CFA VS CMA: Which is Better For Your Career?

By IIC Lakshya

04 Aug 2024

CMA INDIA, CMA USA

Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA) are two highly respected certifications that offer unique opportunities. However, these two credentials specialize in different areas of finance and accounting. Through this blog, we'll help you comprehend the key differences between CFA and CMA so that you can make an informed decision that aligns with your interests.

What is CFA (Chartered Financial Analyst)?

Chartered Financial Analyst (CFA) is a professional certification in the field of investment and portfolio management accorded by the CFA Institute (formerly known as the Association for Investment Management and Research or AIMR) based in the US. This qualification equips individuals with thorough knowledge, competencies, and skill sets to carry out technical, analytical, and ethical elements related to investments.

Here are some fundamental highlights of the CFA program:

Globally recognized and respected certification in over 160+ countries.

Opens doors for career opportunities in asset management and investment banking.

Equips individuals for several prominent roles like Portfolio Manager, Research Analyst, Chief Investment Officer, Investment banker, etc.

What is CMA (Certified Management Accountant)?

Certified Management Accountant or CMA US course is a prestigious certification that concerns the domain of accounting and financial management granted by the Institute of Management Accountants (IMA) based in the US. In India, it is awarded by the Institute of Cost Accountants of India (ICAI). This qualification provides individuals with efficient financial management skills, strategic decision-making knowledge, and financial planning expertise within organizations.

Here are some key highlights about the CMA program:

Globally recognized and acknowledged across 150 countries.

Unlocks lucrative opportunities in corporate finance, accounting, and financial management roles across various industries.

Offers career prospects at profound positions such as Corporate Controller, Financial Manager, Budget Analyst, Risk Management Analyst, etc

What are the Key Differences between CFA and CMA?

As we have broached the topic of knowing what CFA and CMA certifications are, to assist you in comprehending the key distinctions between these globally well-acclaimed qualifications, here's the following outline:

Feature	CFA	CMA
Focus	Investment analysis, portfolio management & wealth planning	Managerial accounting, financial planning and strategic financial decision-making.
Eligibility	A Bachelor's degree or equivalent approved by the CFA institute and 4 years of work experience.	A bachelor's degree or equivalent approved by the IMA and 2 years of work experience
Exam Structure	Consists of Three Levels	Consists of Two parts
Exam Duration	Level 1: 6 hours Level 2: 4 hours 24 minutes Level 3: 4 hours 24 minutes	Part 1:4 hours Part 2: 4 hours
Exam Curriculum	Subjects covered in CFA at each level are the same. However, with each level weightage and depth increase. The subjects included in CFA are: Ethical and Professional Standards Quantitative Methods Economics Financial Statement and Analysis Corporate Issuers Equity Investment Fixed income Derivatives Alternative Investments Portfolio Management & Wealth Planning	Part 1:Financial Planning, Performance, and Control External Financial Reporting Decisions Planning, Budgeting, and Forecasting Performance Management Internal Controls Technology and Analytics Part 2: Financial Statement Analysis Corporate Finance Decision Analysis Risk Management Investment Decisions Professional Ethics
Frequency of Exams	Level 1: 4 times a year(February, May, August & November) Level 2: 3 times a year(May, August, & November) Level 3: 2 times a year(February & August)	Twice a year for both parts(December & June)

CFA or CMA - Choosing The Right Path

After understanding the key differences between CFA and CMA, we went over what these two certifications specialize in, their global recognition, their respective career opportunities, their eligibility criteria, and various course details. Now the daunting question appears: CMA or CFA which is better? The right choice lies where your aspirations arise from.

If your interests align more with what the certification of CFA offers, then the CFA could be an excellent career path for your professional growth and development. However, if your goals are more in sync with what CMA provides, then it could be the ideal path to pursue. Therefore, it's advised to carefully evaluate the fundamental differences between CFA and CMA credentials, such as focus areas, curriculum, and career paths to determine which suits best your long-term goals.

Frequently Asked Questions (FAQs)

Can you do CFA after CMA?

Yes, you can pursue Chartered Financial Analyst (CFA) certification after your Certified Management Accountant (CMA) qualification. No criterion restricts one from pursuing CFA after obtaining CMA certification. Rather, your CMA knowledge can provide a solid foundation for various topics on which the CFA and CMA curricula overlap, such as financial reporting and analysis.

How long does it take to become a CMA?

The duration that it takes to become a CMA professional depends on various factors. On average, it is estimated that to complete your CMA qualification it takes about 2 to 3 years keeping in view the examination structure and the eligibility criteria. However, if your prior knowledge and work experience align with the CMA eligibility requirements, then you can accelerate your CMA journey.

Is CFA harder than CMA?

Yes, the CFA credential is considered to be more demanding and difficult than the CMA qualification due to the reason that the CFA has three levels of examinations with extensive modules and a 4-year mandatory work experience requirement. On the other hand, CMA only has two parts of examinations with a requirement of 2 years of work experience. Therefore, considering the examination structure and work experience requisite for both qualifications, the CFA program is considered challenging. However, if it is pursued with consistent discipline, dedication, and effective time management skills, the difficulty level of CFA certification could be tackled.

What is the difference between CFA and CMA?

The difference between CFA and CMA lies in their areas of specialization. The CFA primarily focuses on the investment industry, analyzing financial markets and its related areas. Whereas, CMA targets the domain of accounting, financial planning, and strategic decision-making within organizations.