Many modern accounting and finance qualifications like ACCA, CFA, and CIMA are becoming popular as the world has undergone globalization. Due to this, businesses are spread across nations and employers are hiring professionals who understand the international standards and code of conducting commercial activities all across the world.
So today we have the two most popular designations CFA and CIMA, and let us discuss the key differences between them. The CFA vs CIMA will guide you better on which one to choose and what aligns better with your career goals as well as interests.
CFA vs CIMA: An Overview
CFA stands for Chartered Financial Analyst while CIMA is abbreviated for Chartered Institute of Management Accountants. They are finance professionals hired by employers in various countries like the United States, China, India, the United Kingdom and many more. On the other hand, CIMA charter holders are professional management accounting professionals mainly demanded in the UK along with other countries like other commonwealth nations: Australia, Canada, South Africa, and Malaysia.
What is CFA?
CFA is a highly valued qualification for finance professionals. It is considered the gold standard in the industry equipping aspirants with industry-relevant finance skills that help them stand out for their potential employer. The professional CFA charter holders are recognized globally for their expertise in investment management, financial analysis, and risk assessment. For those who choose to pursue CFA after 12th, it provides a strong foundation, helping them stand out to potential employers.
Earning the CFA designation demonstrates a strong commitment to ethical standards, analytical rigour, and a deep understanding of financial markets.
Aspect | Details |
| Curriculum Topics | Portfolio Management Equity & Fixed Income Analysis Corporate Finance Alternative Investments |
| Exam Structure | Three Rigorous Levels Assessing Financial Analysis, Investment Management, And Ethics |
| Work Experience Requirement | Mandatory Professional Experience To Obtain The CFA Charter |
| Skills Developed | Analytical Rigour Ethical Decision-Making Financial Market Expertise Risk Assessment |
| Career Opportunities | Asset Management Investment Banking Risk Management Corporate Finance |
| Industry Recognition | Globally Valued, Preferred By Top Financial Institutions |
| Value Addition | Enhances Decision-Making Abilities In Real-World Financial Scenarios |
What is CIMA?
CIMA is a management accounting qualification for professionals who want expertise in management accounting, financial strategy, and business decision-making. The certification equips aspirants with the industry-relevant accounting skills needed to drive business performance, manage risks, and provide strategic financial insights.
Aspect | Details |
| Curriculum Topics | Financial Reporting Performance Management Risk Management Business Ethics |
| Certification Levels | Operational Management Strategic |
| Final Qualification | Cgma (Chartered Global Management Accountant) Designation |
| Skills Developed | Business Decision-Making Financial Strategy Risk Management Performance Analysis |
| Career Opportunities | Corporate Finance Consulting Financial Planning Business Leadership |
| Industry Recognition | Globally Recognized And Valued Across Industries |
| Value Addition | Helps Professionals Translate Financial Data Into Actionable Business Strategies |
What’s the Difference Between CIMA and CFA?
CFA vs CIMA are two prestigious finance certifications. Both of them cater to different career paths within the financial industry. Choosing between these two is your personal choice and your career aspirations, whether you aim for investment and portfolio management or corporate finance and business leadership. So, let us explore the key difference between CIMA and CFA to help you decide which suits you best.
Aspect | CFA | CIMA |
| Focus Area | Investment Management Financial Analysis Portfolio Management | Management Accounting Financial Strategy Business Decision-Making |
| Governing Body | CFA Institute | Chartered Institute of Management Accountants (CIMA) |
| Certification Levels | Three levels (CFA Level I, II, III) | Three levels (Operational, Management, Strategic) |
| Key Curriculum Topics | Equity & Fixed Income Analysis Portfolio Management Risk Management Corporate Finance | Financial Reporting Performance Management Risk Management Business Strategy |
| Work Experience Requirement | 4,000 hours of relevant work experience (approx. 3 years) | 3 years of relevant work experience for CGMA designation |
| Final Designation | CFA Charterholder | CGMA (Chartered Global Management Accountant) |
| Career Opportunities | Asset Management Investment Banking Risk Management Financial Analysis | Corporate Finance Business Consulting Management Accounting Financial Planning |
| Industry Recognition | Highly valued in the investment and financial services industry | Recognized globally in business management and accounting roles |
| Who Should Pursue? | Those interested in Financial Markets Securities Analysis Portfolio Management | Professionals aiming for leadership roles in Finance Accounting Business Strategy |
CIMA vs. CFA: Similarities
CFA is more investment-focused and CIMA is centred on management accounting. They share a foundation in financial expertise, ethics, and strategic decision-making. So, Yes, despite their differences, CFA and CIMA share some key similarities given in the table below.
