CPA vs CMA
The corporate world has become extremely competitive in the past few years. Nowadays, it is no longer enough that a person holds an undergraduate or graduate diploma. For many, getting a certification can spell the difference between getting ahead in the corporate world, and getting passed off by potential employers.
CPA and CMA are just two of the certifications in which an accountant may show interest after graduating from university. Although they would be able to get a stable job without being certified, accountants who have taken and passed either a CPA or CMA certification have a higher chance in getting higher paying jobs than non-certified accountants. If you are an accountant, and find yourself having a hard time deciding which of the two certifications to take, continue reading to learn more about them.
CPA, which stands for Certified Public Accountant, is the more popular certification between the two. It is also the most widely accepted and accredited certification for an accountant. A CPA mostly handles tasks such as auditing, taxes, and preparing financial statements to ensure that an individual or company is able to meet the legal financial requirements mandated by local government agencies. CMA, on the other hand, stands for Certified Management Accountant. Accountants that receive this certification are more adept in handling responsibilities pertaining to financial management, analysis and strategies. On top of that, CMA certified accountants are also expected to have the ability to lead employees, and have enough business know-how to allow the company or organization to prosper.
Another difference between the CPA and CMA certifications, are the requirements needed to qualify for the exams. Both the CPA and CMA require applicants to have completed an undergraduate academic degree program in Accountancy. On top of this, CMA applicants must have also passed the Graduate Management Admission Test, or GMAT. In most countries, CPA certification applicants do not need to have any previous work experience to qualify for the exam. However, CMA applicants are required to present proof that they have had at least two years working experience before they will be allowed to take the exam.
Finally, there is the difference in work opportunities. While being certified as either a CPA or CMA increases your chances to be employed in higher paying jobs than most other applicants, the CPA certification covers an extremely broad scope, and merely focuses on the auditing skills and knowledge of the tax and financial laws in a particular state or country. On the other hand, CMA accountants are more specialized. Apart from being able to provide the same services of a CPA, they have also been certified as valuable leaders within an organization or corporation. For this reason, CMA accountants are able to rise up the corporate ladder faster, and will often form part of top management personnel.
Summary
1. CPA and CMA are certifications that an accountant may take in order to qualify for better and higher paying work opportunities.
2. The examination of the CPA certification focuses on auditing, and the knowledge of tax and financial laws. CMA certification exams centers on gauging the financial management, analysis and strategizing abilities of the applicant.
3. The CMA certification is more specific than the CPA certification, which is why there are many more requirements to be met by an accountant in order to be qualified to take this certification exam.