What Is a Certified Management Accountant (CMA)?
A certified management accountant (CMA) is a professional designation earned by accounting and finance professionals in the United States.
The CMA credential signifies financial planning, analysis, control, decision-making, and reporting expertise.
CMAs are employed in various industries, including manufacturing, banking, insurance, and healthcare.
What Does a Certified Management Accountant Do?
The specific duties of a certified management accountant depend on the employer.
However, there are some typical duties associated with the position, such as:
- Analyzing financial statements
- Preparing budgets
- Forecasting financial results
- Developing cost-saving strategies
- Making recommendations to improve financial performance
- Assisting with the development and implementation of accounting information systems
- Providing training and mentorship to less experienced finance and accounting staff
How to Become a Certified Management Accountant
Several steps must be completed to become a certified management accountant.
First, candidates must meet the eligibility requirements, which include holding a bachelor's degree from an accredited institution and completing two years of professional experience in management accounting or financial management.
Next, candidates must pass the CMA exam administered by the Institute of Management Accountants (IMA).
The exam consists of two sections, each of which must be passed with a score of 360 out of 500.
Once the exam is completed, candidates must apply for and receive the CMA credential from the IMA.
How Can a Certified Management Accountant Help Businesses?
A certified management accountant can help businesses by providing expert financial planning, analysis, control, decision-making, and reporting guidance.
This can result in improved financial performance and cost savings for the organization.
In addition, a CMA can assist with developing and implementing accounting information systems and provide training and mentorship to less experienced finance and accounting staff.
Benefits of Hiring a Certified Management Accountant
The main benefits of hiring a certified management accountant are:
- Improved financial performance
- Cost savings
- Expert guidance on financial planning, analysis, control, decision-making, and reporting
- Development and implementation of accounting information systems
- Training and mentorship for less experienced finance and accounting staff.
CMA vs CPA
While both CMAs and CPAs are financial professionals, there are some key differences.
First, a CMA must have a bachelor's degree in Financial Accounting, whereas a CPA needs to earn a bachelor's degree in accountancy.
Second, the CMA exam covers financial planning, analysis, and reporting topics, while the CPA exam focuses on taxation, auditing, and attestation.
Lastly, the CMA is under the Institute of Management Accountants, while the CPA is under the American Institute of Certified Public Accountants.
The Bottom Line
A certified management accountant is a professional designation earned by accounting and finance professionals in the United States.
The CMA credential signifies financial planning, analysis, control, decision-making, and reporting expertise.
CMAs are employed in various industries, including manufacturing, banking, insurance, and healthcare.
To become a CMA, candidates must meet the eligibility requirements, which include holding a bachelor's degree from an accredited institution.
It also needs two years of professional experience in management accounting or financial management.
Candidates must also pass the CMA exam, which the Institute of Management Accountants administers.
CMAs can help businesses by providing expert financial planning, analysis, control, decision-making, and reporting guidance. This can result in improved financial performance and cost savings for the organization.
FAQs
1. What is a certified management accountant?
A certified management accountant (CMA) is a professional designation earned by accounting and finance professionals. The CMA credential signifies financial planning, analysis, control, decision-making, and reporting expertise.
2. How do I become a certified management accountant?
To become a CMA, candidates must meet the eligibility requirements, which include holding a bachelor's degree from an accredited institution and completing two years of professional experience in management accounting or financial management. Candidates must also pass the CMA exam, which the Institute of Management Accountants administers.
3. What are the benefits of becoming a certified management accountant?
The main benefits of becoming a CMA are improved financial performance, cost savings, and expert guidance on financial planning, analysis, control, decision-making, and reporting.
4. What is the difference between a CMA and a CPA?
CMA must have a bachelor's degree in Financial Accounting, whereas a CPA needs to earn a bachelor's degree in Accountancy. Second, the CMA exam covers financial planning, analysis, and reporting topics, while the CPA exam focuses on taxation, auditing, and attestation. Lastly, the CMA is under the Institute of Management Accountants, while the CPA is under the American Institute of Certified Public Accountants.
5. How can a certified management accountant help a business?
A certified management accountant can help businesses by providing expert financial planning, analysis, control, decision-making, and reporting guidance.
