CA v/s CMA: Let's understand the difference
For those interested in making a career in finance, Chartered Accountancy (CA) and Cost and Management Accountancy (CMA) are the two most popular options to opt. The demand for CA and CMA professionals is not only high in India but also in many countries across the world. Here are some key differences between CA and CMA that can help you make the right choice.
About the CA program and its different stages
Chartered Accountancy is a three-level course that is offered by the Institute of Chartered Accountants of India (ICAI). The course is divided into three stages: Foundation, Intermediate, and Final. The average duration of the CA course is 4.5 years, including the three-year articleship or practical training. The minimum eligibility for the CA course is the 10+2 examination (or equivalent) from a recognized board.
What about the Cost & Management Accountancy course?
Coming to the Cost & Management Accountancy course, it is offered by the Institute of Cost Management Accountants of India (ICMAI). The CMA program also comprises three levels: Foundation, Intermediate, and Final. The minimum duration of the CMA course is 3-4 years; training is mandatory under this program. Students who have passed the 10+2 examination (or equivalent) are eligible for the CMA program.
What exactly do CA and CMA courses deal with?
The CA program primarily deals with accounting, taxation, law, audit, and finance. Meanwhile, the CMA course deals with cost accountancy, cost management, corporate finance, economics, performance management, internal controls, decision analysis, financial reporting, strategic planning, and organizational management.
Job profiles of Chartered Accountants, Cost & Management Accountants
Chartered Accountants can work on job profiles like internal audit, statutory audit, direct or indirect taxation, handling transfer pricing, investment decisions, and financial and accounting management among others. Some basic job profiles for Cost and Management Accountants include cost accounting, cost auditing, financial planning, business applications, business analysis, strategic management, and management accounting and reporting among others.
Difference in the salaries of CAs and CMAs
Coming to the salary, at the entry-level, a Chartered Accountant can expect an average pay of around Rs. 6 lakh per annum. On the other hand, the average salary for a fresher Cost and Management Accountant is around Rs. 4 lakh per annum.
