora of opportunities waiting for them after completing the course.
What is a Certified Management Accountant (CMA)?
The Certified Management Accountant is a professional certification in financial management and advanced accounting that qualifies a professional to mete out responsibility related to the arena, which is highly respected by employers around the world. A CMA acquires knowledge and skills in financial planning, analysis, control, decision support, and professional ethics.
The CMA certification is awarded by the U.S based Institute of the Management Accountants. The CMA certified professionals are eligible to work in industries like manufacturing and services, public and private enterprises, not-for-profit organizations, academic institutions, government entities, and MNCs.
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CFP vs. CMA Infographics
Let’s understand the difference between CFP vs. CMA with infographics.
Educational Requirements
CFP
The candidates must fulfill the 4E criteria to be certified as a CFP.
- Education
- Examination
- Ethics
- Experience
The minimum eligibility criterion for the CFP course is a graduate or bachelor’s degree or higher degree with a working knowledge of the financial planning practices prevalent in the industry.
CMA
A candidate requires a bachelor’s degree from any accredited universities across the globe in any discipline to be deemed qualified for the CMA exam.
CFP vs. CMA Comparative Table
| Section | CFP | CMA |
|---|---|---|
| Certification Organised By | Certified Financial Planner Board of Standards(CFP Board) | Institute of management accountants (IMA) |
| Exam/Window | Held thrice in a year in Mar. 14–21, 2017 July 11-18, 2017 and Nov. 7-14, 2017 | CMA Exam Dates 2017 Jan – Feb Jan 1 to Feb 28 May – Jun May 1 to Jun 30 Sep – Oct Sep 1 to Oct 31 |
| Subjects | •General Principles of Finance and Financial Planning •Insurance Planning •Employee Benefits Planning •Investment and Securities Planning •State and Federal Income Tax Planning •Estate Tax, Gift Tax, and Transfer Tax Planning •Asset Protection Planning •Retirement Planning •Estate Planning •Financial planning and consulting | Financial planning Performance and control Financial decision making Performance management Cost accounting Risk management Decision Analysis Professional Ethics Planning, budgeting and forecasting Investment decisions |
| Pass percentage | In 2016, the overall pass rate was 70 percent | As per the result of June, 2015, the pass percentage of CMA Part One (Inter) is 14% and pass percentage of CMA Part Two (Final) is 17%. Passing Percentage of December 2016 exam: CMA Intermediate- 9.09% CMA Final- 12.71% |
| Fees | The actual CFP exam cost is $695.However, you can apply up to six weeks before the date. If you do that, your cost would be $595. If you apply during the last two weeks before the date, then your CFP exam fees would come up to $795. | After the price increase in July 2015, the registration fee of the exam is now $415 per part, which means you’ll have to pay $830 altogether. |
| Job opportunities | Chartered Alternative Investment Analyst Chartered Certified Accountant Chartered Financial Analyst Chartered Financial Consultant Chartered Market Technician Certified International Investment Analyst Certified Management Accountant Certified Public Accountant Financial Risk Manager | Financial risk manager Financial planner and analyst Capital venture Internal auditor Cost accountant and manager |
Why Pursue CFP?
CFP is the highest level of certification for a professional aiming to carve a niche in the financial industry and is appreciated worldwide by professionals and consumers. The certificate has been awarded the Gold Standard Award by the Wall Street Journal, which speaks volumes of its credibility. The CFP candidates are remunerated with attractive salaries in investments, insurance, tax, retirement & real estate.
Why pursue CMA?
CMA is a globally recognized and accepted certification in the corporate world and is extremely relevant for a professional who wants to succeed in the business environment. The certified program’s visibility is increasing and is the most preferred choice to boost career prospects by professionals not only from the US but also in China and the Middle East.
A CMA certified candidate is eligible for higher positions in the company. The relevancy of the certified courses can be determined by the structure of its course and the practical lessons it imparts. The CMA curriculum is designed specifically to mirror real-world applications which are in practice in the financial and accounting sector. And lastly, the very obvious reason CMA designation holders are paid 30% more than their non-certified colleagues.
You may also read this complete guide on CMA exams for further details.
Conclusion
Research is extremely important, considering the time and cost involved in pursuing these certification courses. It is better than to be sure of the career goals and the career boosts you are most likely to achieve before jumping in and registering yourself for the exam.
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