CMA VS CA: In India, for commerce stream students or students who want to work in the financial sector, both of these fields hold tremendous potential. CMA stands for Cost and Management Accountant. CA stands for Chartered Accountant.
Which profession is better than the other? Should you pursue CMA or CA? Which holds more scope and offers better demand and salary? CMA VS CA which is better? These are the questions we will address in this blog.
Let’s first have a brief look at each of these professions.
CMA VS CA: Cost And Management Accountant
Cost and Management Accountant is among the most promising qualifications in the financial sector in India. ICMAI – The Institute of Cost Accountants of India, is the professional statutory body for regulating the profession of CMA in India.
CMAs who work for businesses or other corporations control all financial decisions and budgeting; they also choose how much to pay employees, create budget sheets, and take care of the firm’s overall cost. In essence, everything is related to money and costs.
Recently, CMA certification has become extremely popular. It is an extremely practical education for someone looking for employment in this field. It offers a very strong revenue stream, many prospects for progress, a wide range of fields to choose from, and a great deal of respect.
To become a CMA in India, a student has complete the CMA course offered by ICMAI. CMA course consists of three levels of examination namely CMA Foundation, CMA Intermediate, and CMA Final.
CMA VS CA: Chartered Accountants
If you are a chartered accountant, your job would be to handle an individual’s or an organization’s finances and offer financial guidance. It covers creating business strategy, taxation, auditing, and budgeting. Since you are in charge of a company’s money, the role involves a significant degree of management and responsibility.
In India, one of the most sought-after occupations is a chartered accountant. Additionally, it is among the hardest. Although it necessitates a lot of study and preparation, the benefits are also very great. Being a CA earns you a lot of respect, excellent employment opportunities, and a competitive income.
To become a Chartered Accountant in India, students have to complete the CA course offered by ICAI – The Institute of Chartered Accountants of India. The course will cover three levels which are; CA Foundation, CA Intermediate, and CA Final.
CMA VS CA – Which is Better?
Now, how do we decide which one is a better option? CMA VS CA – Which is better?
Both fields offer great career opportunities and advancement in India. But to have a closer look we can differentiate between them on the basis of scope, demand, salary in India, job prospects, course, and more.
Scope and Demand
The scope of a Chartered Accountant in India is very high. Every firm or organization is required to appoint a CA. It is a mandatory legal requirement to have a CA in your firm. CMAs, on the other hand, are not legal but a business requirement. Hence it is not mandatory to appoint them to every firm. Scope and demand for CMA are comparatively low in India.
The scope of CMA though is on a rise presently. CMA is called the course of the future. After 10-15 years, It is believed that CMAs will be high in demand. CMAs are the only authorized people to perform cost audits in a company.
CA VS CMA Salary in India
The average salary for a CMA fresher in India is 5-7 Lakhs per annum. High positions such as CFO (Chief Financial Officer) can earn up to 40Lakhs per annum. The average salary for a fresher in CA is 7 lakhs and can go up to 25 lakhs.
A Chartered Accountant focuses on finance, auditing, and taxation. A CMA’s job revolves around accounting and cost management.
Services of a CA are required by all kinds of firms like manufacturing companies, MNCs, startups, service companies, banks, NGOs, the public sector, etc. Services of a CMA are only required by large-scale production/services companies, the public sector, and MNCs.
Here are some job profiles a CA can work in
- Statutory Audit.
- Internal Audit
- Advisor in Direct or Indirect Taxation
- Handling Transfer Pricing
- Financial and Accounting Management
- Investment Decisions
- System Audit (after clearing DISA/CISA)
- Handling the company’s Legal Matters etc.
Job profiles for a CMA
- Cost Accounting
- Cost Auditing
- Financial Planning
- Determine the Prices of Goods and Services.
- Management Accountant
- Finance Analyst
- Cost Accountant
- Accounting Manager
- Senior Accountant
- Corporate Controller
- Chief Financial Officer (CFO)
Global Work Opportunities
While both fields offer opportunities to work globally, CAs are considered more useful in your own country. CMA can work in several countries like Australia, the UK, the USA, Canada, etc.
Difference between CA and CMA
Here you can see a detailed comparison between CMA and CA on the basis of scope, demand, course, work opportunities, and salary.
CMA or CA: Which is Better?
|Focus||accounting and cost management||finance, auditing, and taxation|
|Demand||Services of a CMA are only required by large-scale production/services companies, the public sector, and MNCs.||Services of a CA are required by all kinds of firms like manufacturing companies, MNCs, startups, service companies, banks, NGOs, the public sector, etc.|
|Course Structure||CMA Course has three levels;
||CA Course has three levels;
|Course Duration||The duration of the course is 4.5 years||The duration of the course is 3-4 years|
|Global opportunity||CMAs have opportunities to work globally||CAs are more useful in your own country like India|
|Legal Requirement||CMAs are not a legal requirement but a business requirement hence optional||CAs are a legal requirement and hence mandatory.|
|Work Opportunity||Can work in several different kinds of organizations in several different areas or departments||Can work in several different kinds of organizations in several different areas or departments|
|Organization to Work||CMA firms, government organizations, the public sector, banks, universities, NGOs, etc.||manufacturing companies, MNCs, startups, service companies, banks, NGOs, the public sector, government departments, statuary organizations, etc.|
|Average Salary||The average salary for a CMA fresher in India is 5-7 Lakhs per annum||The average salary for a fresher in CA is 7 lakhs and can go up to 25 lakhs.|
Check out our blog on CA CS CMA – What Should You Go For?
So now we have provided you with a clear distinction between CMA and CA. The field of Chartered Accountant has a better scope and is more in demand. CMA course though might hold better opportunities in the future. Work opportunities in both the filed are quite similar.
When talking about the courses, both these course consists of three levels but the syllabus for them is different. They have some similarities in the subjects but the overall curriculum is quite different. Some even say the CA course is harder than the CMA course. The number of CA pass-outs though has always been higher than CMA pass-outs.
When making a decision, students should take into account the points that matter to them. They should carefully analyze and figure out which profession is best suited for them. We hope this blog has helped make your decision process easier.
For more information on CA, CS, or CMA courses, you can visit our website https://toplad.in/