CPA vs US CMA – understand differences & which is better for you?
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If you had a crystal ball right now, what question would you ask about the future? If you’re hoping for a career in accounting you may want to know the difference between CPA vs US CMA certifications. Which qualification will serve you best?
Sadly, there are no fortune-telling glass orbs around here, but there is the next best thing. This post will answer all your questions about US CMA vs US CPA.
The field of accountancy has distinctive job profiles that require specific skills and knowledge. CPA professionals are known to be number-crunching experts, keen financial advisors and strategists. CMA holders are professionals specialising in management accounting, business decisions and financial planning.
Companies rely on these two types of accountants for their financial needs. Both certifications offer lucrative salaries, growth opportunities and stimulating work environments. So to make the right choice, dig deeper and analyse various parameters that help you decide if CMA is better than CPA. Or, is it the other way around? Let’s find out.
Differences between CPA and CMA
The US CPA certification
The Certified Public Accountant designation is a badge of honour among accountants. This professional qualification is the US equivalent of the Indian CA, but unlike the latter, the CPA course is globally recognised.
Established by the American Institute of Certified Public Accountants (AICPA), there are over 670,000 members of the CPA community worldwide. The course focuses on financial accounting and students learn how to perform relevant services that directly impact a company’s fiscal well-being.
What does a US CPA professional do?
- Carry out auditing and tax-related work for all types of businesses.
- Prepare and maintain financial statements for companies.
- Keep track of all financial reports, documents and transactions.
- Conduct forensic accounting to check for fraud or mismanagement of finances.
- Make informed recommendations during important financial events.
Benefits of being a US CPA holder
- It is globally acknowledged as a prestigious accounting accomplishment.
- The syllabus is updated to include the latest developments and relevant industry skills.
- CPA accountants can work for some of the world’s top companies including the Big 4, HDFC, Accenture, Amazon and Tata Consultancy Services.
- Salaries are higher for CPA-certified employees.
The US CMA certification
The Certified Management Accountant course offers students a chance to become some of the best management accountants in the world. Companies need efficient and smart professionals to handle their financial operations and make strategic, data-backed business decisions.
Set up by the Institute of Management Accountants (IMA), over 130,000 CMA executives work in leading companies worldwide. They help businesses by creating budgets, optimising existing resources and improving productivity.
What does a US CMA professional do?
- Analyse data to look for insights on boosting profitability.
- Help companies reduce costs and optimise operations.
- Create and maintain financial plans and budgets.
- Develop financial strategies and make effective business decisions that lead to long-term growth.
- Identify, manage or mitigate potential risk factors that threaten the company’s finances.
- Create financial statements that are in accordance with accounting standards.
Also Read – Becoming a US CMA: The Complete Process & Preparation!
Benefits of being a US CMA holder
- It is a globally renowned certification in over 150 countries including the US, UK, Canada, UAE, Germany and India.
- You get to be a part of the illustrious alumni network and learn about the latest developments as they happen.
- The US CMA course can lead to top management roles and leadership positions.
- There are many lucrative opportunities available for CMA professionals.
- Your Rs 1.5 lakh educational investment can result in a Rs 5 lakh to Rs 7 lakh starting salary.
Want To Know More About CMA?
US CMA vs US CPA: A Comparison of features
You need all the information available when making your choice. Here is an in-depth analysis to highlight the difference between CPA and CMA.
Let’s compare the course details of US CPA vs US CMA
| FEATURES | US CMA | US CPA |
|---|---|---|
| Course overview | The course is centred around management accounting and financial management. Students learn about financial planning, decision making and professional ethics. | The course is for professionals who want to be financial accountants and learn about taxation, auditing and Generally Accepted Accounting Principles (GAAP). |
| Syllabus | The US CMA program has two parts.
Part 1 – Financial Planning, Performance, and Analytics
Part 2 – Strategic Financial Management
|
The CPA course has two sections.
