Certified Management Accountant


            The certified management accountant is an accounting professional who has all the necessary management skills being necessary for the purpose of making various kinds of financial decisions. He is mainly finance and accounting specialist. To ensure that, there is an advancement in career then, the people in the finance field work towards the area of ensuring that they carry out the course of the certified management accountant. There is some kind of education, testing and experience requirement which is being required by the people to become certified management accountant.


            Certified management accountant has various categories of skills being available to him in the form of financial planning, analysis, decision, control, support, ethics, and skills which are being in demand for the finance management team of the organization. There are more than 50000 certified management accountants being working in the countries around the world at the present time. These people have necessary skills for the purpose of making sure that, best results are being generated in the area of doing the management accounting related tasks.


Requirements to become Certified Management Accountant


            To ensure that the person becomes certified management accountant, he is required to ensure that, he passes the exam in the name of the certified management accountant. He is also required to attain experience and commitment towards continuous learning so that, he achieves his targets without any kind of trouble or issue arising to him. The following are the steps which are required to be undertaken by the person for ensuring that, he becomes certified management accountant.


a.       Obtaining bachelor degree: The first requirement for becoming a management accountant is that the person should have a bachelor degree in the name of accounting, finance or economics. These individuals have focused on management related tasks to a larger extent and they have to make sure that, proper results are being generated by them.


b.      Work experience: To ensure that the person is being designated as CMA then, it is going to be required by him to have experience of at least 2 years and the experience should also be of the work related to management accountant. The person can either work full time or full time for the purpose of doing the tasks. In case of work experience, the work should be at least 20 hours per week. If the person is being worked part-time then, his 4-year experience will be considered only as a 2-year experience.


c.       Membership of IMA: the Third requirement for the person is to ensure that, he has a membership with IMA. This is the institution without whose degree, it is not going to be possible for the person to make sure that, whether proper results are being generated or not.


Clearing the Exam


To ensure that, a person becomes CMA, it is essential to clear the exam. The exam is being required to be cleared in two different parts. It is essential to have at least 2 months study for each of the exams.  The exams are being held for 4 hours. In the case of four hours, 3 hours are for multiple choice questions and remaining one hour is for an essay. The test covers questions for testing the knowledge of the person regarding financial statement analysis, risk management, and others. A person has to get at least 50% marks for ensuring that, best results are being carried out or not. The passing marks for essay exam are 72%.


Finding Job


Once the individual passes the exam, the next task to be carried out by the person is to ensure that, jobs are being obtained.




Parts of the Exam


Section Name

Section Time

Section Format

Section Description

Business Analysis

3 hours

110 MC

Business Economics, Global Business, Internal Controls, Quantitative Methods, Financial Statement Analysis

Management Accounting and Reporting

4 hours

140 MC

Budget Preparation, Cost Management, Information Management, Performance Measurement, External Financial Reporting

Strategic Management

3 hours

110 MC

Strategic Planning, Strategic Marketing, Corporate Finance, Decision Analysis, Investment Decision Analysis

Business Applications

3 hours

3-7 written-response essays and problems

All topics from parts 1, 2, and 3, plus organization management, organization communication, behavioral issues, and ethical considerations


Benefits of CMA Certification


a.       It provides the capability to the person to ensure that, he has the ability and capability of ensuring that, the knowledge base is being expanded to a larger extent.


b.      The certification helps the person to be distinguished from the people in the same group.


c.       Helps in providing recognition to the achievement of the person.


d.      The person is also able to have expanded career opportunities. It is being provided that the person will have an expansion of at least 27% of income in comparison to other professionals who are doing the tasks.


Benefits of CMA Certification to Companies


a.       Identification of motivated professionals for the purpose of hiring recognition, and advancement of the organization.


b.      It comes to a higher level of service and has increased in the level of credibility to a greater extent.


c.       Helps in achievement and maintenance of high integrity knowledge and competence of the people who are doing the tasks.


Who are Certified Management Accountants


  •          CFO, Foundations Behavioural Health
  •          CFO/Treasurer, First Savings Bank
  •           Director of Finance & Accounting, Marriott International


Section Name

Section Time

Section Format

Section Description

Auditing and Attestation

4.5 hours

3 MCQs tests and 2 simulation tests

This section cover knowledge of auditing procedures, generally accepted auditing standards and other standards related to attest engagements and the skills needed to apply that knowledge in those engagements.

Business Environment and Concepts

2.5 hours

3 MCQ tests

This section covers knowledge of the general business environment and business concepts that candidates need to know in order to understand the underlying business reasons for and accounting implications of business transactions and skills needed to apply that knowledge.

Financial Accounting and Reporting

4 hours

3 MCQs tests and 2 simulation tests

This section covers knowledge of generally accepted accounting principles for business enterprises, not for profit organizations and governmental entities and the skills needed to apply that knowledge.

Regulation

3 hours

3 MCQs tests and 2 simulation tests

This section cover knowledge of federal taxation, ethics, professional and legal responsibilities and business law and the skills needed to apply that knowledge.




















 













       Director of Technical Accounting & Reporting, Microsoft

  •         Finance Manager, Habitat for Humanity
  •         Financial Controller, Johnson & Johnson
  •         Vice President of Finance, Southeast Corporate Federal Credit Union


How to become Certified Management Accountant


a.       Completion of educational requirements


b.      Becoming a member of AICPA


c.       Clearing all four parts of the exam


d.      Satisfaction of requirement of experience


e.       Complying with standards of ethical conduct


Retaining Certification


a.       Continuous education


b.      Maintenance of membership


c.       Complying with standards of ethical conduct.


 



The difference in CPA and CMA


Certification organized by

Basis

CPA

CMA

American Institute of CPA

the certified management accountant institute

Number of levels

It has only one level to clear

It has two parts, wherein, the first part is related to the financial reporting, planning performance and control and second part is related to the financial decision making

Entry barrier

Entry in CPA is tougher in comparison to CMA

Entry in  CMA is easier in comparison to CPA

Exam Window

January – February

April – May

July – August

October - November

January

February

May

September

October

Duration of exam

The person has to site for 14 hours for the exam

The person has to give exam two times 4 hours each

International recognition

CPA is recognized in USA

CMA is not just recognized in USA but it is also being recognized in 100 other countries also.

Job titles

Public Accountant

Internal Auditor

Management Accountant

Management and Cost Accountant

Financial Accountant

Financial Risk Manager

Management Consulting

Performance Management

Salary difference

The salary for CPA and CMA is the same for fresh individuals but for mid-level managers, the difference in salary is around $10000.

CMA has higher salary in comparison to CPA.


 


 


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