Cpa Vs Cma

The CMA exam is designed for accountants who do not want to work directly with the public. Accountants who choose the CMA exam usually want to work for global corporations or in large financial departments. The CMA, or Certified Management Accountant exam, is popular among accountants who want managerial or executive jobs. Even though the CMA exam usually doesn’t require a graduate degree, many CMAs earn an MBA specializing in cma vs cpa accounting or earn a Master of Science in Accounting. Instead of a graduate degree, CMA exam candidates must submit evidence of two years of experience working under the supervision of a CMA in managerial accounting. CMA exam candidates must be active members of the Institute of Management Accountants. Those who fail to engage in the continuing education requirement of 30 credits every year will lose their CMA designation.

After being certified, a CPA needs to complete 40 hours of Continuing Education every year. A CMA needs to complete 30 hours of Continuing Education every year to maintain their respective certifications. One main difference between a CPA and CMA license is that they lead to very different prepaid expenses careers. Those who earn a CPA generally work for public accounting firms and those who earn a CMA credential generally work for private firms. The CMA exam is divided into two parts and the CPA exam is divided into four parts. Both the CPA and CMA exam cost about the same in every state.

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The CPA certification produces Certified Public Accountants who handle audits, income taxes and financial reporting. This certification prepares accountants for customer service roles in small firms and large corporations. Eligibility for the CPA certification varies between states, but almost all require at 150 hours of business or accounting-related coursework. Because 120 credit hours results cma vs cpa in a standard bachelor’s degree, most CPA exam candidates are students who graduate with a master’s degree related to accountancy. Exam candidates must submit a resume that usually demonstrates two years of supervised public accounting experience. Exam candidates cannot have any ethical investigations or serious performance issues. The CPA exam is one of the toughest professional exams to pass.

• This certification prepares accountants for customer service roles in small firms and large corporations.
• Because 120 credit hours results in a standard bachelor’s degree, most CPA exam candidates are students who graduate with a master’s degree related to accountancy.
• The CPA certification produces Certified Public Accountants who handle audits, income taxes and financial reporting.
• Eligibility for the CPA certification varies between states, but almost all require at 150 hours of business or accounting-related coursework.

Both function as accountants but with a difference in approach. A CPA certified person generally works in tax and auditing, adjusting entries while a CMA certified person works as a management accountant responsible for the cost and financial analysis.

Difference 2: The Requirements Needed For Each Certification

Somewhere between 30 to 40 percent of test takers pass the CMA, but between 40 to 50 percent pass the CPA. The CMA credential requires around 30 Continuing Professional Education hours per year, but the CPA credential requires around 40 per year. The CMA exam requires two years of professional https://simple-accounting.org/ experience to become fully licensed. The CPA exam varies by state because a few only require one year of experience. One of the major career decisions that an accounting student has to make is whether to pursue Certified Public Accountant or Certified Management Accountant .

As far as eligibility is concerned, both CPA and CMA require a candidate to have a bachelor’s degree or related professional certification. Besides, bookkeeping CPA requires two years of public accounting experience, while CMA requires two years of management accounting or financial management experience.