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The accounting field requires that certain credentials are in place in a variety of employment situations. There are some distinct differences between the two most popular accounting designations: Certified Public Accountant/CPA and Certified Management Accountant/CMA. Below is an outline of the more common differentiations between these professional certifications. Education and Certification To become an accountant, there is a requirement to possess a minimum of 150 hours of some form of college education in varied accounting and business subjects. This is because a CPA must be licensed by the state. In addition to the educational requirements, CPAs must have also passed a 14 hour CPA examination which covers the following topics: - Accounting
- Auditing
- Business management
- Business and tax laws and regulations
The CMA designation, on the other hand, carries no legal requirements in the United States. However, CMAs also carry a financial degree that covers the same subjects as a CPA. The CMA certificate assumes that its holders will carry certain distinct professional qualifications, such as possessing: - Accounting background
- Experience with management and strategy
- The ability to engage in tactical financial and operational development
Work Environments The broad background of the Certified Public Accountant/CPA makes these professionals suited for business consulting, corporate accounting and tax audits. While some CPAs work at firms, some choose to be self-employed. In comparison, the CMA utilizes accounting skills along with management abilities to lead departments and staff, with the goal of developing and growing businesses. The scope of primary responsibilities for the CMA generally includes: - Financial accounting
- Management accounting
- Operations management
- Corporate finance
- Internal control
- Business financial ethics
- Statistics and economics
- Industry and government decisions
Compensation The U.S. Bureau of Labor statistics has reported that the 2006 professional accounting field mid-range earnings was approximately $54,630. Accounting professionals, on average, may earn between $40,000 and $70,000. The large pay variation relates to education, credentials and firm size. Both senior level Certified Public Accountant/CPAs and Certified Management Accountant/CMAs have the potential to earn in the six figure range. Any certified accounting professional may enjoy greater earning and career opportunities than non-certified individuals. At the top of the pay scale, professionals holding the Certified Management Accountant certification have reportedly received as much as a 22 percent pay range hike over the last few years. The average salary for a CPA has gone up to $106,713 from an average of $87,165. In addition, there is a 25 percent increase for the total average compensation, from $99,441 to $124,346, over non-certified accounting professionals. Other Considerations Many businesses require that their accountant be licensed by the state. Accountants filing reports with the Securities and Exchange Commission (SEC) are required to be a Certified Public Accountant (CPA), by law. Those individuals who choose to become an accountant often do so understanding that the field provides a very stable future, particularly when individuals possess credentials. Both CMA and CPA occupations also carry ethical requirements, along with continued education, in order to remain certified.
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