CMA US vs CA India: Which Accounting Qualification is right for you?

Choosing the right accounting qualification – it’s that one important decision for anyone who is aiming at establishing a successful finance career. Two among them-the most pursued qualifications are the Certified Management Accountant (CMA) of the United States and Chartered Accountant of India. Both the qualifications have different sets of benefits, opportunities, and challenges. In this blog, we will be particularly comparing CMA US Vs CA India to guide you on a future decision of which would be suitable for you.

CMA US is a global recognized certification which has to do with management accounting and strategic financial management. The certification is brought about by the Institute of Management Accountants (IMA). It focuses on decision-making, financial planning, and analysis.

The CA India qualification that the ICAI offers is quite respected in the country and focuses on auditing, taxation, and financial reporting. Indian CAs have a reputation for their expertise in accounting standards and regulations.

Educational Requirements for CMA US and CA India

In the case of CMA US, one must be holding a bachelor’s degree in any field from an accredited institution and must have relevant two years of experience in management accounting and financial management. Students can also take the exams that align with their pursuit of their degree; however, certification will only be issued when they have met the requirements for work experience.

For CA India, candidates can start at the beginning right from 12th grade itself. A candidate clearing his/ her 12th class will start off his/ her journey by pursuing the course of CA Foundation. Then after, he has to join for the CA Intermediate and then CA Final levels and do three years of articleship as well. However, graduates can also opt for the direct entry route for joining CA Intermediate level directly.

The CMA US qualification is relatively of short time and can be completed within 6–9 months in case it is undertaken on a full-time basis. Two modules are included in this qualification:
Financial Planning, Performance, and Analytics
Strategic Financial Management

In contrast, the CA India qualification is a longer and more extensive program that would require nearly 4-5 years for completion. In this qualification, three levels are covered:
CA Foundation
CA Intermediate
CA Final

For this program, completion of mandatory 3-year articleship with a practicing CA is also entailed.

The CMA US exam has two parts with each test last for four hours with multiple-choice questions and essay-based questions. The exams are conducted globally in a number of windows every year.

The CA India exams are held twice a year, that is, in May and November. The exams for all three levels-Foundation, Intermediate, and Final-are rigorous and spread over several subjects. This comprises theoretical as well as practical case-based questions.

This way, with a CMA US certification, you can easily move into any of the following profiles: being a financial analyst, management accountant, or CFO – such as big decisions, strategy, and financial planning. Most CMAs are employed by multinational corporations, consulting firms, and sometimes even in government roles.

A CA India certification opens up vast opportunities in accounting, auditing, taxation, and finance. A CA typically works with accounting firms, the provision of corporate finance or with independent firms offering audit and tax consultancy services.

The remuneration of CMA US holders is set between INR 8-12 lakhs every year for freshers. More experienced professionals in multinational companies will obviously receive higher sums. A senior CMA working at the highest level of management can draw upwards of INR 25 lakhs.

On the other hand, a newly qualified CA India can earn around INR 6-9 lakhs annually as depending on articleship experiences and the company joined. And senior Chartered Accountants with excellent experience may even claim up to INR 20-25 lakhs or even more.

Because the CMA US is recognized worldwide, therefore, it is highly sought after by persons who would like to move into a multinational corporation or abroad. Besides, it is also highly valued in the US, Canada, Middle Eastern Countries, and in Europe.

CA India is well recognized in India and countries which follows Indian GAAP. However, experienced Indian CAs can also look for opportunities abroad, though extra qualifications like ACCA or CPA may be necessary for international mobility.

CMA US Renewal. Certified members must have 30 hours of Continuing Professional Education (CPE) within the calendar year. This is a requirement to ensure that CMAs update their knowledge with the latest industry practice and trends.

CA India holders also have continuing professional education or updating their knowledge. ICAI requires certain hours of CPE over a period to maintain the certificate in good standing.

This CMA US qualification is also specialized in management accounting and emphasizes more on financial strategy, planning, and analysis. This might therefore appeal to those who want to pursue more widely financial management or general management. However, the worth of the qualification may be less for India where CAs influence a lot of regulatory and statutory jobs.

In the UK, though longer, the CA period is distributed over a time frame and is not as condensed in duration. Articleship is not compulsory with these qualifications. Therefore, although the duration may be a hurdle for students who wish to pursue a CA career, its career options are extensive and wide open.

The articleship component extends the period further. However, at best, it is construed as experience in the Indian job market in terms of work experience.

Both are of great stature – CMA US Vs CA India, whereas those serve different purposes for distinct career paths. In case you wish to build a career in management accounting or hold a job in multinationals, then the best alternative will be CMA US. In case you have an interest in auditing or taxation or require a job in India, then the better choice would be CA India.

Review the following: what you will gain from these qualifications with respect to your career ambitions, the industry in which you want to work, and the geographical location. Both qualifications hold exciting futures for you and in accounting and finance.