C.M.A. or C.P.A.- This may be the most difficult decision to make for applicants seeking accounting certification. Given that you are making a significant decision, it is normal that you devote time and effort to deciding what is best for your future. If you choose between these two qualifications, this article will give you detailed information to make an important decision.
Why is there a need to get certified?
The first and foremost thing to keep in mind is why bother with certification at all? If you want to be an accountant, that’s straightforward enough because you’ll need a certificate as a C.P.A. at some point, which is usually when you’re promoted to audit manager.
If you’re not an auditor and work as an accountant in the industry, the situation is somewhat different. In this scenario, the actual question is when does a certification need start to appear on a job description? So, if you search up job descriptions for a bookkeeper, a cost accountant, or a general ledger accountant – virtually any staff position – you won’t find many that specify that the employee must have a certification.
What is CPA?
A Certified Public Accountant (C.P.A.) is an accounting practitioner who has passed the C.P.A. exam and complied with their state’s licensure criteria. A CPA’s primary responsibility is to analyze raw data and prepare detailed financial reports. Most states demand a bachelor’s degree and two years of work experience under the supervision of a certified C.P.A. to become a C.P.A.
What are the requirements?
A bachelor’s degree (with additional requirements in accounting and business-related college courses) and one or two years of experience working under the charge of a certified C.P.A. are necessary. These standards differ by state, so verify with your State Board of Accountancy and ensure your school is accredited.
Exams pass rate And Maintenance
Around 49 percent in 2016, almost 49% of students passed their exams. To keep your license, you must complete various continuing professional development levels (C.P.D.) — usually 40 hours per year, but this varies by state. Courses are available both online and on-site.
The Cost And The Benefits
Exam, application, and licensure fees, as well as a review course price (mid-range cost: Rs1,700) and an ethics exam (necessary in some states), can cost up to Rs3,000. The C.P.A. is frequently the most desirable qualification for public and corporate accounting roles.
What Is C.M.A?
The Certified Management Accountant certification is recognized worldwide for financial accounting and strategic management credentials. The Institute of Management Accountants offers this credential (I.M.A.). The requirements, format, and content of the C.M.A. exam are very different from the E.A. exam. So, let’s check the exams and how to prepare for them. To be eligible for the C.M.A., you must first qualify for the C.M.A. You can get ready by applying to the best CA Coaching classes.
Candidates must complete the following requirements to sit for the C.M.A. exam:
- Be an active member of the I.M.A.
- Pay an application fee to be accepted into the C.M.A. programme.
- Register for their first exam within 12 months of starting the C.M.A. programme.
Candidates have three years from enrolling in the C.M.A. programme to pass the two-part test. Additionally, within 7 years of completing the C.M.A. exam, candidates must complete the academic and job experience requirements.
Concerning the C.M.A. exam
The C.M.A. test is divided into two sections:
Part 1 of the C.M.A. programme covers financial planning, performance, and analytics.
Part 2 of the C.M.A. programme covers strategic financial management.
Each section lasts four hours and consists of 100 multiple-choice (MCQs) and two essay questions. And you’ll start with the MCQs in each section. You’ll be able to go on to the essays if you get at least 50% of the questions right. It makes no difference whatever component of the C.M.A. exam you start with first. You must, however, register for your first C.M.A. exam within 12 months of beginning the programme.
Getting through your examinations
The global success rate for the C.M.A. exam is only about 45-50 percent. However, depending on the exam portion and year, E.A. exam pass percentages range from 61 to 88 percent. Despite this, more E.A. applicants pass their tests than other accounting qualifications such as the C.P.A., C.M.A., and C.I.A.
However, once you begin taking the C.M.A. examinations, you only have a certain period to complete them. As a result, it’s best to study with a tried-and-true review course. Even though you’ll have to spend money on preparation supplies, it’s usually worth it in the long run. Furthermore, if you select an appropriate review course for your learning type like IPCC classes in Mumbai, you will most likely study more successfully, lowering your overall study time.
Key Differences C.P.A. vs. CMA
A CPA is a business auditor or regulator, whereas a C.M.A. is in charge of a company’s management. Financial Accounting and Reporting, Audit & Attestation, Business Environment and Concepts are topics covered in the C.M.A. programme. Financial Planning, Performance, Control and Financial Decision-making are all topics included in the C.M.A. programme. The C.M.A. programme takes six months to finish, while the C.P.A. programme takes 18 months.
Since they have access to government and private groups, C.P.A. has a more extensive training programme. As C.M.Ais mostly private organization, the training period is shorter.
The truth is that no matter where you sit on the C.M.A. vs. C.P.A. argument, you must make a significant commitment. You deserve the best financial return and the most job opportunities in exchange. Therefore it is advised to F.O.C.U.S. (focus on one course until success), which you can achieve by selecting your mentor. Suppose you believe that C.M.A. or C.P.A. is the appropriate path for you to take to begin your career. In that case, you’ll be better off getting certified than not getting certified, and as mentioned already it would be recommended to take the best CA Classes in Mumbai,to help you pass the exam as quickly as possible.