CMA vs ACCA: What’s the Difference?

Ready to supercharge your accountancy career but need clarification on CMA and ACCA? Get ready to enter the world of finance with one of the two powerhouse certifications opening doors to global opportunities and specialized skills. With CMA, you can achieve a strategic role in management accounting, or accelerate towards even broader financial expertise with the ACCA. Knowing about both the courses does help to understand the key differences between them to get you moving in the right direction.”. Let’s break down what makes each unique and help you figure out which one fits in with your career goals.

What is ACCA?

The full form of ACCA is Association of Chartered Certified Accountants, which trains you for accountancy, audit, taxation, and finance. There are more than 227,000 ACCA members in total and students pursuing ACCA are around 544,000. ACCA emphasizes strategic thinking, technical skills, and professionalism in the field of accountancy.

Structure of ACCA Examination 

The examination structure of ACCA consists of three levels (13 papers):

• Applied Knowledge: 3 exams (Business and Technology, Financial Accounting, Management Accounting)
• Applied Skills: 6 exams (Corporate and Business Law, Performance Management, Taxation, Financial Reporting, Audit and Assurance, Financial Management)
• Strategic Professional: 4 exams (Strategic Business Leader, Strategic Business Reporting, plus two optional exams from Advanced Financial Management, Advanced Performance Management, Advanced Taxation, or Advanced Audit and Assurance)

ACCA Program Flexibility 

The ACCA certification provides flexibility to the candidates to let them study part-time or full-time. The students can choose exam sessions of their choice and sometimes sit for exams at their convenience. Therefore, it becomes an ideal opportunity for working professionals to learn along with their profession.

ACCA Study Requirements

The ACCA qualification requires knowledge of accounting principles and professional ethics. Passing this exam requires time and dedicated preparation from your end, usually between 10 to 15 hours per week, and practical financial skills.

Eligibility Criteria for the ACCA Course

Candidates need to possess:

• 10+2 with a minimum of 65% in Mathematics/Accounts and English, and 50% in other subjects.
• Commerce or business graduates can join at the Applied Skills level.
• You can be exempt from giving a certain number of papers based on appropriate qualifications, such as CA, MBA, or equivalent accounting courses.

ACCA Course: Why Choose it?

Here are some of the reasons why you should pursue an ACCA course:

International Acceptance: ACCA is accepted in more than 180 countries and provides easy access to MNCs and international opportunities.

Extensive Curriculum: It trains candidates in accountancy, auditing, taxation, and financial management and prepares them to work in most domains.

Flexible Study Options: Candidates can study while working, with the provision of sitting for multiple exams in a year, either online or through centers.

Job Versatility: Possible to be employed in any industry and many countries and provides career flexibility.

ACCA Duration 

It may take about 2-3 years to finish the ACCA qualification. This is because it depends on the student’s preparation and passing ability in the exams. The ACCA course duration can again vary depending on the number of exemptions availed by the candidate.

ACCA Pass Rates

ACCA pass rates generally vary for each paper but are often within the 40 % and 50%. It is advisable to aim at getting more than 50 % in exams to be on the safer side. 

ACCA Opportunities for Career Advancement

Here are some of the career opportunities available to you after obtaining your ACCA certification:

Financial Consultant: Offers financial planning, risk management, and compliance advisory to individuals or businesses.

Internal Auditor: The internal auditor ensures the company’s financial integrity, risk management, and law compliance.

Taxation Manager: Handling tax planning and compliance to ensure tax liabilities are minimized using ACCA expertise.

Finance Manager: Handling financial activities like budgeting and reporting that make the companies successful.

Management Accountant: Analysis and processing of financial data to aid strategic decisions and enhance profitability.

ACCA Average Salary

In India, the average starting remuneration of an ACCA professional is up to ₹ 12,00,000 lakhs per year. For others, going to the UK or UAE, ACCA certification results in much higher earnings, depending on experience.

ACCA Cost

The cost of ACCA qualification is usually between  ₹ 3,00,000 –  ₹ 4,00,000 lakhs. The costs usually include; registration fees, exam fees, other administrative costs, and coaching fees along with study material.

What is CMA?

CMA is an abbreviation for Certified Management Accountant. CMA is a professional certification that is universally recognized and focuses on advanced financial management and strategic decision-making. With knowledge of financial planning, performance management, and control systems, the CMA or certified management accountant is placed in a leadership position relating to finance, accounting, and business strategy.

CMA Program Structure

There are two exam parts of the CMA program:

Part I: Financial Planning, Performance, and Analytics – cost management, budgeting, and internal controls.

Part II: Strategic Financial Management – includes financial statement analysis, risk management, and investment decisions.

