What is the CPA certification?

The Certified Public Accountant (CPA) certification is a prestigious and globally recognized credential for accounting and finance professionals. It signifies expertise in financial management, auditing, taxation, and business strategy, as well as adherence to high ethical standards. The certification is primarily issued in the United States but is valued internationally, particularly in industries requiring advanced accounting and financial skills.

What is the CMA Certification?

The Certified Management Accountant (CMA) certification is a globally recognized credential that demonstrates expertise in financial management, strategic management, and managerial accounting. It is designed for professionals who aim to excel in roles that involve decision-making, financial strategy, and business leadership within organizations. The certification is administered by the Institute of Management Accountants (IMA), a professional organization based in the United States, with a strong international presence.

Comparing the CPA and CMA Certifications

There are several differences between the CPA and CMA certifications, which we outline below:

Public awareness. The CPA certification is generally better-known. The marketing budgets of the organizations that sponsor these certifications are quite different in size. The AICPA sponsors the CPA exam, and they have a massive marketing budget. That’s why so many people have heard of the CPA certification. The Institute of Management Accountants, which sponsors the CMA, is much smaller, so they just can’t get the word out as effectively about the CMA certification.
Job requirement. You are required to have the CPA certification if you want to work as a public accountant, while there is no job requirement mandating that you obtain the CMA certification.
Pay boost. Earning the CPA certification generally results in a higher boost in your pay than would be the case if you earned the CMA certification.

Reasons Favoring Both Certifications

Another issue in regard to certifications is whether it makes sense to pick up both certifications. If you do, the usual path is to sit for both exams as close together as possible, since some of the subject matter – not all of it – is the same. Keep in mind that each of these organizations charge a large annual fee to maintain your certification, and each one has continuing professional education requirements. So it’s not just about trying to pass two examinations in a row. You also have the ongoing expense – and time – associated with maintaining the certifications. Also, having both certifications on your resume may not help all that much. In short, you don’t receive much incremental benefit from having both certifications.

What about taking both examinations but not fulfilling all of the other requirements to actually be certified? Maybe you don’t have the experience requirement, or don’t want to pay the annual fee, or don’t want to spend time with the ongoing training. What you could do is state on your resume that you’ve passed one or both exams. That at least proves you have a lot of very specific accounting knowledge. This is a good idea, and it’s certainly better than saying nothing at all about a certification.