Differences between CPA, CMA and CFA (CPA vs CMA vs CFA)
The major difference in professionals with a Certified Public Accountant, Certified Management Accountant, or Chartered Financial Analyst certification lies in their expertise area. While a US CPA specializes in finance and general accounting, a US CMA is excellent in management accounting and a CFA in investment and finance services. In the context of US CPA vs US CMA vs CFA, although these professionals function in the domain of finance, each possesses several skill sets.
Certified Public Accountants primarily provide auditing, taxation, and accounting services. Chartered Financial Analyst (CFA) certification holders deal with hedge funds, investment management, and equity research, while Certified Management Accountants (CMA) handle strategic planning, and cost and inventory accounting. Kindly note that US Certified Public Accountant (US CPA) is recognized globally.
CPA vs CMA vs CFA – Comparative Table:
| Particulars | US CPA | US CMA | CFA |
| Focus Area | All aspects of accounting and finance | Management accounting | Portfolio management and investment analysis |
| Certification issued by | AICPA (American Institute of Certified Public Accountants) | IMA (Institute of Management Accountants) | CFA institute |
| Career Opportunities | Senior Financial Analyst, Public Accountants, Staff Accountants, Personal Financial Advisor, Finance Director, Corporate Controller, others. | Relationship Manager, Senior Accountant, Cost Accountant, Finance Manager, Business Analyst | Portfolio Manager, Consultant Research Analyst, Investment Analyst Strategist, Wealth Manager, Chief Investment Officer. |
| Exam Levels | Four sections | Two parts | Three levels |
| Required Work Experience | 1 – 2 years of experience | 2 years of experience | 4,000 hours of work experience |
| Educational Requirements | Bachelor’s Degree (along with 150 hours of education) | Professional Accounting Certification/Bachelor’s Degree | Bachelor’s Degree |
| Exam Fees | Around $800 for application fees and four sections excluding registration | CMA exam fee $415 per part and CMA entrance fee $250 | $2400 to $4590 |
| Pass Rate | 50% (Average) | CMA Part 1 – 34% and CMA Part 2 – 46% | 40-50% |
| Average Salary | $82,000-$1,29,000 | $76,000-$1,33,000 | $1,26,000-$1,77,000 |
| Skills Required | Research and Problem-solving skills, Accounting skills Analytical skills, Broad business perspective skills, Communication skills, High ethical standards, and Project management skills. | Analytical skills, Decision-making skills, Communication skills, Interpersonal skills, Leadership skills, and Management skills. | Time Management skills, Decision-making skills, Analytical skills, Research skills. |
Certified Public Accountant (CPA), Certified Management Accountant (CMA), and Chartered Financial Analyst (CFA) are the most sought-after professional credentials in the business world.
The professionals with these certifications command a higher salary, a professional edge over others in the finance and accounting domain, and better career prospects. To attain a better understanding, let’s discuss each term. Let’s start with Certified Public Accountant (CPA).
What is a Certified Public Accountant (CPA)?
A US CPA is a licensed accounting professional who has cleared the uniform CPA exam and met the state boards’ required education and experience. The National Association of State Boards of Accountancy (NASBA) coordinates with the American Institute for Certified Public Accountants (AICPA) to conduct this exam and issue the license.
You can consider Certified Public Accountants as the crop cream in the profession of accounting. A US CPA license ensures expertise and credibility in the profession. Getting the US CPA certification paves countless opportunities and road to a rewarding finance career.
Unlike the other certified professionals, the Certified Public Accountants (CPAs) offer a wide range of many other services apart from financial consulting. It includes auditing, accounting, tax filing, and tax preparation. Hence, they can act as auditors, accountants, forensic accountants, tax professionals, Chief Financial Officers (CFOs), or business consultants.
To attain the US CPA license, you must:
1. Clear the uniform CPA exam.
2. Fulfill the professional experience requirement.
3. Meet educational standards specified by the state accountancy board.
4. Pass the ethics exam.
The US CPA exam consists of four sections. You must have to clear all four sections in the period of 18 months. The candidate can take the exam anytime during the year with the continuous testing model. Check the NASBA website to apply for the US CPA exam.
What is a Certified Management Accountant (CMA)?
US CMA is a globally recognized credential for finance professionals specializing in management accounting. IMA confers the US CMA certification.
