Difference Between CPA and CIMA

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.