ACCA or CMA: Which is the Toughest Challenge?

When it comes to examining professional qualifications in finance and accounting a budding finance professional would often ask: “ACCA or CMA which is tough?” ACCA (the Association of Chartered Certified Accountants) and CMA (Certified Management Accountant) are well-regarded international certifications that have a bright future ahead of them, however, they contrast with each other in many aspects, notably the program, the career focus, and the level of difficulty. This article shall discuss the qualifications in question, look into some differences, and provide the answer to the age-old question of which course is harder ACCA or CMA.

What is the ACCA Course?

The ACCA (Association of Chartered Certified Accountants) is a worldwide certification course that trains students in accounting, auditing, and financial management. With its presence in over 180 countries, this program designates those who aim to pursue a job in global organizations, audit firms, or financial institutions.

Key Features of ACCA

1. Worldwide Endorsement: ACCA credentials are valid in over 180 countries, meaning that it is a qualification that is successful in providing international job prospects. 
2. Extensive Syllabus: The syllabus of ACCA involves subjects like financial accounting, audit, tax, financial statement, business legislation, and ethics. This extensive course structure helps prepare any finance professional who has ACCA qualification for any finance-related job position.
3. Flexible Learning Arrangements: ACCA provides its members with flexible examination time, hence, members can study on their own. In general, it takes 3-4 years full duration in the ACCA program but candidates may complete the duration quicker or longer depending on their pace and willingness. 
4. Organization of ACCA: The organization prepares its candidates by posting of 13 qualifying examinations in three levels: three Applied Knowledge exams, three Applied Skills exams, and Strategic Professional level. It further examines the financial management, audit, and reporting profession.

Career Opportunities with ACCA

• Professionals with the ACCA qualification can take up jobs including that of an auditor, tax advisor, finance manager, risk analyst, corporate finance adviser, etc. 
• Degree holders from ACCA are very much in demand by the Big Four KPMG, Deloitte, EY, and PwC as well as corporate companies.

What is the CMA Course?

The CMA or Certified Management Accountant is a professional certification awarded by the American Institute of Management Accountants (IMA), based in the United States. This certificate has a narrow scope focusing on financial management and management accounting and is thus suitable for individuals aspiring to managerial positions in planning, budgeting, and performance management within an organization.

Key Features of CMA

1. Strategic Emphasis: The CMA program places great emphasis on the areas of management accounting, cost accounting, budgeting, and corporate financial strategy. This program aims to cover all aspects of internal financial management thereby making the CMAs an important decision-making resource for the organization.
2. Global Reach: Obviously, the utmost value is given to CMA in the US, however, even more so today, especially in the allied countries of India and China, as well as the Middle East and elsewhere, it is becoming in demand. Most of the organizations operating in the global market consider strategic management decision-making as the core qualification of a CMA.
3. CMA Structure: The CMA program has two sections–CMA Part 1 – Financial Planning, Performance and Analytics, and CMA Part 2–Strategic Financial Management. Each section is structured to assess the understanding of one or more concepts in management accounting at an advanced level.
4. Duration: In addition, CMA can be pursued in 2 to 3 years, and also be pursued within a span of 6-12 months, which again works to shorten the time taken in comparison to most of the other professional certifications.

Career Opportunities with CMA

• Individuals with CMA certifications are frequently found in executive roles including financial controller, cost accountant, financial analyst, and budget analyst positions. 
• Management in the aforementioned field is not only common but increasingly important in businesses such as manufacturing, healthcare, and IT, as well as the government where arts internal cost control, management, and financial strategic planning decision-making processes.

Key Differences: ACCA & CMA

Even though ACCA and CMA credentials are important in finance and accounting for most organizations, there are clear differences between the two. The following is a comparison of ACCA and CMA based on various factors.

Eligibility for Course:

• ACCA: Candidates aspiring for the ACCA qualification must have at least completed 10+2 with Commerce as their major subject. Degree holders with qualifications such as B.Com, M.Com, or MBA may not be required to present certain papers. Also, practitioners with a history of working in finance may qualify for paper exemptions as per their qualifications.
• CMA: Draw the CMA eligibility who meet a bachelor’s degree from a recognized institution. Besides clearing the two-level CMA exam, there is a requirement to have at least two years of experience working in financial management or management accounting for the individual to be awarded the certification.

Salary Potential

• ACCA Salary: For an entry-level position in India, ACCA professionals can expect to receive a salary that ranges between INR ₹6- ₹10 lakhs per annum. However, with added experience, more so in multinational companies or high-ranking financial positions, the remuneration package can shoot up to even INR ₹15- ₹25 lakhs per annum.
• CMA Salary: On the other hand, considering the earnings at the entry level for a certified management accountant in India, the range seems to be slightly better at approx. INR ₹7- ₹12 lakhs per annum. Further progression involves occupying such senior roles as financial controllers or CMAs’ whose annual remuneration can surpass INR ₹20 lakhs per annum.

Difficulty Level

• Difficulty level of ACCA: The complexity of the ACCA can be labeled as moderate in this regard since it entails a wide range of topics which include taxation, audit, and financial reporting among other areas. The 13 exams could be a tall order, but since they can be done at the student’s pace, it is very manageable. With effort and preparation, the ACCA becomes attainable for the majority of students.
• Difficulty level of CMA: As for CMA, although it comprises only two parts, it is heavily reliant on strategic financial management and management accounting. The examination demands an extensive level of knowledge in theories of cost management, budgeting, and analytics. Due to the nature of the emphasis placed on the goal, sectors are more difficult in terms of concepts in the case of the CMA; however, it is a better option for professionals since the period is short.

Which One is Tough?

There is no straightforward answer to the question, “Is ACCA or CMA more difficult?” since it balances out several individual strengths, career aspirations, and backgrounds. Below are some aspects to keep in mind:

1. Breadth vs Depth: While ACCA may seem daunting due to its extensive ACCA syllabus and 13 papers to be completed, this broad coverage does well to equip a student for many careers in finance and accounting. CMA on the contrary is built around management accounting and so requires lesser but concentrated knowledge of a few topics. If you’re looking at the broader picture of how organizations make financial decisions, CMA will be harder for you as its center is on management and cost accounting.
2. Duration: ACCA tends to take a longer duration to finish (3-4 years) thereby demanding more continuous engagement than the CMA which can be done in a period of 6 to 12 months but the nature of the sittings makes it quite strenuous in that short period.
3. Exam Structure: Doing ACCA is long and hard with its corresponding 13 papers because they cover many terrains of study, however, the ability to schedule the exams at a convenient time reduces the strain. In very few exams, however, in this case only two parts of the CMA exam, the complexity is packed into some few but broad knowledge management accounting principles.

In short, ACCA may seem simpler if it is the kind of qualification you are looking for since it is more diverse and has more topics to encompass, and therefore it provides flexibility. On the other hand, if you are looking for a shorter and more targeted course that deals with management accounting, then, in a way, it would be more difficult to pursue the CMA program, because there are fewer exams.

Conclusion

Both ACCA and CMA are acknowledged qualifications in the profession of accounting and finance, but the selection between the two depends on one’s career aspirations and preferences. In case you wish to cover a wider scope of subjects and travel a lot during your work, then ACCA stands out as the best alternative. In contrast, this would not apply to you in case you only wish to take a management accounting course and take part in business activities and decision-making at the very top managerial levels, then the right choice for you would be CMA. In the end, both provide rewarding career options, however, the degree of such difficulty varies according to one’s tastes and skills.

Also read more: Advisors Helping Stars Make Smart Investment Choices.