The core section has three compulsory subjects:
The disciplinary section has three options but students can pick any one of the following:
|
| Course fees | The CPA program costs around Rs 2 lakhs to Rs 3 lakhs. | The cost of the US CMA course is around Rs 1.65 lakhs to Rs 1.80 lakhs. |
Difficulty Levels Of US CMA & CPA
| FEATURES | US CMA | US CPA |
|---|---|---|
| Course difficulty | You can complete the CMA course within 6 months to a year as you only have to take two exams. | The course requires a longer duration and more subjects to study than the CMA program. |
| Pass rate | 50 per cent worldwide | Also 50 per cent worldwide |
Exam Details Of CPA vs US CMA
| FEATURES | US CMA | US CPA |
|---|---|---|
| Exam pattern |
|
|
| Pass marks | You need 360 out of 500 marks (72 per cent) to pass each paper. | You should score 75 marks out of 99 on each paper to clear the course. |
| Exam duration | You will spend a total of 5 hours for both exams. | The entire CPA exam duration counting all the subjects is 16 hours. |
Are You Eligible For US CMA & US CPA
| FEATURES | US CMA | US CPA |
|---|---|---|
| Qualifications | You need a bachelor’s degree from a recognised university.
Undergraduates are eligible for the US CMA but must verify their degree after completing the course. |
Students must hold a graduate degree, equal to 120 US college credits, to enrol for the CPA. |
| Work experience | Candidates must complete two years of professional experience in management accounting or financial management.
This experience requirement is not needed to take the exams but to acquire the CMA certification. |
Students need 2,000 hours of work experience in accounting, auditing or taxation if they want their CPA license. |
US CMA vs US CPA: career path
| FEATURES | US CMA | US CPA |
|---|---|---|
| Job profiles | Here are some of the positions you can apply for:
|
Here are some of the positions you can apply for:
|
| Growth opportunities | CMA accountants can hold management positions and work as:
|
CPA accountants can hold management positions and work as:
|
| Salary packages |
|
|
Also Read – US CMA Salaries In India – What will you earn throughout your career?
CPA or CMA? Which is better for you?
| US CPA | US CMA |
| You like number-crunching roles and are interested in areas such as taxation and auditing. | You prefer working in management positions and playing a key role in the decision-making process. |
| You like to work on the more technical side of accounting. | You are more interested in the big picture and want to be a part of the business operations. |
| You have time to study for four exams before you start your career. | You are a working professional and want to finish the course in 6 months to enhance your career. |
| You are smart, reliable, efficient and detail-oriented. | You have strong analytical, problem solving and leadership skills. |
How Proschool can make you a US CMA professional
The pass rate for the CMA exams is 50 per cent. To increase your odds of clearing the course, you need to work smart and study efficiently. Proschool is one of India’s top coaching institutions for this reason.
The staff is trained to help students master the subjects through active learning methods and innovative training techniques. The professors are industry experts who teach the latest IMA-approved syllabus. Special attention is given to skill development and real-world application. At Proschool, students get a holistic learning experience enabling them to become global accountants.
Benefits of Proschool’s US CMA Prep
- Multiple coaching centres are available across India.
- Online classes are also an option.
- Professors offer customised study plans, revision classes and doubt-clearing sessions.
- You get exclusive learning resources such as mock tests, practice papers, prep books and videos.
- Proschool’s placement program offers certified students direct access to hundreds of job openings in the finance and accounting industry.
FAQs
Can I take the CPA course after CMA?
If you want to specialise in taxation, auditing or cost accounting, you can do the CMA course after getting the CPA certification.
What are the benefits of doing the CMA course?
The biggest advantage to taking the CMA is the salary bump. The IMA global salary survey has shown that CMA professionals earn 20 per cent more than their counterparts who don’t have the same qualifications. Other benefits include working for large global companies and being elevated to senior leadership roles.
Which companies hire CMA professionals in India?
CMA professionals are often recruited by some of the world’s leading companies, such as EY, Accenture, Crisil, PwC, Deloitte, Amazon and many more
Do CPA or CMA professionals earn more in the USA?
In the US, the average salary for a CPA is roughly $120,000, while a CMA professional could earn around $100,000. These salaries vary depending on the company, experience level and location.
Is CPA tougher than CMA?
The CPA has more exams to study for than the CMA so it would require more effort and time on your part. The difficulty levels in both exams are equally challenging and it comes down to which course is more appealing.
Conclusion
It’s safe to say that when it comes to US CMA vs US CPA, everyone is a winner. No matter what you choose, you will receive a comprehensive education in accounting that will make you a coveted hire in the industry. To decide, pick the course that appeals to your interests and is aligned with your career goals. Either way, you’re on your way to a successful future.
Dwij K
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