CFA vs US CMA: Differences & Factors to Help You Decide

All about the US CMA program

In 1972, the Certified Management Accountant program was created by the illustrious Institute of Management Accountants in the United States. Fast forward 50 years, and there are more than 100,000 US CMA holders in over 150 countries. The US CMA course has an exceptional reputation in the finance industry, as the syllabus is centred around crucial finance areas such as professional ethics, financial planning, strategic decision making and analysis. Students develop a strong competency in accounting management and financial management on a global level. They pass two strenuous exams that test their deep knowledge and understanding of the management accounting field. This certification gives the professional credibility in the industry, ensuring they get a competitive edge over their peers.

US CMA vs CFA: course focus

Before you choose whether CFA or CMA US is better for you, first understand the focus of each course. The CFA program teaches investment management, financial analysis and portfolio management. Students learn advanced knowledge about financial markets, asset management, equity research and relevant industry topics.

The main difference between the US CMA and CFA is that while the CFA is focused on investment services, the US CMA course is about management accounting, financial management and strategic decision-making. Students are taught relevant accounting topics such as financial planning and analysis, business development and budgeting.

US CMA vs CFA: eligibility requirements

The CFA program requires all applicants to hold a bachelor’s degree or be in the final year of their graduate program. If you are a working professional with over 4 years of experience, you can enrol in the course. It is also important to note that all CFA students must hold a valid passport and complete the Professional Conduct Statement.

The CFA and CMA US courses need students to hold bachelor’s degrees to be eligible. The CMA certification is granted once you submit proof of your graduate degree. Undergrad students can take online tests, but they must present their degrees within seven years after passing the exams. You also need two continuous years of professional experience in management accounting to qualify for the certification. You can complete the work experience before or after the course.

Also Read- Are You Eligible for CFA Level 1? Let’s Find Out!

US CMA vs CFA: Course syllabus

The CFA curriculum has three levels with the same ten subjects. The weightage and difficulty levels differ.

1. Ethics and Professional Standards
2. Quantitative Methods
3. Economics
4. Financial Reporting and Analysis
5. Corporate Issuers
6. Equity Investments
7. Fixed Income
8. Derivatives
9. Alternative Investments
10. Portfolio Management and Wealth Planning

 

The US CMA syllabus has two Parts.

Part 1: Financial Planning, Performance, and Analytics

1. External Financial Reporting Decisions
2. Planning, Budgeting, and Forecasting
3. Performance Management
4. Cost Management
5. Internal Controls
6. Technology and Analytics

 

Part 2: Strategic Financial Management

1. Financial Statement Analysis
2. Corporate Finance
3. Decision Analysis
4. Risk Management
5. Investment Decisions
6. Professional Ethics

 

Also Read- CFA levels 1,2 & 3 – Syllabus, Exams, How To Study, Tips To Pass & More

US CMA vs CFA: Exam structure

There are a few differences between CFA and CMA US exam patterns.Let’s look at the CFA course first. At the end of each level, you get tested on theoretical knowledge and quantitative methods.

Level 1

1. The exam format is multiple-choice questions.
2. There are two sessions with 90 questions each.
3. Each session has a time limit of 2.15 hours.
4. Exams are held several times a year.

 

Level 2

1. The exam has case study-based questions and MCQs (item sets).
2. Each item set has one case scenario and 4 to 6 MCQs.
3. There are two sessions with 44 questions each.
4. Each session has a time limit of 2.12 hours.
5. Exams are held twice a year.

 

Level 3

1. The exam has a combination of essay questions and item sets.
2. The first session has 8 to 12 questions that might need calculations.
3. The second session has 44 case scenario-based questions.
4. Each session has a time limit of 2.12 hours.
5. Exams are held twice a year.

 

The two US CMA exams focus on different areas of management accounting and financial management.

1. Both exams have 50 MCQs and one essay question.
2. Both exams are 4 hours long.
3. 3 hours are allowed for the MCQs.
4. The essay time is one hour.

 

Also Read- Understand The US CMA Exam Pattern

US CMA vs CFA: Skills

You need a special skill set to carry out specific tasks as a CFA or CMA US professional.

