The rewards of earning a CPA or CMA exam make all the studying and testing worthwhile. CMAs find themselves in demand with the biggest names in U.S. and global commerce, including 3M, Alcoa, AT&T, Bank of America, Boeing and Cargill. CPAs help individuals and businesses on accounting-related topics, like taxes, audits and regulatory measures.
The content of each set of exams is well-documented by each examining body (the IMA for CMAs and the AICPA for CPAs). Although the CMA vs CPA Exam difficulty is subjective, some of the main differences between CPA and CMA are the exam formats and requirements. Let’s take a look at the difference between CPA and CMA exam structures. While both certifications require a significant investment of your time, there are differences in the amount of education required to become a CMA vs CPA.
- To maintain certification, one must maintain Institute of Management Accountants (IMA) membership and continuing education requirements.
- For example, in Nebraska, the state requires you to have a prior work experience of at least 4000 hours to be eligible for licensure.
- Many states require 150 hours of college credit before you can even take the exam, which can be satisfied by additional undergraduate courses or a master’s degree.
- In reality, most accountants (whether starting as public accountants or not) will end up in the corporate sector.
The main differences between CMA and CPA are their respective educational requirements, testing structures and costs. Before deciding which path to take, CMA vs CPA, it’s important to understand the basics of both accounting certifications. Policies have changed, and now the AICPA’s pass rates web page only features the current year’s pass rates. Still, the average is around 50% for the CPA, even when we look at past years’ stats. For 2021, though, the CPA Exam pass rates went down a bit from previous years. You shouldn’t make your decision about which accounting certification to take on price alone.
Is the CMA exam challenging, and how can I prepare effectively?
Most states have the same requirements in terms of hours, but there may be slight variations as to how often they must be completed. Of course, your earnings depend on many factors, such as the size of the firm, whether you’re in public or private accounting and your level of experience. But according to AICPA Salary Insights 2019, the average salary of a U.S.-based CPA based is $122,000 a year, and that doesn’t include bonuses.
Compare the CMA certification
To become fully licensed in all states, you must have 150 hours of college credit and satisfy accounting experience requirements. Although you can take the exam while you are still in school, to become fully certified, you must complete a bachelor’s degree program and satisfy experience requirements at your job. Baseline numbers have CMAs earning $113,000 a year and CPAs earning $105,903 a year.
It demonstrates to your employer your commitment to the profession. For example, the CPA license is necessary for auditors in public accounting who want to be promoted. https://simple-accounting.org/ The CPA is widely recognized and you get the perks no matter where you work in the finance and accounting field, be it public or non-public accounting.
It enables you to work in corporate accounting settings, performing a wide number of mission-critical functions for influential multinational organizations. How do you improve your odds of not simply being hired, but being actively recruited for this profession? A great place to start is with a CPA license or CMA certification. If your undergraduate degree was in accounting, you’ve undoubtedly heard these terms before. However, you may not be clear on how they differ and what makes them truly meaningful.
CMA vs CPA – Which Is Harder?
A CMA, on the other hand, is an accounting expert who specializes in budget or asset management, as the name implies. A CMA holds the skills needed to make strategic managerial decisions for a variety of organizations using their financial accounting knowledge. To maintain certification, one must maintain Institute of Management Accountants (IMA) membership and continuing education requirements.
CPA vs CMA Exam Difficulty
When considering CMA vs CPA, know that both certifications can lead to careers in accounting and outside of traditional accounting positions. Some of the traditional accounting paths for CPAs revolve around providing accounting services as a public accountant, internal auditor or corporate financial accountant. Only around half of the country’s accountants are CPAs, as it requires time, dedication, and commitment. For example, a prerequisite to taking the four-part exam is the successful completion of 150 credit hours in a higher education program. To maintain CPA certification accountants also need to complete 40 hours of continuing professional development usually every two years.
Since going for two designations will cost more than going for just one, you’ll want to ensure that you save costs wherever possible. That’s why you can find considerable CPA review discounts and CMA review discounts on my sites. For the CMA, you’re looking at around $1,475, maybe less if you’re a student. As you can see, it can be less for the CMA, or it could be right around the same cost for both of the exams, depending on different factors you can use to help you save more on the exams. At the end of the day, choosing between a CMA and CPA is a personal decision. Both are high-earning accounting careers with a ton of potential.
This is an official license that qualifies someone to practice public accounting. This is a certification that connects financial accounting and business leadership. You get a CMA through the Institute of Management Accountants (IMA).
All of this info should give you major insight into which of these is right for you. Accounting is one of the more popular career paths in the United States. Bureau of Labor Statistics, there are an estimated 1.4 million accountants currently practicing. However, there is still stiff competition for higher-level roles.
When compared to a CPA license, the Certified Management Accountant certification highlights the professional’s accounting and financial expertise within the corporate world. That is, the skills required for finance managers, controllers, and CFOs. It also touches upon the operational and strategic aspects of running a corporation, a non-profit, or a governmental agency. The CMA exam content is relevant to your decision because it indicates the valued proficiencies for this designation. Analysis and strategic thinking are key to earning the CMA designation.
Employers see the time, money and effort to acquire either the CPA and CMA certifications as a testament to an individual’s commitment to succeed as an accounting and finance professional. This demonstration of commitment, focused study and knowledge can even serve as the tiebreaker between two qualified candidates for a job. Once you have achieved either the CPA or CMA certification, you aren’t done with education! Both certifications have annual minimum continuing professional education (CPE) requirements. These requirements can be satisfied in many ways – seminars, online courses, self-study courses, etc.
Knowing which is right for you will come down to your personal interest and ambition. The CPA exam also has a registration fee that can vary by state. Once you’ve secured a spot, cma vs cpa each section of the CPA exam costs a little less than $200. Another important regulatory body you should know about is the Institute of Certified Management Accountants (ICMA).
CMAs can be found in the ranks of chief financial officers, chief operating officers and chief executive officers. Consider working with a financial advisor as you tackle difficult accounting challenges. See how Roger’s energy + UWorld’s revolutionary Qbank will help you pass the first time. The competencies covered on the CPA Exam are outlined in the AICPA blueprint.
Even when you’ve narrowed the focus of precisely what you need, you may still have trouble finding the right expert to help you. When it comes to various accounting experts, you might choose between a certified management accountant (CMA) and a certified public accountant (CPA). Here’s the difference between the two and how to determine which one is right for you.