What Is a Certified Management Accountant (CMA)?
A Certified Management Accountant (CMA) is a professional designation granted by the Institute of Management Accountants (IMA) to individuals who demonstrate expertise in financial management and strategic management. CMAs are skilled in areas such as financial analysis, planning, control, decision support, and professional ethics. They are critical in helping businesses make informed financial decisions and achieve long-term financial success. The CMA certification is recognised globally and is highly regarded in the fields of corporate finance and management accounting, making it a valuable credential for professionals seeking to advance their careers in accounting and finance.
Benefits of Becoming a Certified Management Accountant (CMA)
Earning your CMA certification requires dedication, with the IMA suggesting 150 to 175 study hours for both Part 1 and Part 2 of the exam. However, the effort is undoubtedly rewarding, as becoming a CMA significantly enhances your career prospects.
Here are some key benefits of becoming a Certified Management Accountant:
- Higher earning potential: According to the IMA's 2021 Global Salary Survey, CMAs earn an average of 58% more than their non-CMA counterparts.
- Career growth: The CMA certification showcases your expertise in financial management and broadens your accounting capabilities. CMAs frequently collaborate with or join the C-suite, playing a crucial role in organisational decision-making.
- Global recognition: As an internationally respected credential, the CMA opens doors to global career opportunities and helps you stand out on the international stage.
- Prestige and credibility: Achieving the CMA certification reflects your dedication to the profession, reinforcing your expertise in management accounting.
How Certified Management Accountants (CMAs) Work?
Certified Management Accountants (CMAs) play a vital role in an organisation's financial health and strategic planning. They perform various functions, including:
- Financial analysis: Evaluating financial data to support decision-making.
- Budgeting: Creating and managing budgets to ensure optimal resource allocation.
- Forecasting: Predicting future financial performance and economic trends.
- Internal controls: Implementing and overseeing internal financial controls to prevent fraud.
- Risk management: Identifying and mitigating financial risks.
- Performance management: Analysing and reporting on business performance metrics.
- Strategic planning: Contributing to the development of business strategies and long-term financial goals.
How to Become a Certified Management Accountant (CMA)?
Becoming a certified management accountant involves several steps to ensure that candidates have the necessary education, experience, and expertise. The process includes:
- Education: Obtaining a bachelor's degree or a related professional certification.
- Experience: Gaining at least two years of relevant professional experience in management accounting or financial management.
- Membership: Joining the Institute of Management Accountants (IMA).
- Program enrollment: Enrolling in the CMA certification program.
- Examination: Successfully completing both parts of the CMA exam.
- Certification maintenance: Maintaining certification through continuing education and adherence to ethical standards.
1. Earn a bachelor’s degree or related professional certification
Earning a bachelor’s degree is the first step to becoming a certified management accountant. A degree in accounting finance, or a related field provides the foundational knowledge necessary for a career in management accounting. Alternatively, obtaining a related professional certification such as a CPA can also fulfil this requirement. The education provides essential skills in financial reporting, analysis, and strategic management. This academic background equips candidates with the analytical and technical skills needed to succeed in the CMA program and in their professional careers.
2. Gain at least two years of relevant professional experience
To qualify for the CMA designation, candidates must gain at least two years of relevant professional experience. This experience should be in management accounting or financial management, where candidates can apply their knowledge of financial analysis, budgeting, and strategic planning. The hands-on experience helps in understanding the practical aspects of financial decision-making and internal controls. Working in roles such as financial analyst, budget analyst, or accounting manager provides the necessary exposure to real-world financial scenarios, preparing candidates for the challenges of the CMA exam and their future careers.
3. Join the Institute of Management Accountants (IMA)
Joining the Institute of Management Accountants (IMA) is a crucial step in the journey to becoming a CMA. The IMA is the certifying body that offers the CMA credential and provides resources, networking opportunities, and professional development for its members. Membership in the IMA grants access to study materials, professional journals, and a global community of accounting professionals. It also provides support through webinars, conferences, and local chapter meetings, helping candidates stay updated with industry trends and best practices, thereby enhancing their professional growth and readiness for the CMA exam.
4. Enrol in the CMA program
Enrolling in the CMA program is the next step after joining the IMA. This involves registering for the CMA certification course, which includes access to study materials, exam guides, and practice tests. The program covers two parts: Financial planning, performance analytics, and strategic financial management. Each part includes various topics such as budgeting, financial reporting, internal controls, and decision analysis. Enrolling in the program ensures that candidates receive structured training and resources necessary to prepare for and succeed in the CMA exams, equipping them with the skills needed for advanced financial management roles.
5. Complete both parts of the exam.
The CMA exam consists of two parts, each testing different aspect of management accounting and financial management. Part 1 focuses on Financial Planning, Performance, and Analytics, while Part 2 covers strategic financial management. Candidates must pass both parts to earn the certification. Each exam part includes multiple-choice questions and essay questions, assessing candidates' knowledge, analytical skills, and ability to apply concepts in real-world scenarios. Thorough preparation, using study materials and practice exams provided by the IMA, is crucial for success. Passing these exams demonstrates a comprehensive understanding of advanced accounting and strategic financial management.
6. Maintain the certification.
Maintaining the CMA certification requires ongoing professional development and adherence to ethical standards. Certified management accountants must complete 30 hours of continuing professional education (CPE) annually, including two hours in ethics, to stay current with industry practices and regulations. This ensures that CMAs continue to enhance their skills and knowledge, keeping them relevant in the ever-evolving field of management accounting. Additionally, CMAs must adhere to the IMA's statement of ethical professional Practise, maintaining high ethical standards in their professional conduct. Regularly updating their knowledge and skills helps CMAs provide valuable insights and maintain their professional credibility.
Where to take the CMA exam?
The CMA exam is offered at various prometric testing centres worldwide, providing flexibility for candidates to choose a convenient location. Prometric centres are equipped with secure, standardised testing environments to ensure a fair and consistent examination process. Candidates can schedule their exams online through the prometric website after registering with the IMA. The exams are available during specific testing windows throughout the year, allowing candidates to plan their study schedules accordingly. Ensuring access to a nearby testing centre and familiarise oneself with the exam format can help reduce stress and improve performance on the exam day.
How long does it take to earn a CMA certification?
Earning a Certified Management Accountant (CMA) certification typically takes around 12 to 18 months. This includes time for studying for and passing two rigorous exams, as well as fulfilling the work experience requirement. Candidates often spend about 150 to 200 hours preparing for each exam. The total duration can vary based on individual pace, prior knowledge, and study methods. Completing the certification also depends on maintaining active membership with the Institute of Management Accountants (IMA) and adhering to continuing education requirements.
Conclusion
Becoming a Certified Management Accountant (CMA) is a structured process that involves education, experience, and examination. The certification opens the doors to advanced roles in financial management and strategic planning. Maintaining the certification through continuous education and ethical practice ensures that CMAs remain valuable assets to their organisations. For those considering this career path, securing financial support such as a CA loan from Bajaj Finance can ease the journey, providing the necessary resources to achieve professional success.