One of the major roles of a US CMA certification holder is to prepare business reports for assisting management in decision making. A Certified Management Accountant specializes in budgeting, financial planning, cost control, business analysis, and strategic decision-making.
A US CMA has the right blend of accounting and business expertise in evaluating the financial situation of a firm and making good business decisions. This ability of strategic decision-making empowers the US CMA to take up the positions of leadership effortlessly.
To become a US Certified Management Accountant (US CMA), the candidate has to do the following:
1. Enroll as a member of the Institute of Management Accountants (IMA).
2. Submit the entrance fees for the US CMA exam.
3. Fulfill the requirements of work experience.
4. Meet the educational requirements.
5. Clear the US CMA exam.
6. Abide by the ethical professional practice policy of the Institute of Management Accountants (IMA).
7. Finish 30 hours of Continuing Professional Education (CPE), including two hours of ethics.
To take the US CMA exam, the candidate must have a professional accounting certification or a bachelor’s degree in accounting along with two continuous years of work experience in the field of management or financial accounting. The US CMA consists of two exam parts. It takes 12 to 18 months to clear both parts. The candidate is allowed a maximum of 3 years to finish it.
What is a Chartered Financial Analyst?
Chartered Financial Analyst (CFA) is a certified professional specializing in investment and financial management services. After the completion of the CFA program, the CFA institute grants this certification.
CFA certification holders can work as money managers, investment managers, portfolio managers, asset managers, risk managers, research analysts, or entrepreneurs. Also, they can expand their career horizon by holding senior-level or executive positions.
To become a Chartered Financial Analyst (CFA), a candidate should:
1. Enroll in the CFA program.
2. Clear the CFA examination.
3. Meet the requirement of work experience.
4. Become a Chartered Financial Analyst (CFA) on acceptance of the application.
The CFA exam consists of 3 levels. The candidate can take each level twice a year with six attempts maximum for each level.
Conclusion:
This is an article comparing CPA, CMA, and CFA. Here, we have discussed the key differences between all these three certifications. Any questions? Contact Hi-Educare.
Call: +91 6361515064 | +91 9739177769
Email: info@hi-educare.com
Visit: https://hi-educare.com/
The major difference in professionals with a Certified Public Accountant, Certified Management Accountant, or Chartered Financial Analyst certification lies in their expertise area. While a US CPA specializes in finance and general accounting, a US CMA is excellent in management accounting and a CFA in investment and finance services. In the context of US CPA vs US CMA vs CFA, although these professionals function in the domain of finance, each possesses several skill sets.
Certified Public Accountants primarily provide auditing, taxation, and accounting services. Chartered Financial Analyst (CFA) certification holders deal with hedge funds, investment management, and equity research, while Certified Management Accountants (CMA) handle strategic planning, and cost and inventory accounting. Kindly note that US Certified Public Accountant (US CPA) is recognized globally.
CPA vs CMA vs CFA – Comparative Table:
| Particulars | US CPA | US CMA | CFA |
| Focus Area | All aspects of accounting and finance | Management accounting | Portfolio management and investment analysis |
| Certification issued by | AICPA (American Institute of Certified Public Accountants) | IMA (Institute of Management Accountants) | CFA institute |
| Career Opportunities | Senior Financial Analyst, Public Accountants, Staff Accountants, Personal Financial Advisor, Finance Director, Corporate Controller, others. | Relationship Manager, Senior Accountant, Cost Accountant, Finance Manager, Business Analyst | Portfolio Manager, Consultant Research Analyst, Investment Analyst Strategist, Wealth Manager, Chief Investment Officer. |
| Exam Levels | Four sections | Two parts | Three levels |
| Required Work Experience | 1 – 2 years of experience | 2 years of experience | 4,000 hours of work experience |
| Educational Requirements | Bachelor’s Degree (along with 150 hours of education) | Professional Accounting Certification/Bachelor’s Degree | Bachelor’s Degree |
| Exam Fees | Around $800 for application fees and four sections excluding registration | CMA exam fee $415 per part and CMA entrance fee $250 | $2400 to $4590 |
| Pass Rate | 50% (Average) | CMA Part 1 – 34% and CMA Part 2 – 46% | 40-50% |
| Average Salary | $82,000-$1,29,000 | $76,000-$1,33,000 | $1,26,000-$1,77,000 |
| Skills Required | Research and Problem-solving skills, Accounting skills Analytical skills, Broad business perspective skills, Communication skills, High ethical standards, and Project management skills. | Analytical skills, Decision-making skills, Communication skills, Interpersonal skills, Leadership skills, and Management skills. | Time Management skills, Decision-making skills, Analytical skills, Research skills. |
Certified Public Accountant (CPA), Certified Management Accountant (CMA), and Chartered Financial Analyst (CFA) are the most sought-after professional credentials in the business world.
