Choosing the right professional course in accounting can prove to be a turning point in your career. Among the various qualifications, CMA and CA are regarded as two of the most prestigious qualifications in the field. Both have lucrative career prospects, but both cater to different aspects of accounting and finance. This article will be offering a detailed comparison of the CMA vs CA, which will go a long way to help you make a well-informed decision on choosing a course that best fits into your career objectives.
What is CMA?
The Certified Management Accountant (CMA) is an internationally recognized professional certification given by the Institute of Management Accountants, USA. The CMA majorly deals in financial management and strategic management but also pertains to cost management. CMA qualification specially covers those individuals who want to develop their skills in financial analysis, strategic management, budgeting, and cost management in organizations. It thus enables individuals to develop expertise in areas of accounting for decision-making, planning, and performance management.
Major Highlights of CMA
- International Recognition: To be recognized among the USA, Middle East, Europe, and Asia.
- Focus Areas: The main focus areas are financial planning, analysis, and control, decision support, and professional ethics.
- Duration: Generally, it takes 6–9 months to complete both parts.
- Eligibility: A bachelor’s degree in any discipline or a relevant professional qualification.
Also, check the detailed CMA syllabus here!
What is CA?
The Chartered Accountant (CA) Qualification is one of the most honorable accounting certifications in India, imparted through the Institute of Chartered Accountants of India. The course program enables an individual to be adept at managing accounting, taxation, auditing, and financial management. The course is quite tough and covers a wide range of aspects related to law, auditing, taxation, and finance.
Major Highlights of CA
- National Recognition: This course is highly valued in India, and after its completion, one can practice either in the public or private sector.
- Focus Areas: The main areas it covers include auditing, taxation, accounting, law, and financial management.
- Duration: It takes around 4-5 years to complete with an internship included.
- Eligibility: Can be pursued after 10+2 (intermediate) or graduation.
Difference Between CMA and CA
While both CMA and CA are prestigious qualifications, they vary in focus areas, global recognition, and career opportunities. Some of the major differences between CMA and CA include the following points mentioned below:
- Scope: While CMA enjoys better international recognition, CA is highly recognized in India.
- Focus: CMA focuses on management accounting and financial management, while the ambit of CA includes auditing, taxation, and law, among a host of other areas.
- Time required: CMA takes less time, approximately it takes 6–9 months, whereas on the other hand, it requires 4-5 years with CA.
- Exam Pattern: In CMA there is one more section that is not in CA; in the pattern of exam structure, the multi-layer comprises the Foundation, Intermediate, and Final Examination in the CA course.
- Work Experience: CA provides for a mandatory requirement of a 3-year articleship, while relevant working experience needed for CMA is 2 years.
Also, check out the comparison article for CMA vs CIMA vs ACCA to know which one is better.
CA vs CMA Comparison
Below is a detailed comparison of CMA and CA courses; the table is created to show a clear difference between these two courses.
| Criteria | CMA | CA |
|---|---|---|
| Full Form | Certified Management Accountant | Chartered Accountant |
| Recognizing Body | Institute of Cost Accountants of India (ICMAI) | Institute of Chartered Accountants of India (ICAI) |
| Global Recognition | Internationally recognized | Primarily recognized in India |
| Focus Areas | Management accounting, financial management | Auditing, taxation, law, financial management |
| Course Duration | 3 years | 4-5 years |
| Exam Structure | 4 papers [Paper 1: Fundamentals of Business Laws and Business Communication (FBLC) Paper 2: Fundamentals of Financial and Cost Accounting (FFCA) Paper 3: Fundamentals of Business Mathematics and Statistics (FBMS) Paper 4: Fundamentals of Business Economics and Management (FBEM)] | 3 levels (Foundation, Intermediate, Final) |
| Eligibility | Bachelor’s degree or professional qualification | 10+2 (Intermediate) or graduation |
| Work Experience Requirement | 2 years relevant experience | 3-year article ship |
| Salary Expectations | Average CMA salary in India around INR 8-12 lakhs per annum | Average salary around INR 6-9 lakhs per annum |
| Career Opportunities | Financial management, cost accounting, strategic planning | Auditing, taxation, consultancy, finance management |
| Exam Difficulty | Moderate | High |
Merits of the Course CMA
After comparing CA vs CMA courses, now check out the benefits of choosing CMA as a career opportunity.