Each component aims to develop thorough financial and strategic capabilities.

CMA Course Eligibility Criteria: What are they?

Eligibility for the CMA course is defined by the following criteria for the candidate applying:

• Bachelor’s degree  from an accredited university or any recognized institution
• Must be a member of the IMA.
• Two years of adequate working experience in finance, accounting, or management.
• Pass both Part I and Part II exams in one sitting within three years.

CMA Course: Why Should I Take It?

Here are some of the reasons why you should pursue CMA:

• Career Advancement: CMAs will have relevant strategic financial management skills with a possibility for promotion to senior roles like being the CFO or financial manager.

• International Acceptance: The CMAs are recognized in more than 150 countries and are highly required in various sectors worldwide.

• Versatility: This qualification provides skills and expertise in accounting as well as analysis, risk management, and decision-making.

• Industry Requirement: Organizations want a combination of accounting with strategic insight for improving profitability and efficiency.

CMA Criteria

To successfully achieve CMA one needs to:

• Clear both parts of the CMA exam.
• Meet the academic requirement of having a bachelor’s degree.
• Acquire two years of relevant work experience
• Remain a member of the IMA and adhere to their code of ethics

CMA Pass Rates

The pass rate for CMA exams internationally is around 45 percent per part. Due to partly challenging yet still indicative of a strong emphasis on practical application and theoretical knowledge, comprehensive preparation becomes necessary.

CMA Duration 

A CMA program can take about 12 to 18 months to complete. Once they enrol in the CMA program, the examinees are given three years to clear both parts of the examination. For most candidates, however, they usually finish the CMA course much sooner than the allocated time

CMA Requirements for Professional Experience

Applicants should possess two years of work experience in fields such as financial management, cost accounting, or even internal auditing to become eligible for the CMA designation. This is to ensure that an applicant has hands-on experience and can cope with strategic roles designated for a CMA.

CMA Opportunities for Careers

A CMA degree acts as a gateway to a wide range of career options like the following:

• Management Accountant: Responsible for handling budgeting, cost management, and performance evaluation.

• Financial Analyst: Prepares instructions based on financial data to make business decisions or investments.

• Cost Accountant: In charge of and analyzes costs to benefit the profitability of a company.

• Financial Controller: In charge of accounting, financial reporting, and internal controls.

• Chief Financial Officer (CFO): Oversees the financial strategy while controlling the finances of a corporation.

CMA Average Salary

The average salary of a CMA professional at entry level is up to ₹ 9,00,000 per annum. Globally, CMAs earn significantly more compared to non-certified peers, reflecting the value of the certification in roles involving financial leadership and strategy.

CMA Cost

The cost of the CMA varies with your membership status. For professional members, the entrance fee to the CMA is USD 280, and then you pay an extra fee of USD 460 for every part of the exam. Students or academic members take advantage of cheaper fees, paying USD 210 for the entrance fee and USD 345 per part. This fee structure reflects the CMA’s focus on management accounting and financial decision-making. So, it definitely will not burn a hole in your pocket if you have a focus on those streams of knowledge.

Which Course is Right for You, ACCA or CMA?

It comes down to your goals in terms of the career you want to pursue, the industries you want to work in, and also how much of a global recognition you yearn for. ACCA is renowned globally for accounting and finance, whereas CMA specializes in management accounting and corporate financial management. Both are promising in terms of career prospects but differ slightly in terms of specialization.

CMA vs ACCA: Quick Comparison 

Conclusion

The career aspirations held by an individual will determine the decision made between ACCA and CMA. Do you want international recognition? Finance careers with broader job prospects? Do you plan to pursue an audit and financial management career? The best would be ACCA. If you are more into management accounting, strategy in corporate organizations, and even leadership positions in multinational organizations, then CMA would be best for you. Both qualifications provide excellent career prospects, but you must relate your choice to your professional objectives and the geographical markets in which you wish to work.

FAQs on ACCA vs CMA:

Does CMA offer the same level of services as ACCA or is it better?

CMA and ACCA are two different roles in finance and accountancy so, there is no better one inherently- only you can decide which of them to concentrate on based on your career goals.

Is it possible to do ACCA after CMA? If so, how many papers of ACCA are exempted after the US CMA?

Yes, you can study ACCA after CMA, but you usually get no exam exemptions upon acquiring CMA.

Which course is more expensive, ACCA or CMA?

Well, ACCA is relatively more costly compared to CMA because of the number of exams and more number of sessions it requires.

Can I pursue ACCA or CMA if I do not have a background in commerce?

Yes, one can do both ACCA and CMA even if one does not have a commerce background, though it will surely require extra preparation.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.