The professionals with these certifications command a higher salary, a professional edge over others in the finance and accounting domain, and better career prospects. To attain a better understanding, let’s discuss each term. Let’s start with Certified Public Accountant (CPA).
What is a Certified Public Accountant (CPA)?
A US CPA is a licensed accounting professional who has cleared the uniform CPA exam and met the state boards’ required education and experience. The National Association of State Boards of Accountancy (NASBA) coordinates with the American Institute for Certified Public Accountants (AICPA) to conduct this exam and issue the license.
You can consider Certified Public Accountants as the crop cream in the profession of accounting. A US CPA license ensures expertise and credibility in the profession. Getting the US CPA certification paves countless opportunities and road to a rewarding finance career.
Unlike the other certified professionals, the Certified Public Accountants (CPAs) offer a wide range of many other services apart from financial consulting. It includes auditing, accounting, tax filing, and tax preparation. Hence, they can act as auditors, accountants, forensic accountants, tax professionals, Chief Financial Officers (CFOs), or business consultants.
To attain the US CPA license, you must:
1. Clear the uniform CPA exam.
2. Fulfill the professional experience requirement.
3. Meet educational standards specified by the state accountancy board.
4. Pass the ethics exam.
The US CPA exam consists of four sections. You must have to clear all four sections in the period of 18 months. The candidate can take the exam anytime during the year with the continuous testing model. Check the NASBA website to apply for the US CPA exam.
What is a Certified Management Accountant (CMA)?
US CMA is a globally recognized credential for finance professionals specializing in management accounting. IMA confers the US CMA certification.
One of the major roles of a US CMA certification holder is to prepare business reports for assisting management in decision making. A Certified Management Accountant specializes in budgeting, financial planning, cost control, business analysis, and strategic decision-making.
A US CMA has the right blend of accounting and business expertise in evaluating the financial situation of a firm and making good business decisions. This ability of strategic decision-making empowers the US CMA to take up the positions of leadership effortlessly.
To become a US Certified Management Accountant (US CMA), the candidate has to do the following:
1. Enroll as a member of the Institute of Management Accountants (IMA).
2. Submit the entrance fees for the US CMA exam.
3. Fulfill the requirements of work experience.
4. Meet the educational requirements.
5. Clear the US CMA exam.
6. Abide by the ethical professional practice policy of the Institute of Management Accountants (IMA).
7. Finish 30 hours of Continuing Professional Education (CPE), including two hours of ethics.
To take the US CMA exam, the candidate must have a professional accounting certification or a bachelor’s degree in accounting along with two continuous years of work experience in the field of management or financial accounting. The US CMA consists of two exam parts. It takes 12 to 18 months to clear both parts. The candidate is allowed a maximum of 3 years to finish it.
What is a Chartered Financial Analyst?
Chartered Financial Analyst (CFA) is a certified professional specializing in investment and financial management services. After the completion of the CFA program, the CFA institute grants this certification.
CFA certification holders can work as money managers, investment managers, portfolio managers, asset managers, risk managers, research analysts, or entrepreneurs. Also, they can expand their career horizon by holding senior-level or executive positions.
To become a Chartered Financial Analyst (CFA), a candidate should:
1. Enroll in the CFA program.
2. Clear the CFA examination.
3. Meet the requirement of work experience.
4. Become a Chartered Financial Analyst (CFA) on acceptance of the application.
The CFA exam consists of 3 levels. The candidate can take each level twice a year with six attempts maximum for each level.
Conclusion:
This is an article comparing CPA, CMA, and CFA. Here, we have discussed the key differences between all these three certifications. Any questions? Contact Hi-Educare.
Call: +91 6361515064 | +91 9739177769
Email: info@hi-educare.com
Visit: https://hi-educare.com/
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