CPA and CMA are financial experts who understand your business finances and get involved in functions like planning and budgeting. It is a globally recognized profession where experts from the accounting firm in Pembroke Pines, FL work in government entities, corporations, and business institutions. Since both these work similarly, most people get confused between the two. In this article, we have jotted down major differences between a CPA and a CMA. So, here we go!
Who is a CPA?
Certified public accountants, or CPAs, are financial experts who specialize in financial and accounting tasks in different areas. These include:
- Tax Preparation
- Financial statements
- Financial planning
- Forensic Accounting
- Internal auditing
- Income tax.
These financial experts also perform other auditing, accounting, bookkeeping, consulting, and management tasks. CPAs also perform several other services, including personal financial planning, information management, forensic accounting, and technology assurance. Major sectors they work in are Public Accounting, Business and industry, Government, Education, and Non-profit.
Who is a CMA?
A certified management accountant, or CMA is a financial professional involved in strategic management, management accounting, and business decision-making. CMAs have great analytical skills, which help them analyze and explain the reason behind any number. Further, they make all the financial decisions of your business. CMAs often work for non-profit organizations, corporations, government organizations, and other businesses.
Services Offered by a CPA
Major services offered by a CPA are:
- Tax advice and planning
- Audit and assurance services
- Management and consulting
- Forensic Accounting
- Tax services
- Bookkeeping
- Consulting services
Services Offered by a CMA
Major services offered by a CMA are:
- Financial planning
- Analysis
- Control
- Decision support
- Professional ethics
- Costing
- Pricing of goods and services
- Verifies or Certifies Cost Accounting
- Prepares related statements
Difference Between CPA and CMA
Here are quick differences between CPA and CMA:
| Aspect | CPA | CMA |
| Focus | Primarily accounting, auditing in public practice | Emphasizes management accounting, financial planning |
| Scope | Broad spectrum: taxation, auditing, financial accounts | Management accounting, strategic financial management |
| Requirements | Bachelor’s, specific coursework, CPA exam, exp | Bachelor’s, CMA exam, relevant work experience |
| Professional Roles | Auditors, tax consultants, financial advisors | Financial analysts, management accountants, CFOs |
| Regulating Body | State boards of accountancy, AICPA | Institute of Management Accountants (IMA) |
Wrapping Up
Both CMA and CPA are financial experts who deal with the company’s finances. These professionals are important for your business to manage everyday financial tasks. If you are a business owner, get in touch with experts now!
