CPA vs. CMA: Which Accounting Certification is Right for You (2025 & beyond)

Understanding the CPA and CMA Certifications

The CPA and CMA certifications are two of the most prestigious and sought-after credentials in the accounting and finance world. While they share some similarities, they cater to different areas of the profession.

CPA (Certified Public Accountant)

The CPA certification is issued by the state board of accountancy in the state where you reside. It is primarily focused on public accounting, with a strong emphasis on tax, audit, and compliance-related work. CPAs are often employed by public accounting firms, where they play a crucial role in ensuring their clients' financial statements and tax filings are accurate and compliant with relevant regulations.

CMA (Certified Management Accountant)

The CMA certification, on the other hand, is issued by the Institute of Management Accountants (IMA) and is recognized globally. CMAs typically work in the private sector, often in roles such as financial planning and analysis (FP&A), budgeting, forecasting, and strategic decision-making. Their focus is on providing financial and managerial insights to help organizations make informed business decisions.

(For my recommended CMA review prep, check out Nathan Liao’s CMA Exam Academy)

Key Differences Between CPA and CMA

Now that we've established the basic understanding of the CPA and CMA certifications, let's dive deeper into the key differences between the two:

A) Education and Work Experience Requirements

1. Education Requirements

CPA License (U.S.)

• Requires at least a bachelor’s degree with a focus on accounting.

• Most states require 150 semester hours of education (which is typically 30 hours beyond a standard bachelor’s degree). This might change in 2025 as the AICPA is introducing a new pathway with 120 semester hours (details on that here)

• Courses must cover accounting, auditing, taxation, and business law.

• Some states may allow candidates to sit for the CPA exam with 120 hours but require 150 hours for licensure.

CMA Certificate

• Requires a bachelor’s degree from an accredited institution OR an approved professional certification (e.g., CPA, CFA).

• There is no specific requirement for 150 semester hours.

• Unlike the CPA, the CMA does not require coursework in auditing or taxation but focuses on management accounting and financial management.

2. Work Experience Requirements

CPA License

• Requires 1-2 years of work experience in accounting, typically under a licensed CPA.

• Some states require experience specifically in public accounting, while others accept experience in private industry or government roles.

• Experience must be verified and approved by a CPA.

CMA Certificate

• Requires 2 years of relevant work experience in management accounting or financial management.

• Work experience can be gained before or within seven years after passing the exam.

• The experience must involve financial analysis, budgeting, forecasting, risk management, or decision-making in an accounting or finance role.

If your goal is public accounting, auditing, or tax, the CPA is the better choice. If you’re more interested in corporate finance, management accounting, or decision-making, the CMA may be a better fit.

B) Earning Potential

At the entry-level (0-3 years of experience), CPAs typically earn between $65K and $85K, while CMAs fall in the range of $60K to $80K. CPAs often start in public accounting firms, which pay more initially than many corporate accounting roles. However, CMAs who enter corporate finance or cost accounting may still see solid early-career salaries.

By mid-career (5-10 years of experience), CPAs generally earn between $90K and $130K, while CMAs make between $85K and $120K. CPAs who transition to controller or senior accounting positions often command salaries exceeding $100K. CMAs, particularly those in financial planning and analysis (FP&A) or corporate strategy, also earn well but may experience a slightly slower salary trajectory compared to CPAs.

At the senior level (10+ years of experience), CPAs commonly earn $130K to $200K or more, especially in executive roles like controller, VP of Finance, or CFO. CMAs in leadership roles, such as finance directors or CFOs, can also reach $120K to $180K or more, but CPAs often have an advantage in high-level accounting-focused roles.

Overall, CPAs tend to earn more at every stage, especially in controllership and financial leadership positions. However, both credentials can lead to six-figure salaries in corporate finance and accounting. Since you're targeting a controller position with a salary of at least $65K, pursuing a CPA could be a strong investment in your career. That said, if you’re more interested in strategic financial management, the CMA could also be valuable.

C) Career Trajectory

CPA Career Trajectory

The CPA credential is widely recognized in public accounting, corporate finance, and regulatory roles. A CPA’s career path often starts in public accounting or a corporate accounting department and progresses toward leadership roles in financial reporting, compliance, and executive management.

1. Entry-Level (0-3 years) – Many CPAs begin their careers in public accounting firms (Big 4 or regional firms) as an audit associate or tax associate. Others start in corporate roles such as staff accountant or financial analyst.

2. Mid-Career (3-7 years) – After gaining experience, CPAs move into roles like senior accountant, audit manager, tax manager, or assistant controller. At this stage, many shift from public accounting to private industry.

3. Senior-Level (7-15 years) – CPAs often advance to controller, director of accounting, or finance leadership roles. Some specialize in financial reporting, SOX compliance, or regulatory accounting.

