CA vs CMA: Courses, Career Scope & Differences

Selecting between CA and US CMA is one of the most crucial decisions when looking for a successful career in accounting or finance. Disparities in focus area, worldwide recognition, and course design set these credentials apart. You can choose the credential that best suits your objectives by staying aware of these distinctions. CMA is the right choice if you’re looking for possibilities abroad or if management accounting is your area of interest.

What is US CMA?

US CMA full form – Certified Management Accountant. The US CMA is a well-recognised certification by IMA, mainly focusing on financial management and strategic decisions. It thereby enables accountants in budgeting and cost management, performance evaluation, and management of risk skills.

The US CMA is simply a doorway into corporate finance and accounting managerial positions. Making CMA the preferred qualification for those who like getting ahead and moving into leadership finance department positions.

What is CA?

CA is a highly recognised qualification within India and several Commonwealth countries. The ICAI offers the CA certification, focusing on auditing, taxation, financial reporting, and corporate law. Usually, CAs occupy roles in auditing, taxation, financial consulting, and accounting.

Chartered Accountant, better known as CA, is one of the most reputed positions in India and many other countries. In India, CA is a dream that most Commerce students dream about, but only a few can achieve it due to its high difficulty level. 

The course offers in-depth accounting knowledge, including financial accounting, budgeting, business strategy, taxation, and auditing. Candidates pursuing and completing the course enjoy exciting career opportunities and the benefits of doing a CA course, like a great package and respect in society. 

CA is a challenging qualification that requires the completion of various exams. Mandatory practical training is well recognised as a mark of excellence in accounting. CA exams are famous for being difficult, but with proper preparation, one can pass them.

If you wish to step into the corporate world as a finance professional, there are several ways to make it happen. With a plethora of learning options and exciting job profiles in today’s world, it is only natural to get confused while deciding on one career path that serves you best in the long run. If you’re looking for a prestigious job in the field of finance that also has an international demand, then US CMA and CA are two courses you should surely consider.

Wondering what CMA is? US CMA’s full form is Certified Management Accounting. If you’ve already considered them and now are confused between the two of them, we’re about to make your deciding process much easier.

Before diving into the whole CA vs CMA debate and finding the right option for your future goals, let us understand them in detail and know what they offer.

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CA vs US CMA: What is the CA Course All About?

The CA course curriculum is structured into three stages: Foundation, Intermediate, and Final. Besides theoretical knowledge, practical training through articleship is an essential part of the course, providing hands-on experience. The CA course has a strong basis in compliance and regulatory activities and, therefore, can be best accommodated in the field that involves statutory audits, tax consulting, and similar other regulatory functions in finance.

Eligibility: The applicant should have successfully completed their 10th and 12th examinations to appear for the entry-level CA foundation course with a 50% aggregate score in 12th. 

For the second-level examination (CA Intermediate), one needs to qualify for the CA foundation course with a 50%-60% aggregate score in a bachelor’s or master’s degree. 

For appearing in the CA final exam, you need to have successfully qualified for both Group 1 and 2 of CA Intermediate. Also, you need to complete a 4-week Advanced Integrated Course to learn about Information Technology and soft skills.

Steps to Become a CA

The first step for becoming a CA is to check the CA eligibility criteria issued by the ICAI. Candidates who have completed graduation with accountancy as a major subject can pursue the CA course. 

To start, the candidate will have to enrol in a CA program from the Institute of Chartered Accountants of India, which is a recognised body for CA. The course will provide different professional-level exams that the candidates will have to pass one by one to proceed. Along with the exams, the candidates also need to complete practical training and a module on ethics. 

Once all the exams, practical training, and ethics programs are done, it is time to apply for the CA membership. The ICAI body will go through all the necessary details and then certify the candidate with the CA title.

Job Opportunities After CA Examination

Assurance and Audit 

Assurance and Audit experts ensure that the financial statement is authentic and accurate according to the given regulatory standards. Assurance and audit experts conduct statutory audits, internal audits, and forensic audits. Many CAs work with auditing firms or multinationals and audit financial statements while ensuring the integrity of financial reporting.

Government Taxation

A CA can have a career in government taxation, working with tax laws, policy enforcement, and regulatory compliance. They assist their clients or organisations in proper tax planning, filing returns, and compliance with direct and indirect taxation laws. They may engage as advisors on tax saving and restructuring for government departments.

Accountancy and Finance

In accountancy and finance, CAs manage the company’s financial records and budget and analyse financial documents. They function as Financial Controllers, Accounting Managers, or Finance Officers, to manage financial transactions, maintain ledgers, and prepare financial statements.

