HOW TO BECOME A CERTIFIED MANAGEMENT ACCOUNTANT: Detailed Guide

HOW TO BECOME A CERTIFIED MANAGEMENT ACCOUNTANT
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Getting the Certified Management Accountant (CMA) title can help you move up in your accounting or finance career. The CMA designation is a professional title that is known all over the world and requires years of education and work experience. In this article, we talk about everything you need to know to get your Certified Management Accountant certification, including the job requirements, the average salary, and the possible exam you will write.

Certified Management Accountant

The Institute of Management Accountants (IMA) gives the professional title “Certified Management Accountant” to people who pass an exam and meet other requirements. Companies need a lot of CMAs because they are good at things like strategic management and Financial Accounting.

The CMAs’ reports add a lot of value to the company’s financial reports. They help the company’s top management understand different parts of the business, like budgeting and managing human resources. Even though their job depends on the industry they work in, they usually have to do things like complete internal audits, make budgets, and manage the company’s ledger, among other things.

What Does a Certified Management Accountant Do?

A certified management accountant (CMA) is a professional title for people who work in accounting or finance. CMAs are experts at making plans and analyzing finances. Their jobs may be different depending on what they do and what industry they work in, but in general, they do:

  • Putting together and looking at financial statements
  • Trying to guess how much money the company will make
  • Putting together and keeping track of company budgets
  • Taking care of a business’s general ledger
  • Supervising people who work in accounting or finance
  • Putting together and checking company tax returns
  • Putting together and showing financial reports
  • Having internal audits done

Certified management accountants can work as corporate accountants, cost accountants, management accountants, financial planners, financial strategists, and risk managers, among other jobs. Most of the time, they make decisions about money for the company they work for.

The Average Salary of a Certified Management Accountant

A certified management accountant usually works a full-time job that pays a salary. The salary of a certified management accountant depends on how many years of schooling they have, how much experience they have, where they live, and what services they offer. In the same way, the average certified management accountant salary across the country is $66,394, and it ranges from $18,000 to $143,000 per year. There is a wide range of salaries for CMAs in the United States, ranging from 78,146 USD to 138,889 USD for senior-level certified management accountants. Housing, transportation, and other expenses are included in the average total pay or CMA salary in the United States.

How to Become a Certified Management Accountant

To become a certified management accountant, you need to do these things.

#1. Earn a Degree

The first step to becoming a certified management accountant (CMA) is to get a bachelor’s degree in accounting, finance, or a related field. The Institute of Management Accountants (IMA) sets the rules for the Certified Management Accountant certification, so it’s important to make sure your degree course meets their needs and focuses on business.

You might also want to do an internship, which can help you gain experience in the field, make connections with professionals in the field, and figure out what kind of job you want to do with your certification.

#2. Apply for IMA Membership

The next thing to do to become a CMA is to apply to join the IMA. With your membership, you’ll have access to study materials for the CMA exam, job boards, and continuing education courses that you’ll need to keep your certified management accountant certification. Furthermore, to join, you have to fill out an application and pay the membership fee every year.

Membership in the IMA costs between $39 and $245 per year, depending on whether you are a qualified student, a regular student, or a professional.

#3. Enroll in the CMA Program

As soon as you are accepted into the IMA, you can sign up for the CMA program. Students will have to pay an extra fee of $188 to join the CMA program, while professionals will have to pay $250. You will be able to use the CMA exam support package if you use this program. Once you sign up for the CMA program, you have one year to take the CMA exam.

#4. Pass the CMA Exam

Next, you have to take the two parts of the CMA exam and pass them. Each part is a hard four-hour test with 100 multiple-choice questions and two essay questions. You have one hour to answer the essay questions. The fee for each part of the test is $311 for students and $415 for professionals.

Part 1 is about planning, performance, and analysis of finances. Thus, it covers planning, budgeting, and forecasting (20%), performance management (20%), cost management (15%), making decisions about external financial reporting (15%), internal controls (15%), and technology and analytics (15%). (15 percent ).

