Difference Between CFP and CMA

CFP is the abbreviation for Certified Financial Planner. It is a course that can be pursued by students who aspire to become financial planners in the future. CMA is the abbreviation for Certified Management Accountant. It can be accomplished by candidates willing to gain financial accounting and strategic management expertise.

Each choice a candidate makes in their career takes them nearer to their dreams. Since the appropriate option is critical, studying proper research is better to make the right decision. However, a hasty decision may waste a candidate’s precious time and effort to achieve their dream. We understand that. Therefore, let us help you to make the right career choice. Refer to two required courses for financial professionals that can help give the right direction to a career.

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What is a Certified Financial Planner (CFP)?

CFP or Certified Financial Planner is a certificate course for financial planners specializing in strategic financial planning or advisory roles in the financial services industry. The certificate is conferred upon by the Certified Financial PlannerCertified Financial PlannerCFP is a certification that helps people to plan their finances well. In the USA, the average age of the population is 36.8 years. Thus, the need to reach their retirement age with a good net worth is a priority. read more Board of Standards (CFP Board) in the United States and by its affiliated body FPBS in India.

CFP is a mark of excellence recognized and respected globally by financial professionals. The course is designed to meet the stringent standards of education, examination, experience, and ethics to ensure that the individuals’ certified win employees’ trust and gain a plethora of opportunities after completing the course.

What is a Certified Management Accountant (CMA)?

The Certified Management Accountant is a professional certification in financial management and advanced accounting that qualifies a professional to mete out responsibility related to the arena which employers worldwide highly respect. A CMA acquires knowledge and skills in financial planning, analysis, control, decision support, and professional ethics.

The US-based Institute of Management Accountants awards the CMA certification. The CMA-certified professionals can work in industries like manufacturing and services, public and private enterprises, not-for-profit organizations Not-for-profit OrganizationsA not-for-profit organization refers to a legal entity that isn’t created to generate profits or revenue for its owners but aims at social, educational, religious or public welfare and service. Such an organization is tax-exempted and run through donations or any other income it makes.read more, academic institutions, government entities, and MNCs.

CFP vs CMA Infographics

Let us understand the difference between CFP vs. CMA with the help of infographics.

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Educational Requirements

CFP

The candidates must fulfill the 4E criteria to be certified as a CFP.

  • EducationExaminationEthicsExperience

The minimum eligibility criterion for the CFP course is a graduate or bachelor’s degree or higher degree with a working knowledge of the financial planningFinancial PlanningFinancial planning is a structured approach to understanding your current and future financial goals and then taking the necessary measures to accomplish them. Because this does not begin and end in a specific time frame, it is referred to as an ongoing process.read more practices prevalent in the industry.

CFP vs CMA Comparative Table

A candidate requires a bachelor’s degree from an accredited university across the globe in any discipline to be deemed qualified for the CMA exam.

Why Pursue CFP?

CFP is the highest level of certification for a professional aiming to carve a niche in the financial industry and is appreciated worldwide by professionals and consumers. The certificate has been awarded the Gold StandardGold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency.read more Award by the Wall Street Journal, which describes its credibility. In addition, the CFP candidates are remunerated with attractive salaries in investments, insurance, tax, retirement, and real estateReal EstateAt its most basic principle, Real Estate can be defined as properties that comprise land and its tangible attachments. The land includes the actual surface of the earth and any permanent natural objects such as water, dirt, or rock and any minerals or particulars under the surface. read more.

  • Part I: Financial Planning, Performance & Analytics Part II: Strategic Financial Management

  • General Principles of Financial Planning Estate Planning Education Planning Investment Planning Retirement Savings & Income Planning Tax Planning Professional Conduct & Regulation Risk Management & Insurance Planning

 

  • Financial Reporting Decisions Financial Statement Analysis Planning, Budgeting & Forecasting Corporate Finance Performance Management Cost Management Internal Controls Risk Management Decision Analysis Investment Decisions Technology & Analytics Professional Ethics

  • Estate Planner Retirement Planner Financial Manager Risk Manager

  • Financial Risk Manager Financial Consultant Financial Analyst Cost Accountant Internal auditor

  • Mar 08 – Mar 15 Jul 12- Jul 19 Nov 01- Nov 08

  • Jan 01 – Feb 28 May 01 – Jun 30 Sep 01 – Oct 31

Why Pursue CMA?

CMA is a globally recognized and accepted certification in the corporate world and is relevant for a professional who seeks to succeed in the business environment. The certified program’s visibility is increasing and is the most preferred choice to boost career prospects by professionals from the US, China, and the Middle East.

A CMA-certified candidate is eligible for higher positions in the company. The relevancy of the certified courses can be determined by the structure of the course and the practical lessons it imparts. The CMA curriculum is designed specifically to mirror real-world applications that are in practice in the financial and accounting sector. Hence, CMA designation holders are paid 58% higher compensation than their non-certified counterparts as indicated by IMA’s 2021 Global Salary Survey.

The candidates may also read this complete guide on CMA exams for further details.

Conclusion

Research is vital, considering the time and cost involved in pursuing these certification courses. However, it is better to be sure of the career goals, and the career boosts candidates are most likely to achieve before taking a plunge and registering for the exam.

This article has been a Guide to CFP vs CMA. Here, we discuss the differences between CFP and CMA, comparison, job opportunities, study hours with infographics, and a comparative table. You can learn more from the following articles: –

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