CA vs CMA: Salary & Differences To Make A Better Career Decision

Are you torn between choosing CA or CMA as a career option? There is no need to feel alone if that’s the case. This is a question that most commerce students face. The purpose of this post is to answer all your questions and help you make an informed decision. It’s time to get started.

A student’s choice of career path will have a significant impact on their future. With a variety of job options available to 12th commerce students, career selection is particularly crucial. The most popular options they have are Chartered Accountancy (CA) and Cost and Management Accounting (CMA).  

However, students have difficulty selecting an appropriate course due to the increased popularity and complexity of these courses. In this post, we will discuss CA and CMA income prospects, differences, and more. Here’s what CAs and CMAs have in common.

CA vs CMA: Key Differences

CA and CMA differ primarily in their curriculums. CA courses emphasize accounting, law, auditing, taxation, and finance, while CMA courses emphasize cost management, cost accounting, economics, internal controls, and corporate finance.

Although CAs are more challenging, they have a higher earning potential, while CMAs are industry-focused careers that require expertise and time to advance.

A brief overview of the CA program

It is one of the most in-demand professional courses on the planet. Financial, accounting, taxation, auditing, and other professions are demanding and rewarding. A chartered accountant can work for one of the big four accounting firms or start their own firm for higher growth. 

Let’s check a few of the other details of the CA Course:

According to demand:

 A Chartered Accountant’s profession is highly respected and in high demand. Moreover, they are vital for businesses of all sizes, including startups and multinational corporations. The importance of CAs cannot be overstated For businesses of all sizes, especially startups and multinational corporations, CAs are essential. Chartered accountants are highly sought after and highly respected. Businesses of all sizes, including startups and multinationals, depend on them.

What I do: 

Chartered Accountants provide companies, individuals, and other institutions with financial reporting, tax planning, corporate finance, auditing, assurance, and risk management services.

The syllabus includes:

There are three levels in the CA course: CA Foundation, CA Intermediate, and CA Final. The curriculum also includes Accounting, Law, Taxation, Auditing, and Financial Management.

Amount of time:

There is usually a 4.5 to 5-year course duration for the CA course. However, this can be exceeded if the student takes a long time to complete all three levels. 

Payments:

The CA course’s price varies by institution and level. An average CA course fee may vary from 2 lakh rupees to 3 lakh rupees.

Pass Rate:

There is a relatively low pass rate for the CA course, with between 10% and 12% of applicants passing both CA Final groups on their first try.

Requirements:

In order to become a CA, you must complete a 10+2 program or its equivalent with at least 50%. Three years of practical training are required before applicants can sit for the CA Final exam. 

Here are the steps to becoming a CA

Become a CA by following these steps:

• Completed 10+2 education with a minimum grade point average of 50%.
• Obtain a CA Foundation Certificate by registering and passing the exam.
• You must register and pass the CA Intermediate exam.
• Complete a three-year practical CA training program
• For both groups, appear and clear CA Final
• Earn the CA membership and certification by completing the course

Being a Chartered Accountant requires commitment, effort, and a love of money and accounting. In India and abroad, it is a highly lucrative profession.

A brief overview of the CMA program

Now let’s compare the CMA and CA courses. In case you are interested in a career in management accounting or cost accounting, the CMA course called Cost and Management Accountancy is for you. In a business or organization, a CMA is responsible for allocating, allocating, and managing finances. Further, the course focuses on four pillars of knowledge: management, strategy, regulatory framework, and financial reporting. 

Here are a few more details about the CMA course:

1. The demand:

 As a result of its global recognition and lucrative employment opportunities, the CMA degree is highly sought after. The course is also appropriate for those who wish to pursue careers in manufacturing, financial services, or government. 

2. The work is: 

It is typical for CMAs to work in the areas of financial planning, analysis, and decision-making. They are also responsible for budgeting, cost management, and financial analysis.

3. Course structure: 

It consists of three levels: the CMA Foundation, the CMA Intermediate, and the CMA Final. It includes subjects like Cost Accounting, Law, Taxation, Auditing, Financial Management, and more.

4. Amount of time: 

Become a CMA after three years of study. However, how quickly students clear the levels depends on their pace.

5. Payments: 

About Rs 100,000 is required to cover the fees. 

6. The pass rate is: 

In both groups, the CMA Final pass rate is approximately 10%.

