Distinguishing Between CPA & CIMA

CPA and CIMA are both certifications in the field of accounting and finance. CIMA, or the Chartered Institute of Management Accountants, is a professional body in the UK that provides qualifications and training in management accountancy. On the other hand, CPA, or Certified Public Accountant, is a designation earned after qualifying in the United Certified Public Accountant Examination in the US.

CIMA

Founded in 1919 as the Institute of Cost and Works Accountants (ICWA), CIMA is based in the UK and is involved in developing management accounting there and worldwide. It is currently the largest management accounting body globally, with over 172,000 members. CIMA offers a qualification equivalent to a Master’s Degree to those who pass its series of 15 exams. To become a full member, candidates must pass all CIMA exams and have at least three years of management accounting practice. CIMA is recognized as a professional accounting body by the UK and many other countries.

CPA

CPA is a title given to individuals who have passed the examinations conducted by UCPAE and are considered eligible to practice in their state in the US. Those who have qualified for the exam but lack the required on-the-job training can maintain a CPA Inactive certification to practice. Many states have a lower designation called Public Accountant (PA) to start practice as an accountant. CPA’s can start their own practice or be employed by various organizations, with many working as chief financial officers in insurance and income tax organizations. CPA’s can perform various activities in areas such as estate planning, financial accounting, financial planning, corporate governance, forensic accounting, and corporate finance. They are required to take continuous education to renew their license, which can be in the form of attending seminars or self-study.

Key Takeaways

• CIMA and CPA are respectable and highly recognized certifications in the field of finance and accounting.
• CIMA is based in the UK and provides qualifications in management accountancy, while CPA is a US-based certification allowing individuals to practice as professional accountants.
• Both certifications require candidates to pass a series of exams, and in some cases, have a certain amount of practical experience before being recognized as a professional in their respective fields.