A certified management accountant (CMA) is a globally recognized professional certification credential that demonstrates expertise in various accounting and finance disciplines, including corporate finance, management accounting, financial planning, financial analysis, and professional ethics. It is offered through the Institute of Management Accountants (IMA) and is obtained by passing a two-part exam.
Uncertified accountants or finance professionals who already have their certified public accountant (CPA) certification might consider obtaining their CMA to advance their careers. The certification is recognized in most countries and the expertise and knowledge gained from earning a CMA can be very valuable to corporations who need a big-picture strategist, and not just an individual contributor.
Typically, most CMAs work with upper-level management and play a major role in making important decisions concerning a company’s finances. A CMA is focused on data analytics to drive decision making, as well as structuring forecasts and business strategies. Obtaining a CMA is beneficial for those interested in strategic management or executive career paths.
A CMA qualification gives finance and accounting professionals the opportunity to work in strategic positions within finance teams. This usually takes place in enterprise-sized companies, because these organizations have more complex business operations. CMAs earn higher salaries than their counterparts who do not have the certification and can work in a wide variety of industries, such as educational institutions, government agencies, and other large corporations. These positions can vary from financial analysts, controllers, accounting managers, or CFOs.
When an individual obtains a CMA certification, they will likely experience several benefits, including:
A CMA licence is highly regarded in the accounting industry and is deemed valuable by employers. So, the process to obtain the certification is lengthy and rigorous. Those who are able to successfully complete all requirements and demonstrate they understand key financial processes can open the door to additional opportunities in the corporate accounting and finance fields.
Per the IMA, the following prerequisites are needed in order to obtain a CMA:
The exam consists of two parts, each containing 100 multiple choice questions and 2 essay questions. Each test has a time limit of four hours, and both tests need to be passed within three years of each other.
Part 1 of the test consists of the following topics:
Part 2 of the test covers the areas of:
A CMA designation is for professionals who work in strategic management and corporate financial accounting. A CMA certification focuses on executive-level and management duties. It doesn’t get as much public recognition as a CPA license, but it’s much harder to obtain and makes individuals who have a CMA more desirable to employers. A CMA also covers topics that are not included in the CPA certification and acts as more of an advisory role than a CPA would.
A CPA is more well known in the accounting community and often gets increased recognition than a CMA because it’s public facing and is held by more professionals. An individual with a CPA certificate is licensed to practice public accounting and perform tasks such as preparing tax returns and tax auditing and compliance. CPAs are usually a prerequisite to work for public accounting firms and many other corporate accounting positions.