CPA vs CMA

Becoming a CPA vs CMA

If you want to become a CPA, plan on investing eight-plus years to get there. To begin, you'll need 150 hours of undergraduate credits, which is equivalent to a bachelor's degree and sometimes a Master’s degree. If your state requires work experience, it will take an additional two years. Given the extremely low first-time pass rate for the CPA exam (across the four sections), which is roughly around 45-63%, the AICPA lets you pass all four exams once you've passed your first within a timeframe of 18 months. CPA requirements often vary by state or jurisdiction. For example, in Nebraska, the state requires you to have a prior work experience of at least 4000 hours to be eligible for licensure. To learn more about the state-specific requirements, read about every state’s requirements for CPA licensure.

In comparison, becoming a CMA can take nine-plus years. To become a CMA, you must first get a bachelor's degree, which may take three to four years. Next is the mandatory two-year work requirement, which can be an internship or a part-time job you can do while in college. Given the difficulty of the CMA exam and the low first-time pass rate, the IMA allows CMA candidates a three-year exam window. As a result, CMA tests typically take longer to pass, which may impact a candidate's morale.

CPA vs CMA Salaries

Certified Public Accountants earn 10-15% more than non-certified accountants. Salaries can be higher than average in industries experiencing a lot of growth, like financial technology or software. As a CPA, you can work in auditing, taxation, quality assurance, or advisory services for the top accounting firms, like the Big Four, well-known global companies, or smaller local firms. In recent years, certain industries, like hospitality, healthcare, and EdTech have been growing and looking to hire CPAs.

On the other hand, getting the CMA certification can provide you with numerous options in both the regional and global markets. It will help you improve your financial, accounting, and management skills, which will enhance your job opportunities and help you stand out from the pack.

A CPA's average compensation throughout the course of their career is around $120,000, while a CMA's typical salary is around $100,000. According to the AICPA's survey, the average newly licensed CPA in the United States earns $66,000 annually. However, with 20 years of expertise, one can expect more than $160,000.

Why CPA Might Be A Better Choice?

So, now that you know the major differences between a CPA and a CMA, it's time to make a choice. What you choose will depend on a number of factors and can also be determined by your preferences. However, in our opinion, getting a CPA would be a better choice for an accounting professional. Here’s why:

Raised Entry Barrier
The AICPA and NASBA have advocated for a common CPA prerequisite in all states—the so-called "3E" CPA requirements need 150 credit hours with a focus on accounting, as well as one to two years of experience validated by an active CPA licensee. Because the entry barrier is so high, becoming a CPA is a prestige that few can obtain, making the qualification extremely valuable.

Suitable for All Accounting Positions
The CPA credential is highly recognized, and you can earn it no matter where you work in finance and accounting, whether in public or non-public accounting. The CMA, on the other hand, is solely useful for individuals who want to work and stay in the corporate world.