CIMA vs. ACA

[Fred_the_frog]

I've had an opportunity come up to study for the AAT qualification and CIMA qualification, whilst working and getting paid. Obviously this is much more appealing than Uni.

It's with a local firm, so it's not one of the big ones in London.

Anyway, I'd like to ask what the main differences between CIMA and ACA is.

From what I know, an ACA qualified accountant can audit firms and prepare accounts.

A CIMA qualified accountant prepares monthly accounts and more detailed / broken down accounts, to provide to managers to help them understand the finances.

Is the career potential about the same for these qualifications? I've mainly been looking at ACA because its what the big London firms were doing.

I'd like to go on to either set up my own business or be in a top position at another business (CFO, CEO etc). I read on the CIMA website that most CEO/CFO's are management accountants. But I remember ICAEW also stated that CEO/CFO's are ACA accountants.

Are they pretty much the same, but Management accountants work in businesses, and ICAEW accountants work in an agency?

(A lot of websites said 'Do CIMA if you like management accounting...')

Thanks

 

[IANL]

I am not an accountant but I have had pretty of practice doing accounting for various businesses I have owned. If I was to study for accounting I would aim for CIMA as it is more akin to financial planning and real day to day business accounting.

My brother in law did CIMA and then on to an MBA and has been CEO and CFO of some large telecommunications companies

That is not to say ACA can't but I think CIMA is more relevant to running a business.

 

[Anna Chandley]

Would you actually be able to study and qualify as an ACA with your current firm? To qualify as ACA you would need a training contract with an ICAEW authorised training firm - if your current employer is not authorised then you wouldn't be able to qualify with them.

Assuming that you would complete the AAT then move onto CIMA/ACA then I would complete the AAT qualification and then decide which route you wish to take. There is a fast track route to ACA if you have already qualified as AAT.

Anna

 

[Inquisitiveone]

I am ACA having qualified with a large firm. Whilst the training was great, and has put me in good stead for finding jobs, the practical experience was always very high level. We worked in large teams often working on a small aspect of the P&l or balance sheet, and deciding on how to apply accounting practices to scenarios.
We always worked from the top down, never from the basic bookkeeping up. Most of my aca friends would struggling using an accounting system and compiling a Trial balance.

Whilst ACA is a highly recognised qualification, audit is not for everyone. You may prefer to work up from bookkeeping to accounts, in which case I would suggest AAT and CIMA

 

[Fred_the_frog]

Would you actually be able to study and qualify as an ACA with your current firm? To qualify as ACA you would need a training contract with an ICAEW authorised training firm - if your current employer is not authorised then you wouldn't be able to qualify with them.

Assuming that you would complete the AAT then move onto CIMA/ACA then I would complete the AAT qualification and then decide which route you wish to take. There is a fast track route to ACA if you have already qualified as AAT.

Anna

No, they are offering AAT & CIMA only. I was asking because if CIMA was not as good as ACA then I would let it go and look for a different scheme

I am ACA having qualified with a large firm. Whilst the training was great, and has put me in good stead for finding jobs, the practical experience was always very high level. We worked in large teams often working on a small aspect of the P&l or balance sheet, and deciding on how to apply accounting practices to scenarios.
We always worked from the top down, never from the basic bookkeeping up. Most of my aca friends would struggling using an accounting system and compiling a Trial balance.

Whilst ACA is a highly recognised qualification, audit is not for everyone. You may prefer to work up from bookkeeping to accounts, in which case I would suggest AAT and CIMA

I'm not sure I understand? Do you mean that as a CIMA accountant you would need to get a book keeping job first, then gradually move up to better jobs, whilst an ACA accountant can go straight in with a high job?

 

[MyAccountantOnline]

Fred have you taken a look at each institutes websites? They have lots of helpful information which should help you.

 

[Inquisitiveone]

CIMA's tend to be trained whilst working in the finance department of a business, getting involved in all aspects of a Company's finance function, from posting invoices to month end.

As an ACA you train in an audit firm, so you don't get involved in preparing the first draft of accounts. You tend to work from a set of already drafted accounts, so don't get to fully understand debits and credits and how accounting systems actually work.

 

[David Ballantyne]

Hi Fred,

Regarding AAT. If you are being given the chance to study AAT and gain practical work experience, take it. AAT plus three years work experience is better than a degree with no work experience. I went for a degree in accounting and if I could have my time over again I would go down the AAT route. The same applies to the opportunity to study CIMA.

Regarding CIMA vs ACA. The two qualifications are designed to serve different market niches.

CIMA is designed to train accountants to work as the internal accountant in commercial organisations to maintain the accounting records and produce financial information for decision making (management accounts) and for statutory reporting (financial accounts). CIMA is not an audit qualification, so CIMA qualifieds cannot conduct audits.

ACA is designed to train accountants to work in accounting practices providing services to businesses of all sizes. This work can include audit, tax returns, maintaining financial records, preparing statutory accounts, preparing management accounts, business development consultancy. You can only train for ACA in a Chartered Accountants registered with the ICAEW as a training organisation.

There are differences in their respective syllabi that reflects their respective market niche. There are also a lot of similarities.

