The Certified Management Accountant profession focuses on accounting and financial management for businesses and organizations (CMA). The possession of this qualification serves as proof that the holder is an authority in both financial accounting and strategic company management. As a result, corporate decision-making is given more attention during the CMA education process than audits, taxes, and other fundamental accounting concepts.
Certified Management Accountant
A CMA is an expert in management accounting and corporate finance. Informing business strategy with data and information from the financial and accounting disciplines is their area of competence. According to the IMA, CMAs “can explain the fundamental “why” of data, not merely the “what.” To develop in their professions, land more jobs, and make more money, CMAs pursue certification. Their ultimate aims are often top business positions like chief executive, chief operational, or chief financial officer. Positions like cost accountant, corporate accountant, budgeter, risk manager, and financial strategist typically fall under the CMA job path.
Obtaining the designation of Certified Management Accountant is entirely optional, and this must be remembered. Owners of the certificate are not granted any special privileges or benefits. Nevertheless, obtaining a CMA can aid in your professional success. Above all, the CMA is acknowledged globally, in contrast to a number of other accounting certificates. It is widely considered the international benchmark for excellence in organizational management and accounting.
What Does a CMA Do?
A qualified management accountant can serve in a variety of capacities within an organization. A CMA can carry out the routine tasks of a cost accountant while also providing strategic advice based on the data they’ve crunched. In both public and private businesses, CMAs can be found performing corporate, consulting, or other types of management accounting.
Job Description and Responsibilities for CMAs
- Budgeting
- Presenting financial analysis in reports
- predicting for business
- Accounting teams to mentor
- Develop a plan to cut costs and boost revenue.
- Provide investment advice
- Maintain strong contact with the management and executive teams
CMA Career Path
A CMA is not only in a unique position for career progression chances, they also benefit from greater earnings and more varied employment than a standard accountant. A CMA is the best candidate for a controller, vice president of finance, chief operating officer (COO), or chief executive officer role due to their managerial expertise. Frequently, a business may train an accountant to earn their CMA certification and get them ready for a position in senior management.
Salary of Certified Management Accountant
The global average CMA salary is $72,430. The typical CMA salary in the US is $105,000. Using estimates from the U.S. Department of Labor, this is nearly $30,000 more than the Certified Public Accountant (CPA) wage average. The value that CMAs contribute and the intriguing opportunities they can explore are reflected in CMA remuneration.
Salary for CMAs versus Non-CMAs
Because of their special abilities, certified management accountants are widely sought after. They make more money than their colleagues without credentials as a result. The typical total remuneration for CMAs in the Americas is $124,000, compared to $110,000 for non-CMAs. And the CMA has a significant influence over raising earning possibilities globally.
CMAs make 58% more money overall than non-CMAs do globally. Regardless of their position within a company, CMAs receive this greater compensation. In reality, the typical base compensation of CMAs in lower management is 90% higher than that of non-CMAs in a comparable job.
CMA Certification Salary vs. CPA Certification Salary
Professionals in the U.S. who hold a CMA (Certified Management Accountant) or CPA (Certified Public Accountant) qualification make more money than those who don’t. Additionally, earning potential is further increased by obtaining both qualifications.
CMA Salary vs. the Non-CMA Salary
- CMA owners receive median total remuneration that is 59% higher;
- CPA holders receive a median total remuneration that is 106% higher; and
- Holders of both the CMA and CPA designations make 149% more money overall.
Increases to the CMA Salary
Salaries for CMAs (Certified Management Accountants) are rising, and even during the COVID-19 pandemic, most CMAs stated that their pay was either going up or staying the same.
Every year, more professionals get CMA certified; in fact, it’s the credential with the fastest global growth. International businesses recognize the significance of employees with highly specialized abilities in financial accounting, strategic management, risk management, and decision-making, and the CMA is the “gold standard” of management accounting credentials.
Salary for CMAs versus Non-CMAs
Because of their special abilities, certified management accountants are widely sought for. They make more money than their colleagues without credentials as a result.
The typical total remuneration for CMAs in the Americas is $124,000, compared to $110,000 for non-CMAs. And the CMA has a significant influence over raising earning possibilities globally. CMAs make 58% more money overall than non-CMAs do globally.
Salary of a US CMA in the US (experience-based)
Location:
Your compensation is significantly influenced by the nation in which you choose to work. Because some countries have more developed economies than others, CMA salaries vary from one nation to the next. Check out Numbeo to compare the cost of living in each nation before making a choice.
Career profiles:
After earning your US CMA degree, you will have a variety of employment options. Despite being a professional degree, the US CMA gives you the opportunity to develop a range of financial management skills. Although the discipline of financial management is large, there are various subfields within it that can help you earn more money. Let’s examine some of them.
Industry:
If you want to work in a field where you may earn more money, you must choose carefully. Strong industries change in reaction to outside influences and consumer trends in every nation. The proper industry must be chosen if you want to grow and earn more money. Despite the pandemic, a few industries are nevertheless doing well on a global level. Among them are:
- Healthcare
- Technology
- Food
- eCommerce
- Beauty
- Telecom
- Finance & Banking
CMA positions are in high demand and call for rapid thinking and decision-making abilities. In addition to the CMA course’s ability to help with exam preparation, a reputed coaching facility can assist you in learning the required skills. One of the greatest coaching programs for CMA is provided by Zell Education. The Institute for Management Accountants, USA, awards the designation “Certified Management Accountant” (CMA). All students who have completed their 10+2 requirements or the equivalent in high school are eligible for this global certification.
