What is a Certified Management Accountant?
CMA is a professional financial certification offered by the Institute of Management Accountants (IMA), USA. The course is designed to help accountants and finance professionals gain specialised knowledge in the field of financial planning, analysis, control, decision support, and professional ethics.
The CMA course focuses on developing a comprehensive understanding of the principles, skills, and practices of management accounting. To become a professional CMA, you need to clear the CMA exam, which consists of two parts:
||Topics it Covers
||Financial Reporting, Planning, Performance, and Control
- Financial Reporting (15%)
- Planning & Budgeting (20%)
- Performance Management (20%)
- Cost Management (15%) Internal Control & Decision Making (15%)
- Professional Ethics & Corporate Governance (15%)
||Strategic Financial Management
- Financial Statement Analysis (20%)
- Financial Forecasting and Risk Management (10%)
- Professional Ethics (15%)
- Decision Analysis & Working Capital Management (25%)
- Investment Decisions, Global Finance, Financial Derivatives, and Mergers & Acquisitions (10%)
Each part of the exam consists of 100 multiple-choice questions and two 30-minute essay questions.
What Does a CMA Do?
A Certified Management Accountant is a highly reputed profile that is sought by thousands of finance professionals. A career in CMA offers various growth opportunities and lucrative benefits. Working as a CMA, you will be asked to work on the following job responsibilities:
- Analyse financial data and provide strategic recommendations to management.
- Prepare financial statements and analyse trends in financial performance.
- Develop and implement financial processes and procedures.
- Monitor cash flow, balance sheets, and income statements.
- Analyse budgets and financial reports.
- Prepare and present financial presentations to management.
- Monitor compliance with accounting regulations and procedures.
- Ensure the accuracy of financial data and reports.
- Develop strategies to improve profits and efficiency.
- Participate in financial audits and provide support during the process.
Why is CMA a Popular Course in Finance?
The reason for the soaring popularity of the CMA course is due to the various perks it offers with its certification. CMA is a globally recognised professional financial certification that allows candidates to earn high-profile jobs and build profitable careers.
Some other reasons why CMA is becoming highly prevalent and prominent are:
The Program Enables You to Develop Core Knowledge in Finance
A CMA certification program provides a comprehensive education in management accounting and related financial topics. It covers all the relevant topics and aspects of accounting in-depth, allowing candidates to enhance their knowledge and develop innovative solutions for the present accounting challenges.
A course in CMA provides you with the foundation to take on a wide range of financial management roles apart from just being an accountant. Having a deeper understanding of all related financial jobs, you will be able to generate better results for your organisation.
Becoming CMA Certified Significantly Improves Your Marketability
One of the best advantages of becoming CMA certified is it opens up a world of opportunities for you. CMA is a highly reputed certification acknowledged by the majority of top organisations in the world. Completing your certification sets you apart from other financial professionals as you gain deep knowledge and cutting-edge skills to excel in various financial management roles.
Most organisations prefer candidates with CMA certification as they are already proficient in financial tools and techniques. Hence, you stand out in job searches and can avail of better job opportunities and higher compensation.
The Course Helps You Gain Professional Recognition Globally
CMA certification is one of the finest financial certifications with high-value regard from over 150 countries in the world. The course provides core knowledge in financial accounting, enabling candidates to take on leadership roles in esteemed organisations.
With over 100,000 certifications earned globally, CMA is now considered a reputed course in the finance field and offers better jobs for candidates with CMA certification.
CMA Course Keeps You Updated with the Current Financial Issues
The course structure of the CMA certification is devised in accordance with the latest financial rules and trends. This allows candidates to learn finance with respect to real-world ethics, which helps them gain pragmatic knowledge of the field and the tools used in it.
As you are updated with the latest trends and best practices in the management accounting field, you gain a competitive edge in the job market. Therefore, you can acquire high-salaried jobs and better positions in the market, which can not be availed without having CMA accreditation.
You Get to Network with Right Financial Professionals
Networking is important in today’s business world, whatever industry you may be catering to. With the right networks and connections, you can substantially improve your career growth and achieve higher prospects. CMA has extensive alumni of over a hundred thousand members, which help you earn good and reputed positions in esteemed organisations.