Aspect | Similarities Between CFA and CIMA |
| Global Recognition | Both CFA and CIMA are internationally recognized certifications in the finance industry. |
| Rigorous Examination Process | Both require candidates to pass multiple exam levels to earn the qualification. |
| Work Experience Requirement | Both require a minimum period of relevant work experience to obtain the final designation (CFA: 4,000 hours, CIMA: 3 years). |
| Strong Ethical Component | Both certifications emphasize ethical and professional standards in finance and business. |
| Career Advancement | Both help professionals advance into high-level finance roles such as Cfos Finance Directors Investment Managers Risk Analysts. |
| Versatile Application | Both qualifications open doors to roles in Corporate Finance Risk Management Financial Strategy |
Aspect | Similarities Between CFA and CIMA |
| Global Recognition | Both CFA and CIMA are internationally recognized certifications in the finance industry. |
| Rigorous Examination Process | Both require candidates to pass multiple exam levels to earn the qualification. |
| Work Experience Requirement | Both require a minimum period of relevant work experience to obtain the final designation (CFA: 4,000 hours, CIMA: 3 years). |
| Strong Ethical Component | Both certifications emphasize ethical and professional standards in finance and business. |
| Career Advancement | Both help professionals advance into high-level finance roles such as Cfos Finance Directors Investment Managers Risk Analysts. |
| Versatile Application | Both qualifications open doors to roles in Corporate Finance Risk Management Financial Strategy |
Level | CFA Salary (USD) | CIMA Salary (GBP) |
| Entry-Level | $60,000 – $80,000 (Financial Analyst, Junior Portfolio Manager) | £30,000 – £40,000 (Assistant Management Accountant, Junior Financial Manager) |
| Mid-Level | $100,000 – $150,000 (Senior Analyst, Portfolio Manager, Investment Consultant) | £50,000 – £70,000 (Management Accountant, Financial Controller, Business Analyst) |
| Senior-Level | $200,000 – $400,000+ (Portfolio Manager, Director, Chief Investment Officer) | £80,000 – £150,000 (Finance Director, CFO, Senior Business Strategist) |
CFA vs CIMA: Career Opportunities
The table below is a detailed career scope of both CFA vs CIMA in its various aspects.
| Aspect | CFA | CIMA |
| Global Career Scope | Strong demand in New York London Hong Kong Singapore | Strong international prospects in the UK Europe Asia |
| Industry Relevance | Ideal for roles in Financial Institutions Asset Management Firms Investment Banks Hedge Funds | Suitable for diverse industries including Corporate Finance Risk Management Consulting Executive Management |
| Specialization | Focuses on Financial Markets Investment Strategies Asset Valuation | Emphasizes Business Strategy Financial Management Decision-Making |
| Key Job Roles | Investment Analyst Portfolio Manager Financial Planner Research Analyst Risk Manager | CFO Finance Manager Management Consultant Financial Accountant Business Analyst |
| Ideal For | Professionals for careers in Global Finance Investment Management High-Level Financial Analysis | Those looking for strategic roles in Finance Accounting Business Management |
Making an Informed Decision: Factors to Consider
Choosing a certification depends on individual interests and personal as well as future career goals. CIMA certification might suit more those who want to get into investment consulting or strategic financial management. CFA certification, on the other hand, is best for those who want to pursue investment analysis, portfolio management, and research analysis. Aside from that, you need to compare the eligibility criteria and exam format for each certification.
For example, CIMA demands that one should have three years of experience in investment consulting or related fields, while eligibility for CFA specifies at least a degree or equivalent plus four years of relevant full-time experience.
Further, research of the job market and careers in the particular industry would be a good consideration in judging which certification would open greater doors after completion. The idea is to get you in line with the correct qualifications and help gain core specialized skills to have a progressive career in finance.
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Conclusion
There is no denying that both CFA and CIMA are universally valued finance qualifications. However, each of these qualifications is oriented towards a different career path. CFA is for candidates interested in pursuing careers in investment management, financial analysis, and asset management, especially in major financial centres. Conversely, CIMA fits well with individuals who seek to rise to management positions in management accounting, business planning, and corporate finance across various sectors. So, the path you choose is dependent on personal career ambitions, industry preferences, and professional aspirations. With the right achievement in hand, one can walk into rewarding job openings in the global finance arena.
FAQ’s
Can I pursue both CFA and CIMA simultaneously?
Yes, there is no problem in doing both CFA and CIMA simultaneously, it's just that, it is going to be a demanding journey.
How has the global pandemic affected the CFA and CIMA professional's demand?
After the global pandemic, the demand for professionals rose worldwide due to the need for strong financial analysis and management accounting skills to navigate market volatility, assess risk, and make informed financial decisions.
Do CIMA professionals have a distinct advantage in any roles?
CIMA professionals have a distinct advantage in management accounting, business strategy, and financial analysis roles.
How do I decide between CFA and CIMA?
You shall consider your interests and career goals and see if they align. It will truly help you decide between both of them CFA and CIMA.
Who earns more CIMA or CFA?
Both qualifications have great potential to earn more but yes, comparatively CFA professionals earn a little more than CIMA professionals. But again it completely depends on factors like company, region, experience etc.
Can we do CFA after CIMA?
Yes, you can! You can do CFA after CIMA only and only if you meet the eligibility criteria to gain CIMA certification and work in management job roles.
