CPA professionals usually pursue the career of an accountant or financial advisor. Some of the most common job profiles that CPAs go for include public accountants, management accountants, internal auditors,s, etc. On the other hand, CMA-certified professionals intend to work for large corporations, and some of their common job profiles include cost accountants, consultants, financial risk managers, etc. Over the course of a career, the average salary of a CPA hovers around $120,000, while that of a CMA is around $100,000. CMAs, while also enjoying lucrative career prospects, often see their highest earning potential in roles that emphasize strategic financial management and business decision-making. However, as they advance to positions like FP&A manager or corporate strategist, their salaries can rise significantly, often exceeding $90,000.
CPA vs CMA: Key Differences, Exams, and Career Insights
The certification is primarily issued in the United States but is valued internationally, particularly in industries requiring advanced accounting and financial skills. Choosing between CMA vs CPA depends on your interests, goals, and resources. Both certifications offer exceptional opportunities in accounting and finance. Whether you’re passionate about financial reporting or strategic financial planning, there’s a path for you.
Decision Factors:
- The CMA course, on the other hand, focuses on financial management, cost accounting, and performance management.
- In closing, whether you choose CPA or CMA, each path offers unique advantages tailored to different career aspirations in the accounting world.
- The CMA’s focus on management accounting and strategic decision-making might offer a slight advantage in a future dominated by data and AI.
- If you choose wisely based on your career goals, either certification can transform your trajectory.
- You can quickly do the math how on that difference compounds over a year career and what that means for the wealth you can create for your beneficiaries.
For 2025, accounting career paths that include certified professionals are expanding into diverse industries such as corporate finance, financial planning, risk management, and consulting services. This article will help you make an informed decision based on your career goals, interests, and the time and financial investment you’re ready to commit. The CPA and CMA designations cater to distinct professional focuses within the accounting and finance fields. A CPA is often seen as the gold standard for public accounting, emphasizing auditing, tax, and regulatory compliance. This certification is highly regarded for roles that require a deep understanding of financial reporting and external auditing. CPAs are frequently employed by public accounting firms, government agencies, and corporations that need to ensure their financial statements adhere to strict regulatory standards.
Consequently, the salary for an accountant with CPA and CMA is more likely to be impacted by their role / position cma vs cpa rather than having both certifications. One way we can measure and compare the difficulty between the CPA vs CMA exams is by comparing the CPA and CMA pass rates. Historically, the CMA pass rate was roughly 45% while that of the overall CPA exams was closer to 54%.
- The CPA course is divided into four parts – Business Environment & Concepts (BEC), Financial Accounting & Reporting (FAR), Audit & Attestation (AUD), and Regulation (REG).
- In the CMA vs CPA journey, there’s no “better” option—only the one that fits your dream.
- Both professions require at least a bachelor’s degree in accounting or a related field, but additional coursework and experience are required to become licensed or certified.
- On the other hand, the CMA designation is more focused on management accounting and may not be as well-known internationally.
To become a CPA, you need a bachelor’s degree in accounting, along with at least 150 hours of related coursework. CPA professionals, on average, earn more, particularly in audit and tax jobs. CMA professionals who transition into upper management or CFO roles, however, can also earn high salaries.
Can You Get Both CMA and CPA?
Both professions require at least a bachelor’s degree in accounting or a related field, but additional coursework and experience are required to become licensed or certified. For CMAs, the educational requirements include a bachelor’s degree from an accredited institution or a recognized certification. Candidates must also have at least two years of work experience in management accounting, financial management, or a related field. They are required to pass a two-part exam that covers topics such as financial reporting, planning, analysis, and control.
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The Institute of Management Accountants (IMA) oversees the CMA certification, which emphasizes strategic management, financial planning, and analysis. The CMA exam is divided into two parts, covering topics such as financial reporting, planning, performance, and control, as well as financial decision-making. Both the Certified Management Accountant (CMA) and Certified Public Accountant (CPA) designations are highly respected in the accounting profession, but they serve different purposes. The CMA certification focuses on management accounting and is ideal for professionals looking to advance their careers in corporate finance or management roles. On the other hand, the CPA certification is more broad and covers a wider range of accounting topics, making it suitable for those interested in public accounting, auditing, or tax services. Ultimately, the choice between CMA and CPA depends on an individual’s career goals and interests within the accounting field.
You could make a counter argument that CMA’s three year window to pass makes it easier than the 30 month window that applies to the CPA exam. Choosing between a CPA (Certified Public Accountant) and CMA (Certified Management Accountant) designation can significantly impact your career trajectory in the accounting and finance sectors. Each certification offers unique advantages, tailored to different professional paths and skill sets. Financial analysis and reporting are integral to both CPA and CMA roles, though the focus and application of these skills differ. CPAs are often involved in preparing and reviewing financial statements, ensuring that they comply with Generally Accepted Accounting Principles (GAAP) and other regulatory standards.
While the average CPA salary appears to be slightly higher than a CMA salary, keep in mind that the CPA license tends to be more popular in the U.S., whereas the CMA license is more common among non-U.S. Therefore, the number of CMAs used to calculate these figures is substantially smaller than the CPA salary dataset. Those with a CMA credential have a large choice of career possibilities such as Cost Accountant, Risk Manager, Chief Financial Officer, and more.
Colin is a practicing CPA with over 14 years of experience in various accounting and finance roles. Manager level at a Big-4 firm, he now works as a freelance consultant while helping others pass their professional exams. While CPAs are well equipped for management positions, their skill sets as business managers are more or less learned on the job. The CPA exam itself does not include a substantial amount of testing over management accounting concepts the way the CMA exam does. For example, if you are already working in a corporate accounting role in management accounting, the CMA exam topics may be easier to grasp than the range of CPA exam topics.
It is fair to say that both course exams are challenging, given the historically low passing rates. In the CMA exams conducted during January-February 2020, only 45% of the candidates worldwide could clear both Parts I and Part II . On the other hand, the below table captures the outcome of CPA exams conducted during the year 2020 . That being said, there are two pieces to the investment you have to make to obtain either certification. There’s the initial investment of taking the exam itself and there’s the ongoing cost.