Definition
CMA, which stands for Certified Management Accountant, refers to a professional certification in financial management and management accounting that involves strategic management and decision-making skills. On the other hand, ACCA, or Association of Chartered Certified Accountants, is a global professional body offering qualification in accounting, business and finance, aimed to provide fundamental knowledge on these areas. Both offer different areas of expertise and are highly regarded in the fields of accounting and finance.
Key Takeaways
- CMA (Certified Management Accountant) and ACCA (Association of Chartered Certified Accountants) are both globally recognized professional qualifications in finance, but they focus on different areas. CMA primarily focuses on management accounting and corporate finance, while ACCA covers a broad range of financial topics.
- The CMA certification is ideal for professionals who want to specialize in cost management, corporate finance, and strategic management, whereas the ACCA certification offers a more comprehensive understanding of accounting principles, thus is suitable for those aiming for roles in auditing, taxation, and consulting.
- ACCA usually takes a longer time to complete with its 13 exams, compared to only 2 exams for the CMA. However, the ACCA allows for more flexibility, allowing candidates to take the exams at their own pace over a 10-year period, while CMA requires the completion of both parts within 3 years.
Importance
The distinction between CMA (Certified Management Accountant) and ACCA (Association of Chartered Certified Accountants) is crucial due to their different areas of expertise in the financial field. CMA is a globally recognized certification primarily for corporate accounting management, focusing on areas such as strategic management, reporting, decision-making, and financial planning.
However, the ACCA is a more comprehensive certification that covers a broader range of subjects including taxation, auditing, and financial management. This certification is recognized worldwide and is typically favored by those wanting a career in public accounting.
Therefore, the importance of these two depends on an individual’s career goals and desired area of expertise in finance.
Explanation
The Certified Management Accountant (CMA) and the Association of Chartered Certified Accountants (ACCA) are both globally recognized certifications in the field of finance and accounting. Each plays a different role, designed to match specific career ambitions in these fields.
The CMA targets management accounting and financial management aspects, concentrating on internal company financial management. It is widely regarded in fields like risk management, financial planning, analysis, control, and decision support, which are typically roles of a CFO or Financial Controller.
On the other hand, ACCA caters to all areas of business, but it is more specialized in auditing, taxation, and financial management and reporting. The ACCA certification is typically suited for individuals who are looking to advance in their careers as auditors, consultants, or tax experts.
Examples of CMA vs ACCA
CMA (Certified Management Accountant) and ACCA (Association of Chartered Certified Accountants) are two prestigious qualifications in the field of accounting and finance. They differ in various ways and may be more or less suitable for certain career paths.
Example 1: Corporate FinanceA person working in a corporation’s finance department may choose to obtain a CMA certification. The training and exam preparation for this certification involve modules primarily focused on cost management, corporate finance, and strategic management. Therefore, the CMA qualification is often more relevant to people who are employed in sectors where these areas are essential, such as in manufacturing companies or corporations.
Example 2: Audit and Assurance On the other hand, someone looking to work in audit and assurance services would probably prefer the ACCA certification. The ACCA is organized by a global body and is recognized in many countries. It provides a broad spectrum of financial knowledge, with a more significant emphasis on auditing and taxation. Therefore, someone working in an international audit firm would benefit more from an ACCA qualification.
Example 3: Career Progression in Different FieldsFor someone aspiring to be a financial controller or financial director, the CMA certification would be more relevant as it is directly related to internal business processes, decision making, and strategic planning. However, for those aiming to climb the ladder in an accounting firm or consultancy to become a partner, ACCA might be the more suitable choice as it offers broader accounting knowledge and skills.
Frequently Asked Questions: CMA vs ACCA
What is CMA?
The Certified Management Accountant (CMA) is a professional certification credential in the management accounting and financial management fields. The certification signifies that the person possesses knowledge in the areas of financial planning, analysis, control, decision support, and professional ethics.
What is ACCA?
The Association of Chartered Certified Accountants (ACCA) is a global professional accounting body offering the Chartered Certified Accountant qualification. It is recognized for its strong focus on professional values, ethics, and governance.
Can I do ACCA after CMA or vice versa?
Yes, you can pursue ACCA after completing CMA, or vice versa. Both qualifications complement each other as they focus on different areas of accounting and finance. Completing both can enhance your career prospectives.
Which one is more globally recognized, CMA or ACCA?
Both CMA and ACCA have global recognition. The ACCA is more recognized in countries where UK GAAP and IFRS are followed, while the CMA is more recognized in countries where US GAAP is followed.
What kind of jobs will CMA and ACCA prepare me for?
The CMA certification prepares you for roles such as Cost Accountant, Financial Controller, Treasurer, and CFO. On the other hand, the ACCA qualification can lead you into roles such as Auditor, Consultant, Financial analyst, Tax advisor, etc.
Related Entrepreneurship Terms
- Certified Management Accountant (CMA): A globally recognized certification for individuals who wish to specialize in management accounting and strategic business management.
- Association of Chartered Certified Accountants (ACCA): A global professional accounting body offering the Chartered Certified Accountant qualification, encompassing areas of audit, taxation, and corporate law.
- Professional Competency: In both CMA and ACCA, individuals need to demonstrate their professional competence, either in earning the certification or in maintaining it through continuous professional development.
- Global Recognition: Although both CMA and ACCA have global recognition, they have different levels of prestige and acceptance in different countries. CMA is widely recognized in the USA and ACCA is more recognized in Europe, Asia, and Africa.
- Examination Process: Both CMA and ACCA have a rigorous examination process aimed to test the candidate’s understanding in areas pertinent to their respective fields.
Sources for More Information
- Institute of Management Accountants (IMA): This is the official organization that offers the CMA (Certified Management Accountant) certification. They have comprehensive information about the CMA credential.
- Association of Chartered Certified Accountants (ACCA): This is the official website of the ACCA. Here, you can find in-depth information about the ACCA qualification and updates in the field.
- The American Institute of CPAs (AICPA): Although this site focuses on the CPA certification, it also provides valuable comparisons and insights into other financial certifications, including both CMA and ACCA.
- Investopedia: This website offers various articles and resources that provide clear and detailed comparisons between CMA and ACCA, along with other finance-related terms.
