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Certified Management Accounting (CMA)

Summary
Requirements
Become CMA
Entrance Exam
IT Skills
Career Opportunities
Work Description
Pros
Cons
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Summary

CMA stands for Certified Management Accountant, and it is a professional certification in the domains of management accounting and financial management. This is a professional qualification in financial accounting and strategic management that is recognized around the world. Those who pass the CMA exams are awarded the CMA certification by the Institute of Management Accountants (IMA).

Certified Management Accountant course operates in a variety of settings, including manufacturing and services, public and private firms, not-for-profit organizations, government agencies, and MNCs. The Institute of Management Accountants awards the management accounting certification. Candidates must pass a two-stage exam and meet additional requirements to be considered. The Institute of Management Accountants is a non-profit educational organization established in the United States. The following are the primary organizations that provide CMA certification:

Requirements

The first requirement is to become a member of IMA (Institute of Management Accountants). IMA provides several kinds of memberships. A regular and three discounted options. You can be an IMA Professional member, IMA Student member, IMA Academic member, or Staff enrolment discount program.

Now, after becoming a member, you need to earn a bachelor’s degree from an accredited university or college. Usually, CMA candidates earn degrees in accounting, finance, economics, and general business. Candidates for the management accounting course must have two years of full-time professional experience in a row. Besides these, you need several other common skills to become a CMA.
These skills may include:

Eligibility to become a CMA

Class 10+2

Graduation

Job 

Membership

CMA test

Must pass

Must have a bachelor’s degree

Must have job experience or internship

Need to be a member of IMA

Must qualify CMA Test

With a minimum of 50 % in each subject

With minimum passing marks

Experience of at least 2 years

Member of at least one category

Pass the exam with minimum mentioned criteria

From any board or state school

From any recognized or accredited college

Experience from any esteemed company

Choose a category from IMA.

——

Become CMA

The CMA examination is in two parts. To become a CMA, you need to pass both the examinations. After passing the examination, you will get a certificate to become the CMA.

Become IMA Member-

The Institute of Management Accountants offers a variety of membership choices, including a standard membership and three discounted membership packages. Let’s see which one is ideal for you, as well as the costs connected with each option. 

  1. IMA Professional members-  The Professional membership charge is $230 per year, plus a $15 one-time application fee. Individuals who have or want to have a career in accounting or finance should join this group.
  2. IMA Student Members-  You are qualified for Student membership if you are a current student at a recognized institution or university. The annual charge is $39.
  3. IMA Academic members- Academic membership is $120 per year plus a $15 one-time application fee if you are a full-time faculty member at an authorized university.
  4. Staff enrolment discount program- If your company enrolls 5 or more employees, you will receive a 15% reduction on your membership fee, or $195 per person.

Fulfill education requirement-

 You need to enroll yourself in an accredited university or college. You need to pursue a Bachelor’s degree in the relevant courses. To qualify, you can also get a professional certification. You must complete the education requirement either before taking the certified management accounting classes or within seven years after passing it.

Fulfill the work experience requirement-

You need to work for a company for cost accounting training and experience. You should have work experience of at least 2 years. You must complete the work experience requirement either before taking the CMA test or within seven years after passing it.

Join CMA Program-

By enrolling in the CMA program after becoming an IMA member, you can become a CMA candidate.

The cost of admission to the advanced management accounting is determined by your IMA membership status. If both exam portions are not completed and passed within three years after starting the CMA program, it will expire.

Pay fees and book exam date-

Now, you need to pay the examination fees. After paying the fees, you will have to choose the examination date. You will choose a suitable exam window. After that, you will get your exam center and the date to give the examination.

Entrance Exams

The CMA examination is in two parts. To become a CMA, you need to pass both the examinations. After passing the examination, you will get a certificate to become the CMA.
 

Part 1

Part 2

Duration

4 hours

4 hours

Weightage

400 marks

400 marks

Passing percentage

45%

45%

Types of questions

100 MCQs

 2 essay scenarios

 

Syllabus

Cost Management (20%)

External Financial Reporting Decisions(15%)

Internal Controls (15%)

Performance Management (20%)

Planning, Budgeting & Forecasting Techniques (30%)

Corporate Finance (20%)

Decision Analysis (20%)

Financial Statement Analysis (25%)

Investment Decisions (15%)

Professional Ethics (10%)

Risk Management (10%)



IT Skills certification

IT Certification skills required for CMA

Scholarships for Certified Management Accounting Course-

  1. Usually to become a CMA you need to fulfill the educational requirements, for which you need to join college. 
    1. The government colleges give scholarships on the basis of minority groups. 
    2. The private colleges give scholarships based on merit or entrance exam marks.
  2. You also need coaching to study for CMA examinations. Some coaching centers also provide scholarships to the top scorer.

Internships for Certified Management Accounting-

  • As per IMA, the candidates must have two years of work experience. They have to work with a well-known company for the stipulated time.
  • Several companies hire interns of CMA
  • You can get paid as well as unpaid internships. 
  • The majority of candidates opt to complete their training at a variety of organizations, including company startups and corporations

Career Opportunities

CMA holders have a wide range of job options in domestic and international companies. It will aid in the development of your financial, accounting, and management abilities. The table below lists some of the job roles or opportunities of a CMA.

Job name

Their work

Finance Manager

They create financial reports, direct investment activities, and formulate long-term financial strategies and plans for their company.

Financial Analyst

They examine a potential investment’s financial situation to ensure that it is worthwhile. They do financial research and analysis to offer data on the profitability, stability, liquidity, and solvency of the company.

Financial Risk Manager (FRM)

A financial risk manager is knowledgeable about the market, investment, credit, and operational risks that businesses may encounter, as well as the instruments, to effectively manage them.

Corporate Controller

The financial and accounting functions of the industry are overseen by a corporate controller. Billing, accounts payable, accounts receivable, and budgeting is all included.

Cost Accountant

They keep track of and analyze all of a company’s expenses. Make financial advice and prepare asset, liability, and capital accounts.

Chief Financial Officer (CFO)

CFOs are in charge of everything from financial reporting and forecasts to investments and business financial choices.

Accounting Manager

Accounting managers will be in charge of the accounting departments’ systems operations.

Management Accountant

Financial planning and strategy will be the primary focus of management accountants, who will ensure that financial data can be turned into risk-adjusted decisions.

Salary in India

The average salary of CMA in India could Range between ₹ 1.4 Lakhs to ₹ 50.0 Lakhs per year. CMA salary in India can vary depending on many factors

Work Description

A profession as a certified management accounting job entails keeping track of a company's revenue and expenses. Private firms, public companies, and government agencies all employ certified management accountants.

The following are some of a CMA's most prevalent responsibilities:

Top recruiters for CMA

Advantages and Disadvantages of CMA-

Advantages-

  1. A CMA has a lot of earning possibilities. It is a well-paying position.
  2. CMAs are also members of the IMA, which means they have more opportunities to network and learn about career openings.
  3. The CMA certification is proof of proficiency. It is also acknowledged in several countries.
  4. For employers searching for candidates in accounting and auditing, the CMA is one of the most popular courses.
  5. At every step, people can learn something new. This helps them develop in their careers.

Disadvantages-

  1. CMA certification necessitates a significant time and financial investment.
  2. Even after you have received your degree, you will continue to learn. You’ll need to plan on continuing your education if you want to attain your career ambitions.
  3. Because of the low entry hurdle, earning the CMA is not easy. To get qualified, candidates must have a bachelor’s degree, pass a demanding exam, and have two years of continuous management accounting experience.

Pros

Cons

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