CPA vs. CMA
What is Difference between CPA and CMA? The corporate world has become extremely competitive in recent years. It is no longer enough for a person to have a diploma to compete for a particular position. For many, obtaining a certificate can be the difference between getting ahead in the corporate world and going unnoticed by potential employers. Below this post is all about the difference between CPA and CMA.
Difference between CPA and CMA
CPA and CMA are two certifications that accountants can obtain after they graduate from college. Although they could have a stable job without being certified, the accountants who have taken and accredited the CPA or CMA certifications have a greater chance of having a better paid job than the accountants who are not certified. If you are an accountant and it is difficult to decide which of the two certifications to take, read the following to know more about these certifications.
CPA stands for Certified Public Accountant (Certified Public Accountant) is the most popular certification between these two types. It is also the most accepted and accredited for an accountant. A CPA performs audit management tasks, taxes and preparation of financial statements to ensure that an individual or company complies with the legal and financial requirements required by the authorities. On the other hand, a CMA means Certified Management Accountant.
The accountants who receive this certification are more dedicated to management responsibilities related to financial management, analysis and strategies. On top of that, a CMA counter also has the ability to lead employees and companies to allow it to be more prosperous.
Another difference between CPA and CMA, are the requirements that must be met to be able to take the exam. Both certifications require that the applicant must have completed an academic program in Accounting. On top of that, applicants must also have passed an entrance exam or GMAT. In most countries, applicants for CPA certification do not need to have any previous work experience to qualify for the exam. However, CMA applicants must have proof of having worked at least two years before being allowed to take the exam.
Finally, there is a difference in job opportunities. While being certified in CPA or CMA increases the chances of being employed in a position of higher pay than most applicants, a CPA certification covers a wide range and focuses on the skills and knowledge of audits, taxes and financial laws of a particular state or city. On the other hand, CMA counters are more specialized. Apart from being able to provide the same services as a CPA, these have also been certified to be recognized leaders within the organization or corporation. For this reason, CMA counters can scale to corporate positions faster than others.
- The CPA and CMA certifications that an accountant can take are intended to provide better job opportunities with better salaries compared to non-certified accountants.
- The CPA certification exam focuses on audits and knowledge of taxes and financial laws. The CMA certification exam focuses on the financial management, analysis and strategies of the applicant’s skills.
- The CMA certification is more specific than the CPA certification, which is why it requires more requirements to be met by the accountant in order to be qualified to take the examination of this certification.