Apart from it, with the CMA certification, you can open the door to numerous networking opportunities through which you can find mentors and build relationships to help advance your career.
Exponential Growth in the Financial Field
A prominent reason for more and more financial students to choose CMA for their education is the exponential growth you get with CMA certification. As the certification is professionally acknowledged by most organisations in the world, you start your career with the best job profiles in the market.
This strong start to your career further leads to various benefits as you move along with your career, your career prospects significantly improve and you get to score the best and most rewarding jobs in the financial sector.
Start Your CMA Journey With IMS Proschool
Why CMA is Preferred by People Not Keen on CPA/Audit Career?
Both CPA and CMA are great professional courses having their unique characteristics. The reason to choose one over another is not that one course is better than the other. The choice must be made considering the personal career ambitions and interests of candidates.
Here are some reasons why people prefer CMA over CPA:
CMA Offers a Diverse Range of Career Opportunities than CPA
One of the reasons to choose CMA over CPA is the more career opportunities it presents before the candidates. With a CMA certification, candidates can opt for a wide range of career options in management accounting, financial analysis, and operations management.
Conversely, with a CPA certification, you may get stuck with fewer job choices and will limit yourself to more taxing and auditing job profiles.
Lower Cost of Education in CMA
The cost of studying for the CMA exam is significantly lower than the CPA exam. This makes it easier to pursue this certification for candidates as they need to spend less on their education. It is a substantial reason to choose CMA over CPA.
CMA Aids in Higher Flexibility than CPA
The CMA exams are offered twice a year, making it possible to create a simple studying schedule and clearing your exams with effect. As opposed to CMA, CPA is conducted only once a year which keeps candidates highly pressurised not to lose the opportunity of clearing their exam.
CMA Offers an Extensive Knowledge Base for Students
The CMA exam covers a broad range of financial topics like Financial Planning, Performance and Control, Financial Statement Analysis, Corporate Finance, Decision Analysis, Investment Decisions, Risk Management, Professional Ethics, and Strategic Management Accounting.
All these topics are thoroughly discussed and taught to the candidates, allowing them to gain expertise in a variety of areas. This extensive knowledge of the field helps score better job opportunities.
You Can Specialise in Specific Accounting Areas in CMA
The CMA certification allows you to specialise in specific areas of accounting and finance, like cost accounting or corporate finance. This can be a great way to differentiate yourself from other candidates in the job market who are competing with you for the same job profiles. As you will have better proficiency in those areas, you will ideally be a better acquisition option for any company.
*Note that CPA in any way is not inferior to CMA. Both have their attributes, advantages, and disadvantages. So, you must choose wisely which subjects you are interested in to get yourself educated.
Learn More About CPA Certification!
How to Become a CMA Professional?
To become a Certified Management Accountant (CMA) professional, you need to complete a two-part exam administered by the Institute of Management Accountants (IMA).
Eligibility for the CMA Exam
- The candidate must have a bachelor’s degree or higher from a regionally accredited university or college.
- The candidate must have two continuous years of professional experience in financial management or management accounting.
Having cleared these conditions will make you eligible for the CMA examination.
The CMA is a 500 marks examination in which you need to score a total of 360 or higher to pass the examination. IMA recently reported that the part 1 exam of CMA has a worldwide pass rate of 45%.
Having said that, it must be evident that clearing this exam is no piece of the cake and requires extensive preparation for the exam. That is why it is advised to seek a professional partner to prepare and complete the CMA course.
How Does IMS ProSchool Help You Clear the CMA Examination?
IMS ProSchool provides students with comprehensive online video lectures, practice tests, study materials, and mock exams. Through these resources, students can gain the knowledge and skills they need to succeed on the CMA exam.
The online video lectures provide an in-depth explanation of all the topics included in the CMA syllabus. All the teachers recruited by IMS ProSchool are highly proficient in CMA subjects and have substantial experience working as leading finance professionals in the world’s biggest financial corporations.
The teachers at IMS ProSchool design several practice tests and mock exams that help students familiarise themselves with the exam format and hone their test-taking skills. Additionally, IMS ProSchool also provides personalised guidance and feedback to help students identify areas of improvement.