CPA US Vs. US CMA: Which is Better?

One of the burning questions for those considering a career in accounting or finance is which one to choose among the two most sought-after certifications in the field – CPA US or US CMA. 

It’s a decision that’s difficult to make without investing hours of research and energy into deciding what’s best for you. Both CPA US and US CMA can enhance your career prospects, but some key differences – from eligibility to cost – set them apart. 

We’ve compiled this guide to help you reach a conclusion on whether US CMA or CPA US is better suited to your career goals. 

Before we dive into the differences between the two certifications, let’s see what they are all about.  

What is CPA US?

Certified Public Accountant (CPA) is a professional accounting designation awarded to individuals who pass the Uniform CPA Exam and meet the education and experience requirements mandated by the respective state boards of accountancy in the United States. A Certified Public Accountant (CPA) is a reliable financial consultant who aids individuals, businesses, and other entities to devise and accomplish their financial objectives. The American Institute of Certified Public Accountants (AICPA) is the certifying body for the CPA designation.

 

What is US CMA?

Certified Management Accountant (CMA) is a professional certification in the field of management accounting. The Institute of Management Accountants (IMA) in the United States awards the CMA certification, which recognizes management accounting professionals in business. Possession of the CMA certification indicates proficiency in financial planning, analysis, control, decision support, and ethical standards. To earn the CMA certification, candidates must complete a two-part exam and fulfil the education and experience requirements set by the IMA. 

 

Eligibility Criteria for US CPA and US CMA 

US CPA and US CMA have different eligibility requirements.

US CPA Eligibility:

To pursue the US CPA course, students should have a Bachelor's degree in Commerce and a Master's degree with a minimum of 120 credit points. Furthermore, students must complete 150 hours of the CPA course semester. This means that students must have extra credits in addition to their undergraduate degree to meet the eligibility criteria for US CPA.

US CMA Eligibility:

Students pursuing the US CMA course must have or pursue a Bachelor's degree as basic eligibility. However, the US CMA course allows students pursuing their Bachelor's degree to take the CMA exams. The key requirement for US CMA is that students must meet the CMA work experience requirements, which include two years of professional experience in accounting or finance. Freshers may fulfill the experience requirement within seven years after passing the examination.

CPA Vs. CMA: Professional Responsibilities

 

US CPA As A Profession And Its Responsibilities:

• Designation in accountancy provided by AICPA
• You can work in diverse fields such as education, administration, business, government, and various accounting departments.
• As a reliable financial advisor, you can assist individuals, businesses, and organisations create and achieve their financial objectives.
• Keeps a tab of financial transactions, works on auditing and taxation, provides consulting services, helps in financial planning, and works on litigation consulting
• Licensed to file income tax returns for Companies
• Requires at least 40 hours of continuing professional education or CPE annually to remain at their designation

 

US CMA As A Profession And Its Responsibilities:

• Certified Management Accountancy is the Gold Standard in the field of management accounting
• Awarded by the IMA on successful completion of the 6-month US CMA course
• Work for private organizations as an in-house financial consultant who analyze financials and advise the management on the basis of it
• Equipped with advanced decision-making and problem-solving skills required to guide the company
• Track and maintain reports on the organization's success and other performance indicators
• Function across different spheres of the organization to improve overall operational efficiency
• Utilize relevant technology and analyze past and present data to accelerate the organization's success

Course Details for US CPA and US CMA

The US CPA and US CMA are two professional certifications in accounting and finance management that have different course details. In this article, we will compare the course details for both certifications.

US CMA Course Details:

The US CMA course has only two parts, which can be cleared in 7 to 9 months. This benefits working professionals who wish to upskill and accelerate their career paths without disrupting their current commitments. Students can take the CMA Exam while finishing their undergraduate degree and complete the certification process once they qualify for the work experience criteria.

 

The two parts of the US CMA exam are as follows:

• Part 1: Financial Planning, Performance, and Analytics
• Part 2: Strategic Financial Management

 

US CPA Course Details:

The CPA course in the US consists of four parts, and it typically takes around 9-12 months to finish the course. The four sections of the US CPA exam include the following:

• Auditing and Attestation (AUD)
• Business Environment and Concepts (BEC)
• Financial Accounting and Reporting (FAR)
• Regulation (REG)

 

Duration and Exams:

To earn a CPA, candidates must score 75 or more on each section to pass, and each section must be passed within an 18-month window, which begins as soon as the candidate passes the first exam. The scoring of the CPA exam is treated with great care, diligence, and accuracy. 

 

On the other hand, candidates for the US CMA course have three years to pass both parts of the exam, starting from the day of registration.

 

Both the exams are conducted online (in prometric centres) and have multiple-choice questions. 

Total Costs for CPA US and US CMA Certification

The total cost of the US CPA course is significantly higher than that of the US CMA course. As of May 2021, the total cost of the US CPA course in India is approximately INR 3,50,000, including training and exam fees. This cost may vary based on the state where the exam is taken and does not include additional expenses such as review courses and study materials.

In contrast, the total cost of the US CMA course is much lower, ranging from INR 120,000 to 160,000, including training and exam fees. This makes the US CMA course a more affordable option for students looking to pursue a career in management accounting or financial management.

 

Syllabus Comparison of CPA US vs. US CMA

The CPA US and US CMA courses have different syllabi, and the emphasis on various subjects covered in each course is distinct. 

 

CPA Syllabus 

 

The CPA course has four parts, including: 

• Business Environment & Concepts (BEC)
• Financial Accounting & Reporting (FAR)
• Audit & Attestation (AUD)
• Regulation (REG)

 

The BEC section of the CPA exam mainly focuses on management-related subjects, while the other sections concentrate on different areas of taxation and auditing. The CPA course covers various topics, including corporate governance, economic concepts & analysis, professional responsibilities, ethics & general principles, financial statement accounts, entity federal taxation, and individual federal taxation.

 

US CMA Syllabus 

In contrast, the US CMA course focuses on developing analytical skills such as data analysis and critical decision-making. The course is divided into two parts, comprising:

• Financial Planning, Performance, and Analytics
• Strategic Financial Management

 

The course covers subjects like planning, budgeting & forecasting, performance management, internal controls, cost management, decision analysis, professional ethics, financial statement analysis, and other related topics. The CPA course covers a broader range of topics, while the CMA course emphasizes analytical skills and decision-making.

 

US CPA vs. US CMA: Exploring Career Paths

 

US CPA 

After completing the US CPA course, candidates have various career paths. CPA-certified individuals can work as financial controllers, public accountants, financial managers, or internal auditors. They can also be employed in areas such as attestation, tax, and consulting services by local and international firms. The CPA certification is highly valued in the finance and accounting field and opens up a wide range of job opportunities.

 

US CMA 

On the other hand, the US CMA course offers a different set of career paths. With the skills developed through the CMA certification, individuals can work in large organizations with complex work environments. This includes international banks, financial institutions, and trending businesses. Some common job roles for CMA-certified individuals are financial risk managers, internal auditors, cost accountants, and CFOs.

 

Which Certification is Better?

As you can see, both certifications have their own unique benefits and career opportunities. Ultimately, the decision between CPA and CMA comes down to your career goals, aspirations, and interests. 

The CPA US certification is ideal for you if you aspire to work in the US or for multinational companies in India or anywhere else in the world. However, if you want to build a rewarding career in financial and managerial roles in Indian companies, the US CMA certification is a shorter and less expensive route to get there.