CIMA Vs ACCA - Which UK Course is Relevant for Indians?

Indian students are increasingly choosing the UK for higher education due to its academic excellence, diverse courses, language advantage, and post-study work opportunities.

In 2022, the number of Indian students studying abroad reached 770,000, and this figure is witnessing an annual growth rate of approximately 10%. Among these students, nearly 140,000 opted for the UK as their preferred destination for overseas education.

The Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management Accountants (CIMA) are two well-known qualifications in Accounting & Financeoptions in the UK. These globally renowned courses not only enhance your accounting and financial skills but also open doors to a world of job opportunities.

Are you wondering which course to opt for? As a leading institute training CA and ACCA students, we can give you more clarity on the subject. Read on as we analyse ACCA vs CIMA in greater depth so you can make an informed decision.

What is CIMA?

The Chartered Institute of Management Accountants (CIMA) is an international professional management accounting body headquartered in the UK. CIMA offers training and certification in management accounting and associated fields.

It focuses on accountants who work in the industry and offers members continuous assistance and training. CIMA has around 696,000 members and students worldwide, spread among 172,000 organisations and 192 countries.

CIMA prepares students for a rewarding career in finance sectors such as banks, audit firms, investment banks, IT sectors, and even e-commerce. After finishing the CIMA course, individuals can seek careers in risk management, project finance, corporate finance, business analysis, financial reporting, and financial analysis.

CIMA's affiliation with the US CPA board offers a unique opportunity. By completing the CIMA programme and accumulating months of practical experience, you become eligible to attain the prestigious Chartered Global Management Accountant (CGMA) designation.

What is ACCA?

ACCA stands for the Association of Chartered Certified Accountants. It's a globally respected accounting organisation that provides a prestigious qualification in accounting and finance. ACCA is based in the UK and is present in many nations on a global scale. The highly acclaimed ACCA certification is intended to prepare individuals for a lucrative career in accounting, finance, and related disciplines.

ACCA members are equipped with the knowledge and skills necessary to work in diverse roles, including auditing, financial management, consulting, and more. ACCA offers support to 241,000 members and 542,000 future members based in 178 countries throughout their careers. With a network of 117 offices and centres worldwide, they ensure that exams and services are delivered locally to their customers, regardless of their geographic location.

Differences Between CIMA and ACCA

Let's analyse, differentiate and highlight these two important accounting credentials.

Aspects	CIMA	ACCA
Governing Body	The Chartered Institute of Management Accountants governs CIMA.	ACCA is governed by the Association of Chartered Certified Accountants
Number of Exams	CIMA consists of 12 exams divided into three levels: Operational, Management, and Strategic. Operational: E1: Managing finance in a digital world P1:Management Accounting F1: Financial Reporting Case Study: Operational Level Case Study Management: E2: Managing Performance P2: Advanced Management Accounting F2: Advanced Financial Reporting Case Study: Management Level Case study Strategic E3: Strategic Management P3: Risk Management F3: Financial Analysis Case Study - Strategic Level Case Study If you hold a degree in accounting, finance, or management, potential exemptions from CIMA exams are possible.  Exemptions vary based on your qualifications, but a related degree typically allows you to skip a significant portion of the CIMA Qualification, including the Certificate in Business Accounting (Cert BA) and much of the Operational level. Advanced qualifications grant more exemptions.	ACCA comprises 13 exams divided into three levelsfour modules: Knowledge, Skills, ProfessionalEssentials, and Options (any 2) Applied Knowledge: Business and Technology (BT) Financial Accounting (FA) Management Accounting (MA) Applied Skills: Corporate and Business Law (LW) Taxation (TX) Financial Reporting (FR) Performance Management (PM) Financial Management (FM) Audit and Assurance (AA) ProfesionalEssentials: Essentials Strategic Business Reporting (SBR) Strategic Business Leader (SBL) Options (any 2) Advanced Financial Management (AFM) Advanced Audit and Assurance (AAA) Advanced Taxation (ATX) Advanced Performance Management (APM) Exemptions in ACCA can apply to Foundation levels and the initial nine Applied Knowledge and Applied Skills exams.  Exemption of one paper (Business Technology)is available to graduate students too.
Duration	CIMA typically takes around 3-4 years to complete. When a candidate holds a complementary degree such as BBA (Bachelor of Business Administration), B.Com (Bachelor of Commerce), ACCA (Association of Chartered Certified Accountants), CFA (Chartered Financial Analyst), or an MBA (Master of Business Administration), the CIMA course takes around 2 to 3 years to complete.	ACCA duration depends upon your educational level. If you have completed 12th grade, it takes a minimum of 2-3 years to finish. Graduates with a degree in B. Com, BBA, or BMS may require 2 to 2.5 years to finish the qualification.  If you have already completed CA Inter for both groups, you can complete ACCA in a minimum of 2 years.  However, individuals with a B. Com degree who have cleared CA Inter for one group can potentially complete ACCA in just 1 year. Similarly, those who have completed the CA Final can also complete ACCA within 9 months.
Roles Played	CIMA holders are well-suited for roles such as management accountants, financial analysts, and management consultants.	ACCA holders can pursue careers in areas such as audit, taxation, financial management, and consulting.
Scope of the Subject	CIMA focuses on management accounting, strategy, and business leadership.	ACCA covers a wider range of topics, including accounting, taxation, auditing, and financial management.
Freshers’ Pay Package	A candidate possessing strong CIMA proficiency, regardless of their level of experience or role, can potentially earn up(INR 6 lakh p.a).	The starting salary for ACCA holders can vary as follows Public Practice Sector: GBP 18,000 - 25,000 (18.52 lakh to 25.72 lakh p.a) Financial Services Sector: GBP 18,000 - 25,000 (18.52 lakh to 25.72 lakh p.a) Public Sector: GBP 15,000 – GBP 26,000 (15.42 lakh to 26.74 lakh p.a) Corporate Sector:  GBP 18,000 - 22,000 (18.52 lakh to 22.64 lakh p.a)
Overall Cost	The total cost is around GBP 3900 (INR 4 lakhs). This fee includes registration fees, subscription fees, and exam fees. The fees can vary based on the tier (region) in which you are taking the exams.  Furthermore, the total cost varies based on the exams you select and whether you're a new candidate or an existing one. Also, the cost does not include your tuition fees, books, and other study materials. The tuition fees depend on the CIMA tuition provider.	The total cost is around  GBP 1600 (INR 1.64 lakh). This fee covers exam fees, subscription fees, and registration fees.  However, your actual total cost may vary based on the number of exemptions you receive and the specific exams you choose to take, as well as any late entry or special centre fees, if applicable. Moreover, the tuition fee is an additional expense and will be determined by the Approved Learning Partner (ALP), such as 1FIN.  Hence, it may amount to approximately INR 3 - 4 lakh (GBP 2900  - 3800) for all three levels.  For students who have completed CA Inter or graduated, the cost could be around INR 2.5 lakh (GBP 2500), and for the CA Final level, it might be around INR 1.5 lakh (GBP 1400).

