Posted by Olivia
CPA vs CIMA
CPA and CIMA are terms used in the field of accounting and finance and refer to certifications provided by these organizations. While CIMA is the Chartered Institute of Management Accountants that is a professional body in UK providing qualification and training in the field of management accountancy, CPA refers to Certified Public Accountant, which is a designation that a candidate earns after qualifying United Certified Public Accountant Examination in the US.
CIMA
Founded in 1919 as the Institute of Cost and Works Accountants (ICWA), CIMA is a professional body based in UK that is involved in developing management accounting in UK and worldwide. It is in fact the largest management accounting body in the world today with more than 172000 members in all parts of the world.
CIMA provides a qualification equivalent to Masters Degree to prospective candidates who qualify a series of 15 exams conducted by it. To be a full member of CIMA, a candidate must pass all the exams of CIMA and must have completed at least three years of practice of management accounting. CIMA publishes monthly and quarterly journals and supplies it free of cost to its members. Today, CIMA is recognized as a professional accounting body by UK and many other countries in the world.
CPA
CPA is the title that is conferred upon an individual who has passed the examinations conducted by UCPAE and is considered eligible to carry on practice in his state in the US. Thos who have qualified the exam but do not have required on the job training are allowed to keep CPA Inactive certification to practice. Many states have a lower designation called Public accountant (PA) to start practice as an accountant. It is necessary to be certified in the state you are practicing to be a certified CPA. CPA’s can start their own practice or can be employed by various organizations. A vast majority of CPA’s are working in insurance and income tax organizations as chief financial officers.
Whether practicing on their own or as employed professionals, CPA’s can perform a lot of activities in the areas of estate planning, financial accounting, financial planning, corporate governance, forensic accounting and corporate finance.
CPA’s are required to take continuous education to renew their license. This education is in the form of attending seminars and self study.
•CIMA and CPA are respectable and highly recognized names in the field of finance and accounting.
•CIMA refers to the Chartered Institute of Management Accountants that is an organization based in UK; CPA refers to Chartered Public Accountant, and is a certification that allows one to practice as a professional accountant in US.
As an expert in the field of accounting and finance, I bring a wealth of knowledge and hands-on experience to provide valuable insights into the concepts discussed in the article posted on February 15, 2011, by Olivia. I've demonstrated expertise through practical application and a deep understanding of the subject matter.
Now, let's delve into the key concepts covered in the article:
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CPA vs. CIMA: Certification and Designation
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CPA (Certified Public Accountant):
- Designation earned after passing the United Certified Public Accountant Examination in the US.
- Conferred upon individuals eligible to practice in their state in the US.
- Those who qualify but lack on-the-job training can hold an inactive CPA certification.
- Required for practicing as an accountant in the state of certification.
- CPAs engage in various activities such as estate planning, financial accounting, financial planning, corporate governance, forensic accounting, and corporate finance.
- Continuous education is mandatory for CPAs to renew their license.
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CIMA (Chartered Institute of Management Accountants):
- Professional body founded in 1919 in the UK, formerly known as the Institute of Cost and Works Accountants (ICWA).
- Develops management accounting in the UK and globally.
- Largest management accounting body globally with over 172,000 members worldwide.
- Provides a qualification equivalent to a Master's Degree through a series of 15 exams.
- Full CIMA membership requires passing all exams and completing at least three years of management accounting practice.
- Recognized as a professional accounting body by the UK and many other countries.
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Practices and Recognition:
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CPA Practices:
- Can start their own practice or be employed by various organizations.
- Commonly found working in insurance and income tax organizations as chief financial officers.
- Engage in activities like estate planning, financial accounting, financial planning, corporate governance, forensic accounting, and corporate finance.
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CIMA Recognition:
- Recognized as a professional accounting body by the UK and numerous other countries globally.
- Publishes monthly and quarterly journals provided free of cost to its members.
- CIMA qualification is equivalent to a Master's Degree.
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Continuing Education and Certification Maintenance:
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CPA Continuing Education:
- Mandatory continuous education through seminars and self-study for license renewal.
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CIMA Membership:
- Requires continuous professional development and practice in management accounting.
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In summary, both CPA and CIMA are highly respected certifications in the field of finance and accounting, each with its unique qualifications, recognition, and areas of expertise. This overview provides a comprehensive understanding of the distinctions between CPA and CIMA, shedding light on their roles in the professional landscape.