7. Requirements:

A CMA must complete a 10+2 program or its equivalent with a minimum of 50%. The CMA Foundation Exam, CMA Intermediate Level, and the CMA Final Exam must be passed by applicants before they can take the CMA Final Exam.

Here are the steps to becoming a CMA:

• Become a CMA Foundation student and pass the exam.
• Become a CMA Intermediate and pass the exam.
• Training must be completed in a practical setting.
• Become a CMA Final student and pass the exam.
• Join the Institute of Cost Accountants of India (ICMAI).

Difference Between CA vs CMA – Detailed Comparison

Below is the detailed comparison of CA vs. CMA in a tabular form: Both courses have unique advantages; students can choose based on their career goals and interests.

In India, CMA vs CA salaries

A Chartered Accountant in India usually earns between 6-7 lakhs as an initial salary, which increases with experience and knowledge. Rank holders may receive up to 25 lakhs if they pass on their first attempt. With experience and knowledge, the salary of a CMA increases to between 7 and 8 lakhs. 

After CA Course, Career Opportunities

It is very prestigious and competitive to become a Chartered Accountant in India. There are many career opportunities available to CA graduates across various sectors and industries. Some of them are:

1. The audit and assurance function

A Chartered Accountant’s most common job profile is Audit & Assurance. MNCs, government agencies, accounting firms, and non-profit organizations hire CAs as auditors. The auditors are also responsible for reviewing and assessing financial statements, ensuring compliance with laws and regulations, and recommending improvements to financial systems.

2. Inherent in taxation

The field of taxation is another common career choice for CPAs. Accounting firms, businesses, or government agencies may hire them as tax consultants or managers. As a result, they provide tax compliance and planning advice, prepare tax returns, and represent clients in tax audits.

3. The accounting and finance professions

Financial analysts, financial controllers, and chief financial officers (CFOs) can also work as CAs. Their responsibilities include managing financial operations, formulating financial plans, and advising management.

4. The management of risks

Risk managers and internal auditors can also be chartered accountants. Moreover, they ensure compliance with legal and regulatory requirements by detecting and evaluating risks.

5. The investment banking industry

Analysts who specialize in corporate finance or investment banking can also serve as CAs. Moreover, they advise customers on financial matters, handle mergers and acquisitions, and raise funds for businesses.

6. Director of Finance

CFOs are responsible for managing a firm’s finances, including financial planning, risk assessment, record keeping, and financial reporting.

Choosing a career after completing the CMA program

A few of the job profiles available to students with CMA certification are as follows:

1. An accountant who deals with costs 

Managing the expenses of a company is the responsibility of a cost accountant. You will also be responsible for creating cost accounting Identifying ways to reduce expenses by tracking systems, compiling cost reports, and analyzing financial data.

2. An analyst of finance

Financial analysts are responsible for evaluating financial data in order to make investment decisions, formulate financial forecasts, and evaluate financial performance. They also advise and provide recommendations for a financial strategy to management.

3. An accountant with management responsibilities

Providing financial information to management will assist in decision-making, budget setting, and reviewing financial performance. You will advise management on financial strategies and assist them in achieving their goals.

4. Manager of Finance

An organization’s financial operations will be handled by a financial manager, who will also advise management on economic issues. Ensure compliance with applicable rules and best practices while overseeing financial reporting and analysis for the organization.

5. Accounting chiefs

The chief accountant is often responsible for a company’s financial transactions. They are often hired by government entities, hospitals, banks, and retail companies.

6. The company’s internal auditors

It is the role of an internal auditor to assess and improve the effectiveness of an organization’s internal controls, risk management, and governance processes. These are those who examine the financial and operational activities of the company to guarantee adherence to relevant rules and regulations.

How do CAs and CMAs compare?

A person’s interests, skills, and professional goals determine whether they should become a CA or CMA. There are many different career options in accounting, finance, and business that can be pursued through these courses.

In the CA program, accounting and finance are emphasized. In addition, it provides worldwide recognition, earning potential, and a wide variety of employment opportunities, including auditing, taxes, financial management, and consulting.

CMAs provide specific knowledge and skills in cost management, budgeting, and decision-making. CMA courses are offered to students interested in cost and management accounting. 

Choosing between CA and CMA should be based on the interests, talents, and career goals of the student. To identify which course best matches their goals, it is essential to examine the curricula, job prospects, and skills required for each course.