Key Differences Between ACCA vs CIMA

Depending on what sector your business is in, both qualifications are worth strongly considering. Each organisation tends to prefer one over the other, depending on the skill set required for the roles they are recruiting for. However, both qualifications are incredibly popular, recognised across most businesses in the UK and among the most desired accountancy qualifications available.

Both qualifications are great for candidates to have alongside soft skills, and are good to look for during the recruitment process as well. During the interview process, you can ask about which qualification they have and what they consider their main capabilities in accounting to be. Your candidates’ capabilities will influence which qualification they choose. As a prospective accountant, they have probably chosen the qualification that suits them best, depending on whether they are looking for management-related positions or more technical roles. Through this guide, you can work out which qualification will best suit the type of business you run, including your sector and the skills you are looking for from your candidates.

ACCA vs CIMA qualifications for new recruits

Both courses are three years long. In order to choose between ACCA and CIMA, consider the money you may be required to spend on exam fees. The exam fees for ACCA are usually between £1,500 and £2,000, while fees for CIMA are from £2,500 to £3,000.

CIMA is an abbreviation that stands for the Chartered Institute of Management Accounting, which is the body that awards the qualification. The qualification involves a combination of accountancy, financial and performance management training. You may prefer CIMA if you are recruiting within the financial sector. CIMA appeals to candidates who are charismatic, strong strategists and want to build on their people management skills as well. A financial accountant looks at how money moves throughout a company, including making recommendations regarding spending and saving costs. This course requires candidates to complete three years of work experience on top of their exams in order to achieve the qualification.

ACCA stands for the Association of Chartered Certified Accountants. The ACCA qualification focuses more on the technical and financial aspects of accounting. Unlike CIMA, it does not focus on management training related to accountancy, instead focusing more on accountancy principles and the technical side, including tax accountancy and auditing. You may want to rule out ACCA qualifications if you are recruiting within the financial sector, but it will be useful if you are a small business looking for a technically focused accountant. ACCA generally appeals to candidates who are skilled in mathematics and compliance. It is a good qualification to look out for if you are recruiting a tax accountant. They help businesses to calculate and pay the right amount of tax on earnings and investments, and must have an up-to-date understanding of the law surrounding this. This course requires candidates to complete three years of work, plus three years of supervised accountancy work experience on top of exams.

ACCA vs CIMA sectors

If you are recruiting for an entry-level position, it is worth noting that both qualifications are widely accepted by UK firms and organisations at this level. However, you may wish to assess candidates on the basis of which qualification they have chosen over the other. This is because both the CIMA and ACCA qualifications relate to different sectors. CIMA is most relevant to management accounting, and so also applicable to finance accounting in corporate organisations. The skills that candidates learn through CIMA give them a greater understanding of strategic approaches within accounting, and so will be more useful if you run a large organisation. However, the ACCA qualification is more flexible. It also gives candidates the opportunity to work as a recognised self-employed accountant, and is useful to consider if you are recuiting for a practice working with clients. This qualification is more appealing if you are a smaller business.

ACCA vs CIMA for working locally, nationally or globally

Consider whether ACCA or CIMA is more popular in your area. Both qualifications are accepted in the UK, but if your company is global, you should check whether the ACCA qualification is recognised in the other relevant countries. As these qualifications are considered valuable by most accountancy firms in the UK, you should ideally consider both from candidates. On a global basis, ACCA and CIMA qualifications provide different benefits to candidates, which you may want to consider as well. Gaining a CIMA qualification means that candidates can use the globally recognised title of Chartered Global Management Accountant and they become part of a global network of chartered accountants around the world. In India, a CIMA qualification is more competitive than an ACCA qualification. CIMA offices are based in the UK. Similarly, having an ACCA qualification will mean that candidates will be recognised in over 100 countries, and will give them the opportunity to partner with local accountancy bodies in many of these countries. You will find more of this qualification in Europe and the UK; ACCA offices are based in the UK as well.

Summary of the pros and cons of ACCA and CIMA qualifications

Now you should have a good overview of ACCA vs CIMA qualifications, and what they both entail. It is worth looking over this brief summary of the pros and cons of each, so that you can adequately assess your candidates in terms of their accountancy qualifications.

Pros of CIMA qualifications:

• Globally recognised title of Chartered Global Management Accountant;
• Candidates have solid background in management and strategy as well as accountancy skills;
• More applicable if you are a larger business;
• More applicable if your business is in the financial sector.

Cons of CIMA qualifications:

• Less applicable for self-employed accountancy or working for smaller firms;
• Less focused on tax and auditing skills;
• Management training might not be relevant to your business;
• More costly to enrol in than ACCA.

Pros of ACCA qualifications:

• Recognised in 100 countries;
• Candidates have solid tax and auditing skills;
• Candidates can work for you on a self-employed basis;
• Less costly to enrol in than CIMA.

Cons of ACCA qualifications:

• Less recognised globally than CIMA;
• Candidates do not have the same management or strategic training gained through CIMA;
• Less relevant for corporate organisations or firms;
• Less preferred in the financial sector.

Both CIMA and ACCA qualifications make candidates an exciting prospect for accountancy departments and companies around the world. However, you should consider which qualification is right for your business first before choosing between candidates with these qualifications. Accountancy is a broad field that is growing globally and can encompass strategy and performance management, as well as auditing and tax. It is best to decide what your accountancy role will be mostly focusing on, and the kind of specifications that you will be looking for, as well as the location of your business.