Having said the above, the following is true of both qualifications:
You can find CIMA and ACA working in industry, practice, public sector and the charity sector in senior positions.
You can set up your own accounting practice with either qualification.
They are both chartered qualifications treated equally in the employment market place.

Regarding the response from Inquisitiveone he/she meant that the work they did started with analysing sections of the finished profit and loss account and balance sheet and carrying out methodical audit work to ensure that they are a true and fair set of accounts. He/she did not mean that with ACA you get to a senior position quickly.

David.

 

[talkinpeace]

there is also the ACCA : where you can qualify while working in industry

 

[Fred_the_frog]

Hi Fred,

Regarding AAT. If you are being given the chance to study AAT and gain practical work experience, take it. AAT plus three years work experience is better than a degree with no work experience. I went for a degree in accounting and if I could have my time over again I would go down the AAT route. The same applies to the opportunity to study CIMA.

Regarding CIMA vs ACA. The two qualifications are designed to serve different market niches.

CIMA is designed to train accountants to work as the internal accountant in commercial organisations to maintain the accounting records and produce financial information for decision making (management accounts) and for statutory reporting (financial accounts). CIMA is not an audit qualification, so CIMA qualifieds cannot conduct audits.

ACA is designed to train accountants to work in accounting practices providing services to businesses of all sizes. This work can include audit, tax returns, maintaining financial records, preparing statutory accounts, preparing management accounts, business development consultancy. You can only train for ACA in a Chartered Accountants registered with the ICAEW as a training organisation.

There are differences in their respective syllabi that reflects their respective market niche. There are also a lot of similarities.

Having said the above, the following is true of both qualifications:
You can find CIMA and ACA working in industry, practice, public sector and the charity sector in senior positions.
You can set up your own accounting practice with either qualification.
They are both chartered qualifications treated equally in the employment market place.

Regarding the response from Inquisitiveone he/she meant that the work they did started with analysing sections of the finished profit and loss account and balance sheet and carrying out methodical audit work to ensure that they are a true and fair set of accounts. He/she did not mean that with ACA you get to a senior position quickly.

David.

That's really helpful, thanks. The degree I have been given an offer for isn't an accounting course, it's something completely different. I need to have an interview/ do some tests before I can do this accounting scheme, so I have the degree as a fall back, but i'm not sure which one to go for.

-------

Is there much difference in salaries between the qualifications?

 

[teddys]

The first point to note is that you can be an accountant (well 'chartered) with either of them. Choosing one over the other depends on what you really love doing:

- if you wish to ultimately set up on your own, be your own boss and be facing up to different business situations of several clients then ACA is the route. This means that you will be an external accountant and an adviser to several businesses. You will be trained in subjects such as accounting in depth, audit, tax and company laws.

- if you just want to be with one business (in employment) as an employee doing up things like internal accounting and reporting, being an internal accountant, then CIMA is the way. CIMA has very little focus on tax, audit and statutory accounting. But their syllabus will change in 2015 when may be, the current focus of their syllabus change.

So it's down to you - where your interests lie!!

 

[Anna Chandley]

As an ACA you train in an audit firm, so you don't get involved in preparing the first draft of accounts. You tend to work from a set of already drafted accounts, so don't get to fully understand debits and credits and how accounting systems actually work.

There is a bit of a misconception that ACA trainees spend 3 years doing audits and not a lot else. The work you will carry out whilst training for ACA will depend on the type of practice you train in. It is possible to train with a practice that is not audit registered.

I trained in a smaller practice and in addition to auditing I did plenty of accounts preparation and tax work.

Anna

 

[David Ballantyne]

Hi Fred,

Comparative salaries. For CIMA/ACA employed in commerce (not in a practice), public sector, not for profit sector, salaries would be the same. I work in a non-profit organisation with two management accountants one ACA, the other CIMA. The CIMA accountant is paid more. The fact that she is paid more has nothing to do with which accounting qualification she has.

I know an ACCA who works in a NHS organisation as a deputy finance director who has CIMA and CIPFA reporting to her.

The point to understand is that the qualifications are viewed as equal. As too is ACCA and CIPFA.

In respect of being self employed in your own practice, there is nothing to stop you from doing so with CIMA. Equally, if you completed AAT, you could have your own accounting practice without needing to gain any further qualifications.

David.

 

[Fred_the_frog]

Hi Fred,

Comparative salaries. For CIMA/ACA employed in commerce (not in a practice), public sector, not for profit sector, salaries would be the same. I work in a non-profit organisation with two management accountants one ACA, the other CIMA. The CIMA accountant is paid more. The fact that she is paid more has nothing to do with which accounting qualification she has.

I know an ACCA who works in a NHS organisation as a deputy finance director who has CIMA and CIPFA reporting to her.

The point to understand is that the qualifications are viewed as equal. As too is ACCA and CIPFA.

In respect of being self employed in your own practice, there is nothing to stop you from doing so with CIMA. Equally, if you completed AAT, you could have your own accounting practice without needing to gain any further qualifications.

David.

Thanks.

The place giving me the interview is actually a practice, so I guess I would get some good experience if I went on to open my own.

I just have to hope I can impress in the interview now!