Risk Management

Risk management professionals assist companies in identifying and tracking financial risks, analysing them, and eliminating or reducing these risks. CAs specialising in this field concentrate their efforts on risk assessment of investments, mergers, market volatility, etc. To ensure that companies prepare to face uncertainties related to operations, cash flows, regulatory compliance, etc.

Investment Banking

CAs working in investment banking would help organisations with matters like mergers and acquisitions, going public, and raising capital funds. Their task would be to study financial statements, investment plans, and business valuation. To better analyse investment strategies and provide insights to investors and stakeholders.

Chief Financial Officer

The Chief Financial Officer (CFO) is the apex career position for a CA. A CFO oversees the financial welfare of an organisation. Individuals are required to engage in financial planning, risk management, and record-keeping besides reporting. A CFO will provide strategic advice to the CEO to assure financial stability and drive growth for the business.

CA vs CMA: What is the US CMA Course all About?

The US CMA course approaches financial management, planning, examining, and decision-making. The course focuses on areas such as budgeting and forecasting, performance management, cost management, and internal control. CA focuses on the fields of audit, taxation, and financial reporting. CMA focuses on developing strategic business leadership and operational expertise.

US CMA is a management accounting course, and the US CMA full form is Certified Management Accounting. It helps students improve their financial accounting expertise by enabling them to acquire management skills to make strategic decisions based on financial statistics. The Institute of Cost Accountants of India (ICAI) conducts the Certified Management Accountant (CMA) examinations. The exam consists of three levels: Foundation, Intermediate, and Final.

Eligibility: For the foundation level, the applicant must have completed their secondary education from a recognised board and also need to have any one of the following education qualifications:

• Passing mark sheet of class 12th
• National Diploma in Commerce
• Diploma in Rural Service Examination from a recognised board 

For the intermediate level, you must have completed/cleared one of the following:

• 10th and 12th from a recognised board
• Institute of Cost Accountants of India’s Foundation Course 
• Graduation in any discipline other than Fine Arts
• Institute’s Foundation Part I of the CAT (Certificate in Accounting Technicians) Examination
• The institute’s Foundation level Part I Examination and Competency Level Part II Examination.

To appear for the US CMA final exam, the applicant must have cleared the intermediate level of the exam along with 15 hours of practical training.

Steps to Become a CMA

The first step to becoming a US CMA is to check the CMA eligibility criteria issued by IMA. 

Educational Requirements: Bachelor’s degree or professional certification.

Join IMA: Institute of Management Accountants (IMA).

Two CMA Exams: Financial Planning, Performance, and Decision-Making.

Work Experience: Two years of work experience in the field of management accounting or financial management.

Maintain Certification: Fulfil annual CPE (Continuing Professional Education) requirements.

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CMA Job Opportunities 

Cost Accountant

Cost Accountants focus on cost control, cost analysis, and budgeting. They make sure that businesses optimise resources in the best, most efficient way possible. By analysing a company’s production costs to recommend strategic moves that will help lessen unnecessary expenditures while maximising profitability.

Financial Analyst

A Financial Analyst performs the analysis of financial information to predict business performance, analyse risk, and make recommendations on investments. CMAs are invaluable, as they guide mergers and acquisitions and capital budgeting in organisations. Therefore, it plays an important role in corporate finance.

Management Accountant

Management Accountants apply their CMA abilities in helping organisations make internal financial reports, strategic decisions, and performance management. They will support the process of business planning. They will have in-depth knowledge about the financial health of an organisation, which allows them to make long-term plans.

Financial Manager

As a Financial Manager, CMAs manage the financial health of an organisation. By controlling financial reports, investment activity, and long-term financial planning for an organisation. CMAs play influential roles in maximising profits and setting up plans for sustainable growth in finances.

Chief Accountants

A Chief Accountant administers accounting activities, financial reporting, and compliance with finance regulations. CMAs at such a level ensure the correctness of financial information. They administer budgeting activities and lead accounting groups in organisations.

Internal Auditor

Internal Auditors assist the management of an organisation. To ensure that its financial and operational activities are in sync with its policies, regulations, and standards. CMAs in such a position identify risks, assess control systems, and recommend improvements to improve governance and compliance.

The Difference Between CMA and CA

candidates with lucrative opportunities, they are different from each other in several ways. 

