Definition
CMA (Certified Management Accountant) and CIMA (Chartered Institute of Management Accountants) are both globally recognized certifications in the field of management accounting. The CMA focuses on financial decision making, performance management, and financial reporting while the CIMA focuses on management functions, strategy, and decision-making. Essentially, while CMA is popular in the US and Middle East, CIMA is more recognized in Europe and Asia.
Key Takeaways
- CMA (Certified Management Accountant) and CIMA (Chartered Institute of Management Accountants) are both globally recognized qualifications in financial management and management accounting. However, CMA is more recognized in the USA while CIMA is more recognized in the UK and Commonwealth countries.
- The CMA certification focuses on the practical applications of financial modeling and investment management while the CIMA certification focuses more on strategic management aspects, covering subjects like strategic marketing, project and relationship management.
- The route to getting these certifications also varies, with the CMA certification generally requiring two years of relevant experience and passing two exam parts, whereas the CIMA certification involves passing 16 exams and three years of relevant practical experience.
Importance
The distinction between CMA (Certified Management Accountant) and CIMA (Chartered Institute of Management Accountants) is critical because they represent different educational and professional paths in the financial industry.
CMA is a U.S.-based global certification that focuses on management accounting and financial decision-making within organizations, while CIMA is a UK-based international qualification that emphasizes strategic business management and operational performance of organizations.
Understanding the differences between the two helps aspiring financial professionals choose the program of study and credentialing that best align with their career objectives and work environment, whether those are centered more on internal corporate financial management (CMA) or global strategic business performance (CIMA).
Explanation
The Certified Management Accountant (CMA) and Chartered Institute of Management Accountants (CIMA) serve different but related purposes within the broad field of finance. The CMA is a globally recognized certification that emphasizes financial management and strategic decision-making. A finance professional who earns the CMA qualification demonstrates expertise in areas like financial planning, analysis, control and decision support, which are vital for many corporate finance roles.
The intent of the CMA certification is to prepare finance professionals to contribute to the strategic decision-making process within businesses and drive operational success. On the other hand, the CIMA qualification caters to individuals who want to thrive in management and strategy roles. The CIMA qualification has a strong emphasis on management functions, strategy, risk management, and organizational relationship building.
It is a rigorous program that involves mastering complex strategic financial and business management skills. Therefore, it is hugely respected in roles where strategic business decision making and management are essential. Both the CMA and CIMA certifications are geared towards building finance professionals’ skills for roles beyond traditional accounting, and both add valuable insights to strategic business decisions.
However, the choice between the two would largely depend on the career path one aims to follow.
Examples of CMA vs CIMA
The finance terms CMA (Certified Management Accountant) and CIMA (Chartered Institute of Management Accountants) refer to two professional qualifications in the field of financial and management accounting. Both certifications aim to equip professionals with extensive knowledge on management and financial accounting, but there are differences in their focus, recognition, geographic preference and course structure. Here are three examples demonstrating these differences:
Focus of Studies: CMA is more focused on financial analysis, strategic management, and decision-making, making it suitable for those who want to specialize in corporate finance. For instance, a financial advisor for a company in the United States may pursue a CMA certification to enhance their ability to analyze financial performance, control costs, and make strategic financial decisions. CIMA, on the other hand, covers a broader range of topics including business strategy, risk management, project management along with financial accounting, making it ideal for those interested in a broad management role. A senior manager at a multinational company based in the UK might opt for CIMA certification to acquire advanced skills in strategic decision-making and managing business operations.
Recognition: A professional with a CMA qualification might be preferred by a USA-focused corporation looking for professionals to handle financial control, planning, and analysis, given that CMA is a globally recognized but particularly well-respected certification in the USA and Asia. Conversely, a global company with a significant presence in the UK might prefer hiring a candidate with a CIMA qualification, as it’s a globally known qualification with a particular standing in UK and Commonwealth nations.
Geographic Preference: If an Indian finance professional is planning to migrate to the United States and aiming for a management role in a mid-sized or large company, the individual might choose to pursue CMA as it is well-recognized in the United States. If a South African finance professional is seeking career growth opportunities in the UK or other Commonwealth countries, getting a CIMA may be the path to choose. This is because businesses in these regions tend to prefer the broader managerial and strategic skills imparted by the CIMA certification.
FAQs: CMA vs CIMA
What is the CMA?
The Certified Management Accountant (CMA) is a professional certification in the field of financial management and management accounting. This certification signifies expertise in strategic management and financial planning, analysis, control, and decision support.
What is the CIMA?
The Chartered Institute of Management Accountants (CIMA) is a UK-based professional body offering training and qualification in management accountancy and related subjects. It provides a particular emphasis on strategic business skills.
Which certification has a broader global recognition: CMA or CIMA?
While both CMA and CIMA have global recognition, CIMA is more recognized in the UK and Commonwealth countries, and the CMA is more recognized in the USA and other parts of the world.
What are the job prospects after completing CMA or CIMA?
Both CMA and CIMA certified professionals can work in a variety of roles such as Finance Manager, Financial Analyst, Financial Controller, and several others. The choice between CMA and CIMA often depends on the specific job market and individual career goals.
On average, how much time does it take to complete the CMA and CIMA?
Generally, it takes about 12-18 months to complete the CMA certification. For CIMA, it varies greatly depending on the student’s background, but typically it takes 3 to 4 years.
What are the costs associated with the CMA and CIMA certifications?
The costs for CMA certification include an entrance fee and examination fee, which can total around $1000. The CIMA costs include registration, exams, and exemption fees, which can range from $1500 to $2500, depending on the level of examinations.
Related Entrepreneurship Terms
- Certified Management Accountant (CMA): This refers to a certification for accounting professionals that focuses on financial planning, analysis, control, and decision support. It’s offered by the Institute of Management Accountants (IMA) from the USA.
- Chartered Institute of Management Accountants (CIMA): CIMA is a professional body offering training and qualification in management accountancy and related subjects. It is focused on the training and qualifying of accountants in business, industry, and the public sector.
- Accreditation: This is relevant to both CMA and CIMA as both are professional designations that require a certain level of academic and practical experience, as well as passing relevant examinations.
- Management Accounting: Both CMA and CIMA designations are specialized in management accounting which combines accounting, finance and management with the business skills and techniques for planning and control.
- Ethics: Both CMA and CIMA designations require understanding and application of professional ethics and standards.
Sources for More Information
- American Institute of CPAs: This professional organization provides information about various accounting qualifications, including the CMA and CIMA certifications.
- Institute of Management Accountants: The IMA is the organization that offers the CMA certification and provides detailed information about it.
- Chartered Global Management Accountant: The CGMA is a designation managed in a joint venture between the AICPA and CIMA, providing details about the CIMA certification.
- Investopedia: Investopedia has numerous resources about finance and accounting terms, including clear, easy-to-understand articles about both CMA and CIMA.
