Are you confused between CA or CMA? Don’t know What is good for your future? Then this article will help you. In this article, we have discussed some important points that you should consider before making your decision. This article is written for a complete beginner in a nontechnical language. So if you are already doing CA or any other related professional degree then you will find some objection with this post. But, our objective for writing this post is to clear the doubt of a new student who recently cleared his/her HSC exams and now wants to go for a professional degree.
Assuming you don’t know anything about this professional degree, let’s first understand What is CA and CMA? CA stands for Chartered Accountants and CMA stands for Cost and Management Accountants. You can do this professional degree for Institute of Chartered Accountants of India (ICAI) and Institute of Cost Accountants of India (ICAI) respectively. Yes, both the profession is represented by a common four-letter word called ICAI, but these both the institute is managed different Insitute. Qualified Chartered Accountants can use CA before his/her name and they are the only person who is eligible for Income Tax Audit whereas Qualified Cost Accountants can use CMA before his/her name and they can are only eligible for Cost Audit.
Remember, in the market, Income Tax audit has more scope than Cost Audit. Further, besides Income Tax audit, CA are eligible for many other audit and certification also. But CMA is not allowed in all the fields. If the scope of work is considered then CAs has more scope than CMAs.
For more information, you can visit the official website of the CA and CMA.
Now, let’s us discussed, the difference between CA and CMA for making your decision.
Year of Establishment
Institute of Chartered Accountants of India was established in 1949 under the statutory act of parliament whereas Institute of Cost Accountants of India was established in 1959 under the statutory act of parliament.
Hence, the Institute of Chartered Accountants of India is older than Insitute of Cost Accountants of India. In 1961, when Income Tax comes into existence, the Institute of Chartered Accountants of India was 12 years old whereas the Institute of Cost Accountants of India was only two years old only. Hence, in Income Tax, only Chartered Accountants was given authority to the tax audit.
For a beginner the syllabus and the difficulty of passing both exams are same. If you ask any expert then he/she will differentiate the syllabus of both the exams but friendly speaking there is no difference in both the syllabus. In both the exams, you need to pass the similar kinds of papers only. Hence, if you are concerned about the subjects and syllabus then stop worrying about it because in both the degree the syllabus is same.
In CA, you can not appear for the final exam before completing your articles period of three years whereas in Cost and Management Accountants there is no such compulsion. In CMA, you just require to complete 6-month articles before applying for the exam.
Here, it is also important to note that in CA, your job will not be calculated as articles whereas, in CMA, your job can be calculated as articles provide it fulfills the criteria mentioned by the Institute.
I am sure somewhere you have heard that there is a lobby of Chartered Accountants in the industry. Yes, this is true. Chartered Accountants has a huge lobby in the industry as compared to Cost and Management Accountants.
In many organizations, a Qualified Cost and Management Accountant is compared with Inter passed Charted Accountant.
Please Remember, Chartered Accountant has a huge scope in Audit and Organization whereas Cost and Management Accountant has a scope in Factories.
Future of Industry
According to us, in the future, the scope of Cost and Management Accountant will increase. This is because, with Made in India initiative and scare resources, in the future, it is only Cost Accountants who can save the economy. Let us understand this with an example
Today, we have limited resources like Petrol, Water etc. Now, with this limited resources, if you want to grow economy the Cost Accountants can help you. It is truly sais ‘BEHIND EVERY SUCCESSFUL BUSINESS DECISION THERE IS A CMA’. Chartered Accountants comes after doing expenditure whereas the Cost Accountants comes before doing the expenditures.
What’re your views
If someone asks us What are your views then we will say that there is no doubt that currently CA has the lobby but in the next 10 years the role of Cost Accountants will increase. This is because of three reasons as mentioned below
- In GST, both CA and CMA are given equal rights.
- CA Insitute is slowly losing their value, due to lots of recent scams. Our Prime Minister has openly spoken this in the public forum and promised to take necessary action against the corrupted accountants.
- Last but very important, in the recent Direct Tax Code Draft, even Cost and Management Accountants are eligible for doing Income Tax Audit. So, if it comes into reality then CA Insitute will lose its monopoly and CMA will allow doing an Income Tax audit also.
So, we request you to go through the above points properly before deciding whether you should go for CA or CMA. Next, if you face any problem in making a decision then feel free to contact us. We will be happy to help you.