- Global Opportunities: The CMA course has gained recognition all over the world, thus opening up opportunities in international careers, especially in places like the USA, UAE, and Canada.
- Focus on Strategy: The curriculum design of the CMA concerning posting in management accounting and strategic financial management meets the requirement of a job aspirant seeking a leadership role in finance.
- Smaller Length: The CMA course may be finished in quite a short time duration and hence is in demand for career-conscious people.
- Higher Pay Scale: Most CMAs ultimately receive higher compensations compared to most accounting professionals, especially when it involves a multinational corporation.
Career Opportunities for CMA
Here is the list of career opportunities by choosing the CMA course mentioned below.
- Financial Analyst: A CMA is precisely qualified to conduct financial analysis and budgeting functions, which ranks among the most critical positions within organizations regarding decision-making.
- Cost Accountant: Specializes in cost management, helping companies to reduce costs and improve profitability.
- Management Accountant: Engages in internal financial management, planning, and control; often elevates him/her to senior management levels within an organization.
- Corporate Controller: Responsible for the overall accounting and finance functions within the organization, including financial reporting accuracy and compliance matters.
- Chief Financial Officer (CFO): Experienced CMAs may reach the pinnacle in their profession as CFOs and lead in the development of the financial strategy of an organization.
Merits of CA Course
Here are the benefits of opting for the CA course over CMA for candidates willing to choose CA. Let’s have a look at them:
- Respected Qualification: The qualification of CA fairs among the top respectable qualifications in India and therefore holds great credibility and recognition in the financial world.
- Variety of Career Options: CAs are able to choose from a wide range of careers, from auditing, taxation, consulting, to management of finance.
- Compulsory Internship: The article ship for 3 years makes them practically educated, and thus they are job-ready.
- Practicing Rights: Qualified CAs have the autonomous right to practice and offer consultancy as well as auditing services to their clients.
- Government and Public Sector Employment: CAs are in demand in government departments, public sector undertakings, and various regulatory bodies such as SEBI, RBI, and many others.
CA Career Opportunities
CA also has various career opportunities available for candidates, which are mentioned below.
- Auditor: The auditor conducts the audit for the companies and helps the company present the books of accounts as per the required financial regulations and standards.
- Taxation Consultant: Tax consultants offer services in tax planning and advisory to help customers pay efficient tax.
- Financial Consultant: Provides professional advice on financial planning, investments, and risk management.
- Corporate Finance: Engages in corporate finance departments in the preparation of financial plans, mergers, acquisitions, and capital structuring.
- Independent Practice: A great deal of CAs prefer to get on with their own independent practice, offering a wide range of financial services to their clients.
Conclusion: CMA vs CA
Both have their advantages, depending upon the various career goals that one might be aiming at. If one aspires to a career mainly in India, or in auditing and taxation, or wants to practice as an independent professional, then CA would be considered the better option. On the other hand, if somebody is looking toward having an international career, especially in management accounting or strategic financial management, then CMA may be considered as a better option. In short, choose CMA for international opportunities and to focus on financial management and strategy. Or if you want to work in India, then CA, in turn, shows more preferable auditing, taxation, and wider functions of accounting.
CMA vs CA: FAQs
Which is better, CA or CMA?
Both of them are lucrative and entail a host of career options. While focusing on the overall financial knowledge, CA’s areas of concern are the various aspects of accounting, auditing, as well as taxation. CMA, on the other hand, goes more specific towards management accounting, in which its concentration is on strategic financial management.
Who earns more, CA or US CMA?
Generally, US CMAs get a higher salary compared to the starting salary for CAs in India. US CMAs would receive approximately $70,000 to $120,000 annually, while CAs in entry-level positions earn about INR 6–9 lakhs per annum. In the case of experienced CAs in senior roles, they actually earn way higher and can match or be above the pay scale of CMA.
Can a person do both CA and CMA?
The answer is yes; you can pursue both CMA and CA together. Many professionals do that to add more value to their qualifications and career. But again, it all depends on how you manage your time and devotion to studies.
Is CMA recognized in India?
Yes, CMA is recognized in India, especially by multinational corporations and companies with a global presence.
Can a CA work internationally?
Yes, CAs can work internationally, especially in countries recognizing the ICAI qualification. However, that may be subject to additional certifications required by that country.
What are the job roles available for CMAs in India?
In this regard, in India, the career opportunities available to CMAs are as follows: financial analyst, management accountant, cost accountant, or corporate finance, particularly in MNCs.