 

Pros and Cons of CIMA and ACCA

Both the Chartered Institute of Management Accountants (CIMA) and the Association of Chartered Certified Accountants (ACCA) are esteemed accounting bodies. However, their respective specialisations and advantages and disadvantages differ. Here are some of the pros and cons of each:

CIMA

Pros

• CIMA primarily focuses on management accounting and provides in-depth knowledge of financial management, business strategy, and decision-making. It is, therefore, ideal for people who wish to work in financial management and management accounting.
• CIMA focuses on practical skills, helping candidates apply their knowledge effectively in real-world corporate situations.
• CIMA offers flexibility in terms of study options, allowing candidates to choose between classroom-based learning, online courses, and self-study

Cons

• Although the CIMA's emphasis on management accounting offers advantages to those seeking such a job, it may restrict the career prospects for those with an interest in more general fields of accounting, such as audit or taxation.
• CIMA has a longer qualification process compared to some other accounting bodies, which may require more commitment in terms of time and effort.

ACCA

Pros

• ACCA provides a more comprehensive curriculum that covers a range of accounting, finance, and business topics. This makes it suitable for those interested in a wide range of accounting roles, such as auditing, taxation, and consulting.
• ACCA offers fast-track options for individuals with relevant qualifications or experience, allowing them to progress more quickly through the qualification.
•  ACCA's curriculum is designed to align with the skills and knowledge that employers seek in accountants, increasing employability

Cons

• While the ACCA's flexibility is an advantage for some, it could be a drawback for those wanting to focus on specific fields of accounting, such as management accounting.
• ACCA examinations are known for being challenging and rigorous. Candidates must invest significant effort and time in preparation.
  
  

Is CIMA or ACCA More suitable for Indians?

Deciding between CIMA and ACCA depends on several factors.

1. Career Goals

CIMA suits management and financial roles, emphasising strategy and leadership. ACCA offers a broader accounting foundation, ideal for various fields like audit, taxation, and consulting

2. Industry Preferences

If you're thinking about jobs in manufacturing or services, CIMA's focus on management accounting might be a good match. But if you're interested in roles related to checking financial records (like auditing), ACCA could be a better choice.

3. Flexibility

ACCA tends to be more flexible in terms of job opportunities it can offer. It is flexible and covers an extensive range of accounting and financial subjects.

4. Time and Cost

The time and investment for CIMA and ACCA are both substantial. Consider your readiness to invest in these aspects when making your decision.

5. Global Recognition

Since both credentials are accepted everywhere, your decision shouldn't be dependent on your nationality.

6. Study Preferences

Consider the study format that suits you best. CIMA and ACCA offer different study pathways, and one may align better with your learning style.

Key Takeaway

For Indian students and professionals, choosing between CIMA and ACCA depends on a range of factors, including career goals, industry preferences, flexibility, time, cost, global recognition, and preferred methods of study.

Both credentials have unique benefits and target different areas of expertise within the accounting and finance fields. Therefore, it's essential to evaluate your aspirations and needs carefully before deciding which path best aligns with your career objectives.

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FAQs

1. Does each qualification have a role to play in India?

Yes, an international qualification adds value to your resume, enhancing employability in India and abroad. ACCA UK and CIMA UK, esteemed global qualifications, are sought after by finance and business professionals.

2. Can Indians do these courses and go abroad for work?

Indeed, both CIMA and ACCA qualifications earned in India open doors to diverse roles in the UK, including financial advisor, management consultant, financial analyst, and corporate treasurer, among others.

3. Which these courses give a boost to Indian finance executives?

A CIMA certificate can be more advantageous for you if you want to take a management or strategic business career. If your goal is to gain specialised accounting skills and knowledge, an ACCA certificate may be better suited for you.

4. Are these 2 qualifications essential for Indians to work in UK Finance fields?

CIMA and ACCA qualifications are not essential but highly beneficial for Indians pursuing careers in the UK finance sector. They enhance employability and open doors to better opportunities.

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