Certified Management Accountant (CMA)

What Is a license Management Accountant ( CMA ) ?

Certified management accountant ( CMA ) is an account appointment that signifies expertise in fiscal report and strategic management. The professionals who obtain this appointment are colloquially known as CMAs and are qualified for a variety of roles ranging from fiscal restrainer to head fiscal officer ( CFO ) .

Key Takeaways

  • The certified management accountant (CMA) designation indicates expertise in financial accounting and decision-making.
  • This certification prepares professionals for a wide variety of careers.
  • CMAs are required to adhere to a strict set of professional standards, in addition to passing a rigorous two-part exam.

How certify management Accountants ( CMAs ) work

The certify management accountant ( CMA ) certificate, which is issued by the Institute of Management Accountants ( IMA ), builds on fiscal account proficiency by adding management skills that aid in making strategic clientele decisions based on fiscal data .

frequently, the reports and analyses prepared by certify management accountants ( CMAs ) will go above and beyond those required by by and large accepted accountancy principles ( GAAP ). For exemplar, in addition to a caller ’ second required GAAP fiscal statements, CMAs may prepare extra management reports that provide specific insights useful to corporate decision-makers, such as operation metrics on specific caller departments, products, or even employees .

Unlike the certified public accountant ( CPA ) documentation, CMA certificate is not compulsory for many jobs in finance. As with other fiscal designations such as certifiable public accountant ( CPA ) or chartered fiscal analyst ( CFA ) certifications, certified management accountants ( CMAs ) are submit to a hard-and-fast code of ethics. To obtain the CMA, candidates must have a bachelor ’ s degree or a relate professional documentation arsenic well as two years of continuous influence know in a relate field. Candidates must besides pass a rigorous examination, which typically requires over 300 hours of homework .

According to the Financial Industry Regulatory Authority ( FINRA ), CMAs must besides hold active membership in the Institute of Management Accountants.

Real-World Example of a Certified Management Accountant ( CMA )

Dorothy is an entrepreneur who manages a small construction supply caller. recently, she was invited to bid on a contract that would require her to importantly increase her number of employees. Although she felt that the stick out would be a capital opportunity for her business, she wondered whether she would have the fiscal report capacity to efficaciously manage that increased head count .

To help address this problem, Dorothy decides to hire Dennis, a certified management accountant ( CMA ). To obtain his appellation, Dennis had to pass a bipartite examination covering subject areas such as budget and prediction, operation management, cost measurement, and inner controls. In interviewing for the position, Dennis argues that these skills would allow him to support Dorothy in assessing the costs and benefits of this new project, while besides effectively managing the costs and logistics involved in servicing new customers .

With Dennis ’ second expertness, Dorothy is able to increase her team size without losing supervision of her internal costs and procedures. On the contrary, Dennis ’ second skill set provides newfound transparency to her business, allowing Dorothy to better assess the performance of individual team members and the profitableness of specific projects .

In the future, Dennis ’ sulfur combination of account skills and eloquence with managerial decision-making puts him in a good position to adopt executive positions within the ship’s company or at another employer.

limited Considerations

Certified management accountants ( CMAs ) and early accountants are expected to be in growing demand over the coming years. between 2019 and 2029, the lease of accountants is projected to grow by 4 %. Due to the absence of standardization, this growth is expected to continue in the management accounting sector because companies have considerable exemption in designing management account systems.

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