CA Vs CMA

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Choosing a career is one of the important decisions you will ever make. It will impact the rest of your life. While many people want to become Chartered Accountant, others want to become Certified Management Accountant. Confused about choosing CMA vs CA?
While both these courses have the same goal, there are still many differences between them. This blog will help you decode these differences and show you how you can make the right decision because we are here to explore the difference between CMA and CA and come to a conclusion that will find out which is better for you to pursue.

What is CMA?

The CMA is an advanced designation offered by the Institute of Management Accountants (IMA) and certifies that the holder has acquired the skills necessary to be a certified management accounting professional.
The certificate program is designed to help finance professionals and students meet the abilities needed to effectively communicate and apply specialized financial and accounting knowledge used to analyse and interpret managerial information, such as understanding the fundamental processes involved in planning, managing, and controlling business enterprises.
Emphasis is placed on the specialized knowledge required to understand, interpret, and effectively communicate cost and management accounting concepts related to the planning, budgeting, and controlling activities of an organization.

Steps to Become a CMA

Becoming a Certified Management Accountant (CMA) is a great way to strengthen your career. To get started, you must pass the CMA exam. You can take the exam after 12th, to get the final certification you will need at least a bachelor's degree and 2 years of relevant experience.
  • As the next step, you have to appear for the exam which has about two parts, Part 1 and Part 2.
  • The total number of marks from these exams is 500, in order to pass and obtain a certificate of completion, the applicant must obtain at least 360 marks.
For the average person taking the tests, the time to complete both part is about 6-9 months. When you complete your education and complete both parts, you can meet the extensive educational requirements to become a Certified Management Accountant.

What is CA?

As a chartered accountant, you can work in all areas of business and finance. They are, for example, tax accountants and auditors, general management accountants, and budget analysts. You can be employed by government agencies and public and private sector companies.
In short, people who are proficient in this field are always in demand in all industries. To become a fully qualified CA, you have to pass various exams and the training process is rigorous. When you are a Chartered Accountant, you can manage the financial accounts for an organization, be it a tax accountant, accounting manager, budget analyst, and of course, most interestingly, an auditor.

Steps to become a CA

If you are willing to pursue a career as a Chartered Accountant, you can appear for the CA Foundation exam when you complete your 12th standard or you can also take the Intermediate exam when you complete your graduation.
The trainee must work in an authorized professional firm for a period of three years to be part of the final examination. The intern also needs to enrol in an IT course that teaches various basic technical skills like excel, word, etc.
They can pass the article assistant level exams after three years of experience as a trainee. Before they write it, they have to complete 100 hours of soft skills development courses and learn how to effectively deal with customers.

The difference between CMA and CA

  • Both CA and CMA are accounting-based courses, but CA is based on accounting on financial or monetary principles while CMA is on managerial accounting. The CMA course is known for its strategic management accounting.
  • In CMA deals with financial planning, performance, and analysis whereas CA deals with taxation, business law, etc. CMA is an advanced course that is more practical and deals with the application of knowledge in the business field.
  • In terms of course duration, CA courses last for about 5 years. On the other hand, the US CMA course is only about 6 to 9 months. Although both are professional courses, CMA can be cracked faster than the CA exam.
  • When comparing job profiles, a CA is an individual who manages taxes, goods and services tax, corporate finance, business recovery, and forensic finance. In CMA, an individual has the roles of Financial Controller, Financial Analyst, Cost Accountant, and Financial Manager.

CA vs CMA - Comparison

Particulars  CMA CA
Exams are controlled by Institute of Management Accountants (IMA) Institute of Chartered Accountants of India (ICAI)
Eligibility 2 exams with two years of relevant work experience and a bachelor’s degree. CA has 20 exams with 3 levels. It requires 3 years of work experience in a chartered firm (Articleship)
Difficulty level Not so difficult Difficult
Pass rates 45-50% Around 8-12%
Duration of the course 6-9 months Around 5 years
Salary difference between CMA vs CA Entry-level CMA: 4-7 lakh per annum Entry-level CA: 6-7 lakhs per annum

Benefits of doing a CA course

There are many benefits of doing a CA course from ICAI. The position of an auditor is highly respected and the demand for CA is also growing. Some of the benefits of CA course in India are:
  1. The way to enter the corporate world
After completing the CA program, an individual can enter the corporate world and manage the finance and accounting department of a company.
  1. Exposure to industrial and public services
A CA can join industry or government organizations. They can act as business consultants who develop, report, and analyse the information needed to make business decisions.
  1. CA can also work as a global accountant
CA can offer its financial reporting services globally. They can also detect or prevent fraud by scanning the financial statements of large multinational companies. They can also work as appraisers and value and audit assets and liabilities.
  1. Practice in the education
A CA can also act as a lecturer in universities and colleges. They can also start their training centre.
  1. Pursue higher education
If a CA wants to practice as a lecturer or professor, he can also opt for higher studies at a university or college.

Career Opportunities after CMA Programme

There is no specific career or job opportunities after CMA. This is because every industry requires a CMA. CMAs are always in demand in the public and private sectors, development institutions, banking, and finance, as well as education and research. Some of the common professions for CMAs are:
  • Chief Financial Officer (CFO)
  • Financial analyst
  • Chief Financial Officer
  • Accountant
  • Senior financial analyst
  • Chairman
  • Academic and pedagogical
  • Managing Director
  • CHIEF EXECUTIVE OFFICER
  • Financial manager

CA vs CMA: Conclusion

If you think you have a knack for business and want to pursue a career in financial accounting, you may need to decide between CA or CMA.
Chartered Accountant or CA is a long-term course that is taken after the 12th commerce or after completion of graduation or a bachelor’s degree in any subject. The CMA (Certified Management Accountant) is a professional certification that can be obtained right out of high school.
CAs are people who are involved in the business of finance and accounting and help the company to produce the company's profit and loss account. Earning a CMA means to employers can acquire knowledge in financial planning, analysis and control, decision-making, professional ethics, and support skills in the areas of managerial accounting and financial accounting.
With proven expertise and success rate CFO NeXt provides better coaching and guidelines for CMA aspirants, contact us for further CMA course-related details.
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3 Comments

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