What is the Difference Between Management Accountant and Chartered Accountant?

The main difference between a Management Accountant and a Chartered Accountant lies in their roles and responsibilities within a company. Here are the key differences between the two:

Scope of Work: A Management Accountant works directly for and within a company, focusing on performance management, financial analysis, and strategic planning. In contrast, a Chartered Accountant works for a Chartered Accountant practice and provides financial guidance, advice, and reporting for multiple businesses.
Responsibilities: A Management Accountant is responsible for the financial status of a business, including people management experience and responsibilities. They make decisions for the company and interfere with internal issues. On the other hand, a Chartered Accountant focuses on preparing truthful financial statements and ensuring compliance with accounting standards.
Qualifications: Both Management Accountants and Chartered Accountants have similar qualifications and experience. However, Chartered Accountants are regulated by the Institute of Chartered Accountants of India (ICAI), while Management Accountants are certified by the Institute of Management Accountants (IMA).
Eligibility: The eligibility criteria for both courses differ. For example, the Chartered Accountant (CA) course in India requires 20 exams with three levels and three years of work experience in a chartered firm (Articleship). In contrast, the Certified Management Accountant (CMA) course requires only two exams with two years of relevant work experience and a bachelor's degree.
Difficulty and Pass Rates: The CA course is considered more difficult than the CMA course, with pass rates of around 8-12% for CA and 45-50% for CMA.
Duration: The CMA course typically takes 6-9 months to complete, while the CA course takes around five years.

In summary, a Management Accountant works directly for a company and is involved in decision-making and strategic planning, while a Chartered Accountant works for a practice and provides financial advice and reporting for multiple businesses. Both roles require similar qualifications and experience, but their responsibilities and scope of work differ significantly.

On this page

What is the Difference Between Management Accountant and Chartered Accountant?

Comparative Table: Management Accountant vs Chartered Accountant

Here is a table comparing the differences between a Management Accountant and a Chartered Accountant:

Feature	Management Accountant	Chartered Accountant
Focus	Internal accounting, cost accounting, and management accounting	External accounting, audit, taxation, and financial reporting
Work Setting	Works directly for a business	Works for an accountancy practice or firm that serves multiple clients
Responsibilities	Prepares financial statements, forecasts, and budgets; performs risk analysis, and advises on business decisions	Prepares financial statements, ensures compliance with accounting standards, and files tax returns
Target Audience	Internal management and decision-makers	External stakeholders, such as investors, creditors, and regulatory bodies
Qualifications	Same as Chartered Accountant, may also hold CMA certification	Same as Management Accountant, may also hold CPA license
People Management	May have people management experience and responsibilities	Typically does not have people management responsibilities

In summary, a Management Accountant focuses on internal accounting and provides financial insights to help management make informed decisions, while a Chartered Accountant primarily deals with external accounting, audit, taxation, and financial reporting for multiple clients.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.