CFA:

1. Strong analytical skills when reading financial statements and reports.
2. Expertise in quantitative methods such as statistical concepts, probability and data analysis.
3. Problem-solving skills that use financial data to solve problems.
4. Deep knowledge of investment terms such as asset allocation, risk management, derivatives and commodities.
5. Proficient at financial modelling and building complex financial models.
6. Application of CFA’s ethical standards.
7. Good communication during presentations and meetings.
8. Awareness of global financial markets, industry developments and economic scenarios.

 

US CMA:

1. Proficiency in financial management, forecasting, budgeting and variance analysis.
2. Creating strategic financial plans to achieve company goals.
3. Strong decision-making skills using analytical techniques.
4. Problem-solving abilities to ensure effective business solutions.
5. Economic awareness of market trends and global practices.
6. Knowledge of ethical professional standards.
7. Technical expertise in ERP systems, MS Excel and financial modelling.
8. Persuasive communication during key decision-making processes
9. Leadership and organisational skills when leading teams or departments.

 

Also Read- 10 must-have skills of CFA professionals

US CMA vs CFA: career opportunities

Once you get your certification, you can apply for jobs that suit your credentials. Here are some job profiles that are perfect for CFA and CMA professionals.

CFA:

1. Investment analyst
2. Portfolio manager
3. Equity research analyst
4. Hedge fund manager
5. Private equity analyst
6. Risk Manager

Average annual salaries:

Entry-level: Rs 6 lakhs to Rs 8 lakhs

Mid-level: Rs 10 lakhs to Rs 20 lakhs

Senior-level: Rs 25 lakhs to over Rs 50 lakhs

US CMA

1. Management accountant
2. Financial analyst
3. Controller
4. Cost accountant
5. Corporate finance manager
6. Chief financial officer (CFO)
7. Internal auditor

Average annual salaries:

Entry-level: Rs 4 lakhs to Rs 7 lakhs

Mid-level: Rs 8 lakhs to Rs 15 lakhs

Senior-level: Rs 20 to over 40 lakhs

Also Read- US CMA Salaries In India – What will you earn throughout your career?

Comparison between CFA and CMA US

FEATURES	CFA	US CMA
Managing board	CFA Institute	Institute of Management Accountants (IMA)
Main focus	Investment Management	Management Accounting
Course duration	3 to 4 years to finish all three levels.	6 months to a year to finish both parts.
Passing marks	There is no fixed passing rate. The CFA board decides if a student clears the exam or not.	You must score a minimum of 360 out of 500 marks to pass.
Cost	The CFA course can cost between Rs 3 lakhs to Rs 6 lakhs (depends on coaching costs)	The US CMA course is around Rs 2 lakhs, including coaching fees.
Work experience	4 years of professional work experience is required to qualify for the CFA charter.	2 years of relevant work experience is needed to be eligible for the US CMA certification.

 

Also Read- US CMA Course Fees – Exam, Coaching, Study Material, Total Cost etc.

Sign up for Proschool’s CFA and US CMA courses

Proschool’s CFA program is tailored to transform aspiring finance professionals into investment specialists. Students acquire a strong grasp of core concepts such as portfolio management, financial reporting and investment analysis. They receive the tools and skills to overcome challenges in the finance field and create investment opportunities for their clients.

Similarly, Proschool has a top-notch US CMA course that trains students to master financial management and accounting roles. The syllabus is the most recent, IMA-approved version taught by experienced faculty members. Students develop a deep understanding of subjects and master the skills to advance their accounting careers.

Proschool’s special features:

1. Professors are industry experts who teach using innovative active learning techniques.
2. Online and offline classes are available.
3. The learning experience is enhanced with online lectures, interactive learning materials, full-length mock tests, practice papers and real case studies.
4. Students receive customised study plans, doubt-clearing classes and revision sessions.
5. Proschool holds resume writing sessions and mock interviews to help certified students prepare for the job market.
6. Proschool’s exclusive placement program helps students look for multiple job openings in the industry.