Which country offers the highest opportunities to US CMA?
UAE has the most potential for US CMAs because there are so many foreign firms there that need financial managers to steer them in the proper way.
Certified Management Accountant Requirements
To become a Certified Management Accountant, you must pass the exam offered by the Institute of Management Accountants (IMA). As a Certified Management Accountant, you will research KPIs, produce project ideas, and offer guidance to people and organizations in order to optimize any potential financial gain.
#1. Get a bachelor’s degree
to complete your undergraduate studies, preferably in finance, economics, or accounting. But remember that you have the choice to decline. A lot of candidates have chosen to go after CMA certification first, and only then would they consider going after a degree.
#2. Sign up for the IMA:
One must sign up with the Institute of Management Accountants in order to become a certified management accountant (CMA) (IMA). Academic, student, and professional memberships are the three categories that are offered. A student subscription is the most sensible option for new users.
#3. Sign up for a CMA review course
Even though the IMA offers one course for your fee, many students choose to participate in extra courses to further their preparation. Choose the CMA review course that best meets your needs.
#4. Enroll in and pay for the CMA test
The CMA test is only offered during the three windows of January/February, May/June, and September/October each year. Visit the official website of the IMA to register.
#5. Consider sitting for the CMA exam
There are two components to the CMA exam. Every episode lasts four hours. It’s permissible to take it during the current timeframe or immediately after another.
#6. Establish your professional experience
You must provide documentation of two years of experience in order to acquire the certificate. Candidates have seven years from the exam date to meet this requirement.
#7. Apply here for your desired CMA designation
You can submit an application for your CMA certificate once you’ve finished all the prerequisites. To do this, go to the IMA website and log in to your account. You’ll find all the information you require.
Once that happens, you will have successfully completed the CMA certification procedure! The amount of accounting and management knowledge required to earn the CMA certification makes it a considerable task. Depending on both external limitations (certification) and personal traits, different qualifications are needed to become a CMA (an analytical brain).
master’s degree
- A two-year employment history
- Allocate 4-6 months for CMA test preparation.
- Tendency to spend money
- Effective communication abilities
- excellent cooperation amongst several teams
- Ability to analyze
- Possessing knowledge of company strategy
- Detail-oriented
- Integrity and sincerity
Certified Management Accountant Exam
The process of becoming a Certified Management Accountant is time- and effort-consuming. A four-year bachelor’s degree, often in accounting, business, or finance, is required of applicants. Additionally, they must have two years of continuous professional employment. Candidates do not have to do this material before the test, though.
The two-part test, which candidates for the CMA must pass, can be taken in any order. The first half concentrates on financial planning, performance, and control; the second part examines financial decision-making. This is how each segment is broken down:
- Financial planning, performance, and analytics, decisions involving external financial reporting, budgeting and forecasting, performance management, cost management, internal controls, and technology and analytics are all tested in Part 1 of the CMA exam.
- Corporate finance, financial statement analysis, decision analysis, risk management, investment decisions, and professional ethics are among the subjects covered in Part 2 of the CMA.
Technology, analytics, business ethics, and decision analysis are now given more weight in the CMA exam. Exam subjects no longer include internal audits, money that is not recorded on the balance sheet, bankruptcy, or the tax ramifications of transfer pricing. Overall, twelve competencies are almost evenly covered by the two new examinations. A normal pass rate for the exam, which has four hours given for each section, is around 50%. Anyone making a subsequent effort or one after that is included in that.
Is CMA as good as CPA?
As far as differences go, it’s very obvious that the main distinction between a CMA and a CPA is the expertise they each hold. While CPAs are primarily focused on taxation, audits, and day-to-day accounting tasks, CMAs are more strategically minded and forward-thinking company partners.
Is CMA higher than CPA?
Additionally, factors including your age, education, experience, and sector can have an impact on your CMA pay. A late-career CMA typically makes more money than a CPA. When planning your financial or accounting career, you should also take work/life balance and job satisfaction into account.
How difficult is CMA exam?
The CMA exam is incredibly challenging and will push you to the edge of your knowledge. Less than half of exam takers will pass, as the industry average CMA pass rate for both portions is approximately 45%. The CMA test is well known for being rigorous and challenging, therefore you should study if you want to pass.
What is the difference between CPA and CMA certification?
An individual who obtains a CPA license normally starts their career as a public accountant (primarily in tax and auditing), whereas an individual who obtains a CMA certification frequently works as a management accountant but may also work in a variety of other professions.
Which is better CIMA or CMA?
CMA is considerably well known. CIMA is far more well-known in the UK and other Commonwealth nations; it is less well-known in Canada and Australia. CPA Canada is the finest; CMA is marginally superior to CIMA in Canada.
Is CMA higher than CA?
The advanced CMA course emphasizes applying the information in the business world and is more hands-on. The average time it takes to complete a CA course is five years. A CMA course, on the other hand, lasts just 6 to 9 months.
Conclusion
A Certified Management Accountant (CMA) is a finance professional with extensive company understanding. Their area of expertise is determining how to use financial and accounting data and information to steer corporate strategy.
Certified Management Accountant FAQs
Which country offers the highest opportunities to US CMA?
UAE has the most potential for US CMAs because there are so many foreign firms there that need financial managers to steer them in the proper way.
What Does a CMA Do?
A qualified management accountant can serve in a variety of capacities within an organization. A CMA can carry out the routine tasks of a cost accountant while also providing strategic advice based on the data they’ve crunched.
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