AAT, CIMA, Institute of Chartered Accountants – Let Us Find Out How They Compare – DiyunuwaBlog.com

Accounting is an interesting sector to join which offers multiple career paths to success. There’s AAT, CIMA, Chartered…. how do you know what is right for you? This article aims to contrast and compare the different qualifications to help you (or your children) make that decision.

AAT (Association of Accounting Technicians), CIMA (Chartered Institute of Management Accountants), and Chartered Accounting qualifications are all prestigious certifications in the field of accounting and finance. However, they serve different purposes and have distinct focuses.

And they all have their unique advantages and benefits. For many Sri Lankans the cost factor is also a key consideration.

Here’s a comparison and contrast of these qualifications.

AAT (Association of Accounting Technicians)

Level: AAT is an entry-level qualification suitable for those who are new to accounting and finance.

Focus: AAT focuses on foundational accounting and bookkeeping principles, providing practical skills for day-to-day accounting tasks.

Recognition: AAT is well-recognized globally but is particularly popular in the United Kingdom, and of course, in Sri lanka. It is valued for roles like accounting technicians, bookkeepers, and junior accountants.

Duration: The duration of AAT courses can vary, but it is typically shorter than the other two qualifications.

Membership: Upon completion, individuals can become AAT members but do not receive a chartered designation.

AAT Website

CIMA – AICPA
(Chartered Institute of Management Accountants &
The American Institute of CPAs)

The American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) came together to form AICPA & CIMA. It is an internationally powerful international alliance that promotes accounting and finance in every corner of the world, in 196 countries.

The local implication of this alliance is that, although CIMA as a qualification was well recognized globally, it was not so well known in US and Canada. With the alliance, CIMA-AICPA members find recognition everywhere, improving their professional prospects overseas.

Level: CIMA is a professional qualification designed for those aspiring to become management accountants and finance professionals.

Focus: CIMA focuses on management accounting, strategy, risk management, and financial management. It equips professionals to make strategic financial decisions for organizations.

Recognition: CIMA exams in each country are administered by the Chartered Institute of Management Accountants in the UK. So everyone sits for the same exam.

CIMA is internationally recognized and respected, with a strong presence in the UK and worldwide. The AICAP alliance strengthened this recognition, extending it to the North American continent.
CIMA is suitable for careers in management accounting, financial analysis, and strategic planning.

Duration: Completing the CIMA qualification typically takes several years, involving multiple levels of exams and practical experience requirements.

Designation: Successful CIMA candidates earn the “”ACMA” (Associate Chartered Management Accountant) designation. With more experience you get to become a “FCMA” (Fellow Chartered Management Accountant).

More recently they can also get the “CGMA” (Chartered Global Management Accountant) which is currently obtained with the same application as for the ACMA designation.

CIMA – AICPA Website

Chartered Accounting Qualifications

There are member Institutes of Chartered Accountants in many countries. In the UK they have the Institute of Chartered Accountants of England and Wales (ICAEW). The local institute is the Institute of Chartered Accountants of Sri Lanka. There are similar versions in Scotland, Ireland, Australia and New Zealand, South Africa, and Singapore among others.

Although the exams are administered locally, members of one institute can easily work in another country, even though they sit for different exams administered in their home country. And we can find many members of the Institute of Chartered Accountants Sri Lanka working across the globe.

Level: Chartered accounting qualifications are typically considered the highest level of accounting certification and are designed for experienced professionals.

Focus: Chartered accounting qualifications cover a wide range of accounting topics, including audit, taxation, financial accounting, and management accounting. They prepare individuals for senior roles, including auditing and financial management.

Recognition: Chartered accountants are highly regarded globally. Specific qualifications include ACA (Associate Chartered Accountant), ACCA (Association of Chartered Certified Accountants), and CPA (Certified Public Accountant), among others.

Duration: Becoming a chartered accountant can take several years of study and professional experience.

Designation: Successful candidates earn designations like ACA, ACCA, or CPA, depending on the specific qualification.

AICPA-CIMA Website
ACCA Global Website
Chartered Institute of Sri Lanka Website

Comparison

Entry Level vs. Experienced: AAT is entry-level and suitable for beginners, while CIMA and Chartered Accounting qualifications are designed for professionals with more experience.

Scope: AAT has a narrower scope, primarily covering basic accounting principles. CIMA and Chartered Accounting qualifications encompass a broader range of accounting and financial topics.

Career Path: AAT can lead to roles such as bookkeeper or junior accountant, while CIMA and Chartered Accounting qualifications open doors to more advanced roles like management accountant, auditor, or financial manager. Some even go on to lead the finance function as CFOs abd lead businesses as CEOs (Chief Executive Officers).

Global Recognition: CIMA and Chartered Accounting qualifications are recognized worldwide, making them suitable for international careers. AAT has a more localized focus.

In summary

The choice between AAT, CIMA, and Chartered Accounting qualifications depends on your career aspirations, experience level, and the specific role you want to pursue in the accounting and finance field. AAT is a starting point for newcomers, CIMA is for those aiming for management accounting, and Chartered Accounting qualifications are for experienced professionals seeking broader opportunities in accounting and finance.