How to Decide Between Accounting Certifications ~ CPA vs. CMA

Certified accountants on average earn 27% more than non-certified accountants. If you’re in the accounting and finance profession, you’re bound to be compelled by that specific statistic. The Certified Public Accountant (CPA) designation is the most widely recognized certification, but the Certified Management Accountant (CMA) designation is running a close second. Which one should you pursue?

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Your state's specific CPA requirements
• www.imanet.org to view standard CMA requirements

1. First and foremost, consider the type of work you want to do or are currently doing. The CPA exam focuses on auditing and law, while the CMA exam concentrates on financial management, analysis, and strategy. If you are interested in working primarily in tax or auditing, a CPA is required. However, if you would rather work for a public or private business, a CMA is more tailored to these needs, though a CPA is always acceptable and sometimes preferred.
2. Consider the education requirements. For CPA’s, most states currently require 150 semester hours from an accredited institution with a concentration in accounting to sit for the exam. CMA’s are required to have a bachelor’s degree in any major from an accredited institution *or* to score in the 50% percentile or above on the Graduate Management Admission Test (GMAT) exam.
3. Consider the experience requirements. Although it varies from state to state, CPA’s are usually to have four years experience within ten years of passing the exam. CMA’s are required to have two consecutive years of related work experience within seven years of passing the exam.
4. Consider the exams. Both are administered via computer now, with multiple choice and type-written parts. I know people who have taken both exams and say the difficulty is comparable.
   
   The four parts of the CPA exam are: Auditing & Attestation, Financial Accounting and Reporting, Regulation, Business Environment & Concepts. CPA candidates must pass all parts within 18 months of passing the first exam.
   
   The four parts of the CMA exam are: Business Analysis, Management Accounting & Reporting, Strategic Management, Business Applications. CMA candidates must pass all parts within 4 years of passing the first exam.
5. Consider the continuing education requirements. CPA’s must earn 120 hours of CPE’s over a 3 year period, with a minimum of 20 CPE’s per year for practicing CPA’s. CMA’s must earn 30 hours of CPE’s each year, but may roll up to 10 hours over into a subsequent year.
6. Consider the pay. Entry level CPA’s earn from $31,500 - $51,250 while entry level CMA’s earn from $31,500 - $52,500. Senior level CPA’s earn from $70,000 - $300,000+ while senior level CMA’s earn from $62,000 - $358,750.

Tips & Warnings

• States that don't require 150 semester hours of education are: California, Colorado, Deleware, New Hampshire, Vermont, & the Virgin Islands.
• Again, each state has their own CPA requirements!