US CPA or US CMA: Which one is the right certification for you?

Introduction:

The accounting landscape is gradually evolving year after year. With the greatest US accounting firms like the Big4 or other top MNCs setting up their industries in India in recent times, the demand of accountants in the Indian as well as US market have reached a high level. Accounting enthusiasts tend to pursue certain accounting courses to kickstart their career. Certifications like US CPA and US CMA hold such beneficial and lucrative career opportunities in accounting as well as finance. There are certain differences in the eligibility requirements and exam structure for these two courses, but to take a note, both the courses hold equal acceptability across the globe. Let’s discuss the courses in detail.

What is the US CPA?

A US CPA or US Certified Public Accountant is a globally certified accounting professional who specializes in the field of public accounting like financial accounting and reporting, auditing and attestation, business environment and concepts, financial regulations, tax services and extensive knowledge in GAAP. They need to meet certain eligibility requirements for appearing in the CPA exam as well as earning the license. To note, US CPA is equivalent to Indian CA.

What is the US CMA?

A US CMA or US Certified Management Accountant is a globally certified accountant who has gained knowledge in financial management or managerial accounting like financial planning and analysis, budgeting, forecasting, strategic planning, cost control, and cost & risk management. One can earn the license for CMA by meeting certain eligibility criteria including passing the CMA exam.

Let’s look at the difference between US CPA and US CMA from a broader perspective.

Governing Body:

• US CPA: The US CPA exam is conducted by the American Institute of Certified Public Accountants (AICPA) and the license for it is issued by the State Board of Accountancy.
• US CMA: The Institute of Management Accountants (IMA) conducts the CMA exam as well as issues licenses to the qualifiers.

Eligibility:

US CPA: Depending on the state/jurisdiction:

• Bachelor’s degree from an accredited college/university
• 120 credit hours required to take exams, 150 for licensure
• Pass all 4 parts of the CPA exam
• 2000 hours work experience (tax, audit, accounting, consulting)
• Pass the ethics exam (depends on the chosen state Board.
• May require membership in the relevant accounting body (ICWAI, ICAI, ICSI) or MBA/Master of Commerce.

US CMA: As set by the IMA,

• For exam: 12th pass out from any board
• For certification: Bachelor’s Degree with 2 years of work experience in accounting
• Pass both the parts of CMA exam
• IMA membership

Exam Structure:

• US CPA: It has a 4-part exam consisting of 3 core sections and 1 discipline section having 50–80 MCQs and 6–8 TBS in each part. The candidates must score 75 on a scale of 0–99 in each section to qualify the exam.
• US CMA: It has a 2-part exam having 100 MCQs and 2 essays in each. The candidates must score 360 marks out of 500 to qualify the exam.

Exam Fee:

• US CPA: The CPA examination fee is $350 per section.
• US CMA: For students, the examination fee (part 1 & 2) is $1,014 and for professionals, it’s $1,585.

Course Duration:

• US CPA: 9–12 months
• US CMA: 6–9 months

Job Opportunity:

US CPA: A CPA can work in public accounting firms like Big4 and MNCs, government agency, corporation or business, nonprofit, may even open their own CPA firm. Certain job roles are:

• Corporate accountant
• Tax accountant
• Financial advisor
• Forensic accountant
• Auditor

US CMA: A CMA can work in managerial accounting within any accounting firm like Big4 and MNCs, corporations, startups, nonprofit organizations and government agencies. Most common roles are:

• Financial risk manager
• Cost accountant
• Financial analyst
• Managerial accountant
• Senior accountant
• Chief Financial Officer (CFO)

Salary:

• US CPA: $78k in USA and 12 LPA in India
• US CMA: 8 LPA

Conclusion:

Simandhar Education is the leading and award-winning institute for providing both the US CPA and US CMA courses. We provide best guidance under the mentorship of our excellent faculty and the co-founder, Mr. Sripal Jain (CA, US CPA). No institute other than ours provides both the Simandhar and Becker study materials. We have an extensive curriculum along with giving access to live sessions/webinars, pre-recorded classes, interview sessions, question banks, mock tests and all the necessary assets. You can also get a free CPA eligibility check for the US CPA exam. You can even join our telegram and WhatsApp community for easier updates and get a friendly experience of studying. For getting placements in the global landscape, we’re here to assist you by leveraging our excellent tie-ups with the Big4 and US MNCs.