What is Balanced scorecard?
By Haresh Ratnagrahi, Founder, HiPrep (CPA, FCA, CMA (US), CISA, CRISC)
Definition
A performance framework that measures an organisation from four perspectives: financial, customer, internal processes, and learning and growth.
Where Balanced scorecard matters
CPA (US): The global gold standard for accounting and audit. 4 Exams: 3 Core + 1 Discipline; 4 hrs Per section; 75 Passing score (0–99 scale); Prometric Test centres worldwide. Parts: FAR Financial Accounting & Reporting; AUD Auditing & Attestation; REG Taxation & Regulation.
CMA (US): The credential for management accounting and finance leadership. 2 Exam parts; 4 hrs Per part: 100 MCQs + 2 essays; 360 Passing score (0–500 scale); 3 yrs To complete both parts from your first. Parts: Part 1 Financial Planning, Performance and Analytics; Part 2 Strategic Financial Management.
Enrolled Agent (EA): The fastest route to practising US tax. 3 Exam parts (SEE); 3.5 hrs Per part: 100 MCQs; 105 Passing score (40–130 scale); 2 yrs To pass all three parts. Parts: Part 1 Individuals; Part 2 Businesses; Part 3 Representation, Practices and Procedures.
Related terms explained
Responsibility centre: A part of an organisation whose manager is accountable for specific results, such as a cost centre, profit centre or investment centre.
CMA Part 1: Financial Planning, Performance and Analytics: planning and budgeting, performance management, cost management, internal controls and analytics.
Guides that mention it
CMA Part 1 study guide: topics, plan and tips: CMA Part 1, Financial Planning, Performance and Analytics, covers external reporting decisions, planning and budgeting, performance management, cost management, internal controls and technology. Plan on 150 to 200 hours, master costing and variances early, and practise essays alongside multiple-choice questions.
How HiPrep teaches it
In HiPrep, Balanced scorecard is taught concept-first and then practised in a Prometric-style simulator. Every answer is built step by step so you see how a result is reached, explanations are available in English, Hindi, Tamil, Telugu and Kannada, and a mentor is behind the platform for doubts. Start with the free diagnostic to see where Balanced scorecard sits in your plan.