Choosing your career path is one of the biggest decisions you will ever make. It will impact the rest of your life. While many people want to become a Chartered Accountant, others want to become Certified Management Accountants. Are you confused between choosing CMA Vs CA ?
While both these courses have the same objective, still there are many differences between the two. This blog will help you decode these differences and show you how you can make the right decision, as we are here to explore the difference between CMA and CA and end up with a conclusion that finds which is better for you CMA or CA!
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CMA is an advanced designation offered by the Institute of Management Accountants (IMA), and it certifies that the holder has acquired the skills needed to be a certified professional in management accounting.
The certification program is designed to help financial professionals and students meet the competencies needed to effectively communicate and apply the specialized finance and accounting knowledge used to analyze and interpret management information, such as understanding the basic processes involved in the planning, directing, and controlling of business enterprises.
The focus is on the specialized knowledge needed to understand, interpret, and effectively communicate cost and management accounting concepts related to the organization’s planning, budgeting, and control activities.
Becoming a Certified Management Accountant (CMA) is a great way to further your career. To begin you’ll need to pass the CMA exam. You can take the exam right after 12th, to get the final certification you’ll need to have at least a bachelor’s degree and 2 years of relevant experience.
For an average person taking the tests, the completion time for both parts comes out to be about 6-9 months. When you complete your education and pass both parts, you can fulfill the extensive education requirements to become a certified management accountant.
As a Chartered Accountant, you can work in all fields of business and finance. For example, there are tax accountants and auditors, general management accountants, and budget analysts. You can be employed by government bodies and public and private sector companies.
In short, people who are skilled in this field are always in demand in all industries. To become a fully-qualified CA, you must take different exams and the training process is rigorous. When you are a Chartered Accountant, you can manage financial accounts for an organization, be it tax accountant, management accountant, budget analyst, and of course, the most interesting of all, an auditor.
If you are willing to pursue a chartered accountant career, you can appear for the CA Foundation exam when you are done with your 12th standard or you can also take up the intermediate exam when you complete your graduation.
A trainee must work at a chartered professional firm for three years to be a part of the final examination. The trainee must also enroll in an IT course that teaches various basic tech-related skills like excel, word etc.
They can take the article assistant level exams after three years of working as a trainee. Before they write it, they need to complete 100 hours worth of soft skills development classes and learn how to effectively deal with customers.
|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 professional 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|
|Part 1 CMA USA||Part 2 CMA USA|
|Financial Planning, Performance, and Analytics||Strategic Financial Management|
|Section A – External Financial Reporting Decisions (15%)||Section A – Financial Statement Analysis (20%)|
|Section B – Planning, Budgeting, and Forecasting (20%)||Section B – Corporate Finance (20%)|
|Section C – Performance Management (20%)||Section C – Decision Analysis (25%)|
|Section D – Cost Management (15%)||Section D – Risk Management (10%)|
|Section E – Internal Control (15%)||Section E – Investment Decisions (10%)|
|Section F – Technology and Analytics (15%)||Section F – Professional Ethics (15%)|
|Fundamentals of Accounting|
|CA Inter Group 1||CA Inter Group 2|
|Corporate and Other Laws||Auditing and Assurance|
|Cost and Management Accounting||Enterprise Information Systems & Strategic Management|
|Taxation||Financial Management & Economics for Finance|
|Group 1 CA Final subjects||Group 2 CA Final subjects|
|Financial Reporting||Strategic Cost Management and Performance Evaluation|
|Strategic Financial Management||Any one of the below: (Optional paper)-Risk Management-Financial Services and Capital Markets-International Taxation-Economic Laws-Global Financial Reporting Standards -Multidisciplinary Case Study|
|Advanced Auditing and Professional Ethics||Direct Tax Laws and International Taxation|
|Corporate and Economic Laws||Indirect Tax Laws|
If you think you have an aptitude for business and are looking to pursue a career in financial accounting, then you might have to decide between choosing a career in Chartered Accountancy or Chartered Management Accounting.
Chartered Account or CA is a long term course that is taken after 12th or after completing a Graduation or bachelor’s Degree in any subject. The CMA (Certified Management Accountant) is a professional certification that can be taken right after secondary education.
Chartered Accounts are the people who are involved in the business of finance and accounting and help the company to make a profit and loss account of the company. Obtaining the CMA signifies to employers the ability to gain knowledge within financial planning, analysis and control, decision making, professional ethics, and support capabilities in management accounting and financial accounting fields.
By choosing a career in Certified Management Accounting, you can be part of a growing field that is revolutionizing the world of finance and management accounting. If you are planning to make a move towards the evergreen courses out there, choose CMA from NorthStar Academy – The best training institute in India for Finance Aspirants. Enroll now by filling in the CMA USA Enquiry form or call +918147470707 now!