US CPA VS US CMA

Certified Public Accountant (CPA) and Certified Management Accountant (CMA) are both certifications for accounting professionals, but they differ in terms of their focus and scope.

The CPA certification is geared towards individuals who work in public accounting, such as auditing and tax services, and covers a broad range of topics such as financial accounting, audit and attestation, regulation, and business environment and concepts. It is recognized worldwide and is required for certain positions, such as those in public accounting firms or those that require a CPA license to practice.

The CMA certification, on the other hand, is designed for individuals who work in management accounting, such as financial planning and analysis, budgeting, and strategic planning. The focus of the CMA certification is more on the practical aspects of accounting and management, and it covers topics such as financial planning, performance and control, and decision analysis. The CMA certification is not as widely recognized as the CPA certification but is still highly respected in the accounting profession.

Let’s have a look at the differences between them on a broader aspect:

Course Duration:

CPA- The CPA certification requires a minimum of 120 credit hours of education to take the US CPA exams and 150 credits to get his CPA license, and it typically takes around 10–12 months to complete.

CMA- On the other hand, the CMA certification requires a minimum of 2 years of education or experience in management accounting. This means that individuals who already have an undergraduate degree in accounting or a related field can complete the CMA program in around 6–9 months.

Exam Structure:

CPA-The CPA exam consists of 4 parts, each of which takes 4 hours to complete. The exam covers a broad range of topics such as financial accounting, audit and attestation, regulation, and business environment and concepts. The exam is computer-based and consists of multiple-choice questions, task-based simulations, and written communication tasks.

CMA- On the other hand, the CMA exam consists of 2 parts, each of which takes 4 hours to complete. The exam focuses on management accounting topics such as financial planning, performance and control, and decision analysis. The exam is also computer-based and consists of multiple-choice questions and task-based simulations.

Job Role:

CPA- The CPA certification is geared towards individuals who work in public accounting, such as auditing and tax services. CPAs can also work in other areas such as financial accounting, government accounting, and consulting. CPAs can perform a variety of tasks such as auditing financial statements, preparing tax returns, and providing consulting services to clients.

CMA- On the other hand, the CMA certification is designed for individuals who work in management accounting, such as financial planning and analysis, budgeting, and strategic planning. CMAs can perform tasks such as preparing budgets, analysing financial statements, and making strategic business decisions.

Salary:

CPA- The salary for CPAs and CMAs in India can vary depending on various factors such as the individual’s experience, industry, and location. However, generally speaking, CPAs and CMAs in India can earn competitive salaries. The average salary of a CPA is around Rs 6,00,000 to Rs 10,00,000.

CMA- The average salary of a CMA is around Rs 5,00,000 to Rs 7,00,000

In summary, the CPA certification requires covers a broader range of topics, while the CMA certification is more focused on management accounting and both the courses can be completed in shorter time period. The job roles and tasks performed by CPAs and CMAs also differ, with CPAs typically working in public accounting and CMAs typically working in financial management. The salary for both certifications can vary depending on factors such as experience, education, and location.