• Eligibility: To achieve a CA certification, students must have an undergraduate degree in accountancy. However, candidates graduating in any stream can opt for the CMA course. 
• Duration: CMA is a short-term course of 6-9 months, while CA is a professional course that takes about 5 years. 
• Difficulty Level: CA is considered much more difficult than CMA.
• Job Opportunities: CA candidates have job opportunities in areas like financial management, taxation, and auditing. Career opportunities and benefits of doing a CMA course are that candidates can find jobs in areas like management accounting, cost accounting, business strategy, and financial analysis.

The following are the different attributes of CMA and CA:

CA vs CMA: Salary in India

Compared to a CMA salary in India, a CA commands a higher income. A CA finds employment in markets that are in high demand, primarily auditing, taxation, and compliance. The average salary of a CA could vary between ₹6 and ₹20 lakhs per annum, while CMAs earn between ₹8 and ₹15 lakhs.

For example, in the global scenario, CMAs bring in more money. In both cases, the general statements apply, but salaries quickly escalate with experience, industry, and location.

CA VS CMA: Which One is Less Time Consuming?

The US CMA qualification is less time-consuming because it has only two exam parts. Anyone can complete it within 6-12 months, compared to the CA qualification, which takes 3 to 5 years to complete. The time for CA varies with the candidate’s progress from the Foundation and Intermediate to Final levels.

Moreover, the CA program also requires mandatory articleship, or practical training, which increases the time required to qualify.

CA VS CMA: Which One Provides Better Job Opportunities?

CMA and CA offer different kinds of career opportunities; both are excellent. In various fields, the career prospects of CMA vs CA may differ. A significant demand is present for hiring CAs for auditing, taxation, and financial reporting, especially in India.

On the contrary, the Cost and Management Accountants (CMA) work to maintain and handle the cost records, pricing the goods/services, and verifying cost records. Since only large-scale firms require cost auditors, the job opportunities after completing CMA are slightly more limited as compared to CA. The demand for CMA is likely to increase in the coming 10-15 years as several new companies in India are setting up their base.

Is CMA Easier Than CA?

Neither CA nor CMA is per se “easier”, but they differ in challenges. CA exams include topics ranging from taxation to law or even auditing with rigorous levels of examination. CMA specialises in management accounting and financial management, encompassing fewer examinations and less preparation time. However, one can say that CMA is easier in comparison to CA.

CA vs CMA: Can I Pursue Both CA and CMA?

Yes, with proper preparation and planning, you can do CA and CMA together. CA and CMA are complementary to each other.

If you study to be a CA, you will be excellent in auditing and taxation. And if you know CMA, you will be outstanding at cost management and strategic finance, but studying both at the same time can be hectic concerning studying, training, and exams. Most students tend to pursue one before the other to avoid busy schedules.

Conclusion

CA and CMA are two of the most highly respected certifications. Each opens a different career prospect in the sector of accounting and finance. CAs do exceedingly well in auditing, taxation, and compliance, particularly in India.

However, CMAs do well in cost management and strategic financial roles within and outside India. CA or CMA: it depends on your career aspiration, industry preference, and time commitment. Whether you choose to pursue CA, CMA, or a combination of both, each will give you equally remunerative opportunities.

FAQs on CA vs CMA

Which is better for a commerce career in India: CMA or CA?

CA excels in auditing and taxation, while CMA is ideal for management accounting and corporate strategy, offering two distinct, valuable career paths.

Who earns more on average: a CA or a US CMA?

A US CMA generally earns more globally, especially in the US and UAE. In India, a Chartered Accountant typically has a higher earning potential. 

Is CMA considered equal to CA in terms of recognition and job opportunities in India?

No, a CMA is not considered equal to a CA in India. While a CMA is valued, a CA has broader recognition and more job opportunities, especially in auditing and taxation.  

Is the CMA course more difficult to pass than CA?

CMA is a professional course that is not simple but doable with proper preparation. Students find CMA easier in comparison to CA.

Can a CMA professional earn ₹1 lakh per month in India?

Yes, an experienced CMA professional can earn ₹1 lakh per month in India, typically after 6-10 years, or sometimes sooner in senior roles.

Who earns more overall: CA, CMA, or CFA?

Globally, a CFA charterholder often earns the most, particularly in investment roles. A CA’s salary is highly dependent on location, and a CMA’s pay is very competitive in corporate finance.

Is CA more powerful than CMA when it comes to career growth and influence?

A CA often holds more statutory power in India, while a CMA’s influence is more strategic and global, focusing on corporate decision-making.

Anant Bengani, brings expertise as a Chartered Accountant and a leading figure in finance and accounting education. He’s dedicated to empowering learners with the finest financial knowledge and skills.