Part 2 is about managing money in a strategic way. It covers the skills of decision analysis (25%), analyzing financial statements (20%), corporate finance (20%), professional ethics (15%), making investment decisions (10%), and risk management (5%). (10 percent ).

#5. Gain Relevant Work Experience

After you meet the education requirements and pass the CMA exam, the IMA will give you your CMA certificate after you get the work experience they want. In fact, CMA candidates must have two years of full-time experience in management, accounting, or financial management.

You might be able to meet this requirement before passing the test, but you will also have up to seven years after passing both parts of the exam to meet the work experience requirement.

#6. Get and Maintain Your Certification

When you meet all the requirements, you will be given the CMA designation. To keep your certification, you will need to take 30 hours of continuing education courses each year, two of which must be in the area of ethics and follow the IMA’s Statement of Ethics for professional practitioners. You will also have to pay IMA membership dues and CMA maintenance dues each year.

What is a Certified Management Accountant Certification

Finance professionals who take care of all of a company’s financial needs get this certified management accountant certification. These people have a stake in the decisions that are made based on the details of the field that they learn in their accounting certifications. They learn skills that allow them to take on roles that help businesses grow in a way that is sustainable.

Accounting credentials are useful and can lead to well-paying positions for managers and executives. People have a lot of respect for a certified management accountant.

Certified Management Accountant Certification Exam

There are two parts to the CMA exam. There are both multiple-choice questions and essay questions on the test. You’ll have three hours to answer the multiple-choice questions and one hour to answer the essay questions. As you move through this hard exam, it’s necessary to show all of your work and pay close attention to the details.

Certified Management Accountant Certification Exam Registration

Join the IMA and pay a $280 CMA entrance fee to start the process of taking the CMA exam. Once that’s done, you’ll be able to study for the CMA exam and take it whenever you want.

You can schedule the CMA exam with Prometric, which is the testing partner of IMA. You can find the nearest Prometric testing center and set up your CMA exam through their online portal.

How to Study for the Certified Management Accountant Certification Exam

There are a few key things that people who pass the CMA exam the first time do. First, you need to find a good CMA study course for you. Look over the information. Look at the teacher. Get as many free previews or downloads as you can. Make sure you like the structure and are sure it will work for you.

Second, stick to a study plan for the CMA. Don’t wing it. Plan your time and activities so that they fit around your studies (not the other way around).

These are just two of the best CMA exam study tips I can give you to get you off on the right foot.

Certified Management Accountant Certification Study Materials

Not all study materials for the CMA are the same. There are many things to do. You should do your research before choosing the best CMA review course.

Some test prep businesses offer programs for professional courses, while others focus on accounting exams like the CPA and CMA. The second option might be better because you can be sure that they will focus on very specific parts of this field.

You also want to make sure you get all the features that are available. CMA study materials, flashcards, practice tests, question banks, and other tools can help you learn the subjects and test format.

Many people find that the best way to prepare for the CMA exam is to buy a program that includes tutoring or coaching. With this feature, you can get one-on-one help and attention. Similarly, if you can chat with a CMA teacher in real time, you can ask questions and learn what to improve.

How Much It Will Cost You to Become a CMA (US)

Students and professionals pay various prices for the CMA Exam. In order to become an IMA member, you must fork over $39, which includes the IMA membership fee, and $622 for the exam fees for both papers. To become an IMA member, take the exam, and earn your Certification Entrance Fee, you must pay USD 245 as a specialist.

FAQs

How many attempts can you take for the CMA exam?

No one can tell you how many times you can take the test. But some companies look at how many times a candidate has taken an exam and only consider candidates who passed on their first try.

What is the pass percentage of the CMA exam?

For both Part 1 and Part 2, 45 percent of people who take the CMA exam pass it.

What is the work environment of a CMA?

Most CMAs work in corporate offices, but some may work from home or do some tasks from home after regular business hours.

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