4. Executive (15+ years) – Many CPAs become Chief Financial Officers (CFOs), partners in accounting firms, or finance VPs. Their expertise in compliance, tax strategy, and auditing makes them ideal for high-level financial oversight roles.

Best Fit For: Professionals interested in financial reporting, auditing, tax, and leadership roles in corporate finance or public accounting.

CMA Career Trajectory

CMAs specialize in management accounting, strategic financial planning, and cost management. Their career path is more aligned with corporate finance and business decision-making rather than external auditing or tax.

1. Entry-Level (0-3 years) – CMAs typically start as cost accountants, financial analysts, or management accountants, working in budgeting, forecasting, and cost analysis.

2. Mid-Career (3-7 years) – With experience, CMAs move into roles like senior financial analyst, FP&A manager, or accounting manager, focusing on financial strategy and performance management.

3. Senior-Level (7-15 years) – CMAs progress to positions such as finance director, corporate controller, or VP of finance, taking on greater responsibility in financial strategy and operational efficiency.

4. Executive (15+ years) – Many CMAs become CFOs or finance executives, especially in manufacturing, healthcare, or technology industries. Their expertise in cost control and financial planning makes them valuable in corporate decision-making.

Best Fit For: Professionals interested in corporate finance, financial planning, strategic decision-making, and cost management.

D) Geographic Coverage

One of the primary distinctions is the geographic coverage of the certifications. The CPA license is issued by the state board of accountancy in the state where you reside, making it more localized in nature. In contrast, the CMA certification is recognized globally, allowing you to work in various countries and regions without the need to obtain additional certifications.

E) Area of Accounting

The CPA certification is primarily focused on public accounting, with a strong emphasis on tax, audit, and compliance-related work. CPAs often work for public accounting firms, where they are responsible for signing off on tax returns and audit reports. On the other hand, CMAs typically work in the private sector, often in roles such as FP&A, budgeting, forecasting, and strategic decision-making.

F) Flexibility and Autonomy

Another key difference lies in the flexibility and autonomy offered by each certification. CPAs have the option to start their own practice, allowing them to have more control over their work schedule, client selection, and overall business operations. CMAs, on the other hand, are more likely to work for large corporations, where they may have less flexibility in terms of their day-to-day responsibilities and work environment.

Factors to Consider When Choosing Between CPA and CMA

Now that you have a better understanding of the key differences between the CPA and CMA certifications, let's explore the factors you should consider when making your decision:

1. Personality Type

Your personality type can play a significant role in determining which certification is the best fit for you. If you tend to be more introverted, the CPA certification may be more suitable, as it often involves working with a smaller group of people, such as in tax and audit engagements. On the other hand, if you're more extroverted and enjoy collaborating with a wider range of stakeholders, the CMA certification may be a better match, as it typically involves working with management and cross-functional teams.

2. Mobility and Global Aspirations

If you anticipate moving across countries or regions in the future, the CMA certification may be the better choice, as it is recognized globally. The CPA, being more localized in nature, may require you to obtain additional certifications or licenses when relocating to a different state or country.

3. Entrepreneurial Aspirations

If you have a strong desire to own your own practice, the CPA certification may be the more suitable option. CPAs have the flexibility to start their own accounting firms, allowing them to have more control over their work schedule, client selection, and overall business operations. CMAs, on the other hand, are more likely to work for large corporations, where they may have less autonomy in their day-to-day responsibilities.

4. Career Aspirations

Your long-term career goals can also play a significant role in your decision. If your ultimate goal is to become a Chief Financial Officer (CFO), the CMA certification may be the better choice, as it provides the strategic financial and managerial experience that is often required for such a role. Conversely, if your sights are set on owning your own accounting practice, the CPA certification may be the more suitable path.

Preparing for the CPA and CMA Exams

Regardless of which certification you choose, passing the respective exam is a crucial step in your journey. Both the CPA and CMA exams are challenging, requiring extensive preparation and dedication.

For the CPA exam, you can expect to see topics such as Financial Accounting and Reporting (FAR), Regulation (REG), Business Environment and Concepts (BEC), and Auditing and Attestation (AUD). The CMA exam, on the other hand, covers areas like External Financial Reporting Decisions, Planning, Budgeting, and Forecasting, Performance Management, Cost Accounting, Internal Controls, Corporate Finance, Decision Analysis, Risk Management, and Investment Decisions.

For my recommended CMA review prep, check out Nathan Liao’s CMA Academy.

To help you prepare for your upcoming accounting interview, I highly recommend checking out my Night Before the Accounting Interview Guide. This comprehensive guide covers all the essential topics and strategies to help you ace your interview, regardless of whether you're pursuing a CPA or CMA certification.