Difference Between CPA and CMA
The full form of CPA is Certified Public Accountants and is pursued by students who are interested auditing, management accounting, accounts handling, taxation, etc. Whereas, the full form of CMA is Certified Management Accountant and is pursued by students who are keen in learning budgeting and management accounting.
One of the major career decisions that an accounting student has to make is whether to pursue Certified Public AccountantCertified Public AccountantThe CPA Exam assesses accounting professionals not just on their financial knowledge, but also on their ability to review and seek out key abilities. (CPA) or Certified Management AccountantCertified Management AccountantCMA is a certificate course offered by the IMA. Here are a few exam tips: 1) Don't panic if you don't know the answer 2) Don't get distracted during the multiple-choice section. 3) Keep track of the time and increase your speed. (CMA). Both function as accountants but with a difference in approach. A CPA certified person generally works in tax and auditing, while a CMA certified person works as a management accountant responsible for the cost and financial analysis.
CPA vs CMA Infographics
Here are the top differences between CPA vs CMA.
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CPA vs CMA – Comparative Table
CMA vs CPA – Which is Better?
The answer to the above question is that both of these certifications are equally good and are highly respected in the field of accounting. The important thing is that they lead the aspiring candidates to different career paths. If a candidate is interested in auditing, taxation, reporting, and regulation, then he/ she should opt for CPA, while if someone is interested in management, strategic analysis, and decision making, then CMA is a better choice for him/ her. So, let us take a closer look at some of the unique benefits of both these certification courses and then decide.
Certified CPA personnel develops the ability to crunch numbers at will as they are required to review day-to-day accounting activities with a major focus on taxation and auditing. On the other hand, certified CMA personnel develops expertise in analyzing and interpreting data, which is then used to drive the business’s financial improvements. The role of CMAs requires more strategic thinking ability as they need to build forward-looking strategies.
For CPA, a candidate gets 18 months to clear all the four parts of the course, and the clock starts ticking from the day the candidate clears the first part. On the other hand, a candidate gets three years for clearing both parts of the CMA exam and the time starts from the day of the registration.
Eligibility or Experience Required
As far as eligibility is concerned, both CPA and CMA require a candidate to have a bachelor’s degree or related professional certification. Besides, CPA requires two years of public accounting experience, while CMA requires two years of management accounting or financial management experience. After being certified, a CPA needs to complete 40 hours of Continuing Education every year. A CMA needs to complete 30 hours of Continuing Education every year to maintain their respective certifications.
The CPA course is divided into four parts – Business Environment & Concepts (BEC), Financial Accounting & Reporting (FAR), Audit & Attestation (AUD), and Regulation (REG). BEC primarily covers management related topics, while the remaining focus on other fields of tax and auditing. Some of the main subjects covered as part of the CPA course include corporate governance, economic concepts & analysis, professional responsibilities ethics & general principles, financial statement accounts, entity federal taxation, individual federal taxation, etc. On the other hand, CMA emphasises building analytical skills, such as data reporting and critical decision making. Some of the main subjects covered as part of the CMA course include planning, budgetingBudgetingBudgeting is a method used by businesses to make precise projections of revenues and expenditure for a future specific period of time while taking into account various internal and external factors prevailing at that time. & forecasting, performance management, internal controls, cost management, decision analysis, professional ethics, financial statement analysis, etc.
Career Opportunity and Salary
CPA professionals usually pursue the career of an accountant or financial advisor. Some of the most common job profiles that CPAs go for include public accountants, management accountants, internal auditors,s, etc. On the other hand, CMA-certified professionals intend to work for large corporations, and some of their common job profiles include cost accountants, consultants, financial risk managersRisk ManagersA risk manager takes care of the financial risk management of an organization by proactively identifying and analyzing potential risks along with the development of preventive measures to either entirely remove or minimize these risks., etc. Over the course of the career, the average salary of a CPA hovers around $120,000, while that of a CMA is around $100,000.
Fees and Passing Rates
On average, the CPA certification cost comes at around $1,500, which includes exam fees, application fees, and licensing fees. On the other hand, the CMA certification cost is approximately $1,000, which includes all the fees. However, the certification cost in both cases doesn’t include the cost of a review course that candidates usually take up for studying.
It is fair to say that both the course exams are challenging, given the historically low passing rates. In the CMA exams conducted during January-February 2020, only 45% of the candidates worldwide could clear both Parts I and Part II [Source: IMA]. On the other hand, the below table captures the outcome of CPA exams conducted during the year 2020 [Source: AICPA].
As of 1st July 2020, the CPA exams have been switched to the Continuous Testing model to write the test throughout the year. On the other hand, the CMA exams will be taking place in the usual three testing windows, as mentioned below:
- Jan 01 – Feb 28, 2021
- May 01 – Jun 30, 2021
- Sep 01 – Oct 31, 2021
CPA vs CMA – How to Enroll?
This has been a guide to CPA vs CMA. Here we discuss the top differences between CPA and CMA professions along with the infographics and comparison table. Do we also discuss why to pursue them? You may also have a look at the following articles –