Which Qualification is Better & Feasible among CPA & CMA or both?
The business skills are changing and what you are an expert today may be of no use tomorrow. Placing higher performer in a higher managerial role is a traditional method of placement, but research shows that only one third of individuals placed this way succeed in their new role. The main reason behind this is either they lack skill or are not competent to carry out the responsibilities that their new role expects. This is because they are unable to apply their experience and knowledge to their new job placement. This clearly states the importance of acquiring professional skills. For meaningful allocation of your resources and acquired knowledge what you need is to understand the difference between the CPA and CMA.
Now, here is the important decision to make.
Should you to study CPA or CMA? Even to do both the courses one after another.
Overview of CPA & CMA.
CPA stands for Certified Public Accountant. It is said to as “BLACK BELT” for Public Accounting Professionals in General.The subject itself covers a broad range of Knowledge, ranging from the core Financial Accounting and Auditing, as well as Business Laws and Ethics, Taxations, Cost Accounting and Strategic Planning, Statistics, Economics and difference between the US and International Accounting Systems.
CMA stands for Certified Management Accountant. With comparing to CPA, this certification highlights the Professional’s Accounting and Financial Expertise within the Corporate World. That is, the skills required for Controllers, Finance Managers and CFOs. It also explains the Operational and Strategic aspects of running a Corporation, a Governmental Agency or a Non-Profit Agency.
The CMA assists in making you an expert in the field of Financial Accounting and Strategic Management that includes Planning, Organization and effective execution of Resources and Policies. In short, it enhances your Managerial Skills, whereas CPAs knowledge restricts to making Business Decisions based upon Financial Information that is provided by the Company. Its Tax work revolving around the Finances of the Companies. The role of both the Accountant is different and very much depends on the selection and interest of the aspirant as to in which field he wish to go.
What is the difference between Public Accounting and Management Accounting?
Financial Accounting is concerned with providing information about a Company’s Operations to parties external to the Company. Examples include the IRS, bankers, Suppliers, Creditors and Shareholders. A primary focus is on standardized reporting and achieving compliance with Applicable Regulations.
Management Accounting is concerned with providing Financial Information about a Company’s Operations to its Internal Managers. The focus is on developing relevant and timely information that helps Internal Managers resolve the Problems. It also helps make decisions that arise on a Day-to-Day basis.
The debate between CPA vs CMA is a huge one for accountants, since these exams quite literally determine the type of work that professionals will be qualified to perform regarding advancement in their career growth. Though the CPA is perhaps the most popular accounting certification in now a day’s marketplace As accountants consider how they plan to define the next phase of their career in these fields, they should be wise to consider the differences between CPA and CMA certifications, and how those differences might transform their career prospects in a long run.
The CPA and CMA certifications both allow accountants to maximize their career earnings and their advancement potential in their respective professional field. Even though, both exams cost a significant amount of money, both in the initial fee and in ongoing professional development afterward. With pass rates for each exam that barely reach 50 percent, the real decision in a CPA vs CMA comparison should be on which exam is most rewarding, easier to pass, and more affordable to maintain and sustain in long run.
There is no reason why you can’t have both. CPAs will find that additional management training makes them more marketable to industry. If you are a CMA, and your jobs duties involve overseeing your company’s taxes, for example, the additional knowledge gained by becoming a CPA could be beneficial. Likewise, if you need to shore up your auditing or reporting skills.
Not that a lot of careers or jobs will require both of these designations, it’s a huge benefit to have both when pursuing a career in executive level management in a bbig reputed financial organization in the market.