How to become a Certified Management Accountant (CMA)?

Who is a CMA?

A Certified Management Accountant (CMA) is a professional designation in management accounting and financial management. CMAs are typically involved in strategic financial management and decision-making within organizations. They are well-versed in various aspects of accounting, financial planning, analysis, control, decision support, and professional ethics. To become a CMA, individuals usually need to meet certain educational and experience requirements, pass a rigorous examination administered by the Institute of Management Accountants (IMA), and adhere to a code of ethics.

Key Takeaways:

• CMAs are recognized globally for their proficiency in financial management and strategic decision-making.
• To become a Certified Management Accountant a person needs to clear all the exams conducted by the Institute of Management Accountants (IMA) and meet the eligibility requirements.
• The CMA designation is a professional certification awarded by the IMA.

Steps to Become a CMA

The steps to become a Certified Management Accountant(CMA) are as follows:

1. Check Eligibility: The Institute of Management Accountants has set the eligibility criteria for Certified Management Accounting which is,

• A Bachelor’s degree from a recognized institution.
• Two years of relevant experience in management accounting or financial management.

2. Take Membership: A person is required to join the Institute of Management Accountants as a member and then enroll as a CMA candidate with the institute. Membership in IMA can be taken by visiting the official IMA website of the institute and filling in the registration form which depends on the career status that includes student membership, professional membership, etc. The candidate has to pay the requisite fee for the membership.

• Professional Membership Fee: $295.00
• Academic Membership Fee: $160.00
• One-year Student Membership Fee: $49.00
• Two-year Student Membership Fee: $98.00

3. Examination Process: After getting membership from the Institute, the candidate has to enroll for the examinations by paying the required fees. The CMA exam is divided into two parts- “Financial Planning, Performance and Analytics” and “Strategic Financial Management”. Since the CMA course has two parts, the candidate has to pay the fees twice. If the person fails in the first attempt of the examination, he is required to pay some additional fees for further sitting in the examination.

4. Fee Structure

Members	Who are They?	Entrance Fees	Exam Fees
Professional Members	Professional members are those who have already chosen their career as an accountant or financial manager in business.	$300	$495 per part
Student Members	Student members are those members who want to explore their career options and learn about the role of financial manager and accountant.	$225	$370 per part

5. Gain Experience: After passing the exam, the candidate has to fulfil the work experience requirement. It involves two years of professional experience in management accounting or financial management. The work experience can be obtained before, during, or after taking the exam.

6. Certification: Once the candidate meets the exam and experience requirements, they may apply for CMA certification through the institute. They needs to submit various documents for the verification of their education and work experience. After the documents have been verified, the institute shall issue CMA certification.

7. Continuing Professional Education: It is an ongoing education and training that CMA professionals must undertake to maintain their certification and stay updated with developments in their industry. The purpose is to ensure that professionals remain knowledgeable and competent with changes in regulations, standards, technology, and best practices. For a CMA professional, thirty hours of CMA CPE credits are required in each calendar year which must be within approved topics. However, if a person exceeds the requirement, he can carry ten hours over into the next calendar year.

8. Code of Ethics: IMA has introduced the code of ethics which outlines the ethical principles and standards of conduct expected of CMAs. Candidates must strictly follow the code of ethics. It includes maintaining confidentiality, integrity, competence, and professionalism in their work

Skills of a CMA

1. Analytical Skills: Certified Management Accountants must have strong analytical skills to interpret financial data, identify trends, and make recommendations and informed decisions based on their analysis.

2. Risk Management: A CMA should have skills to identify and manage financial risks related to the business. This involves assessing potential risks to the organization’s financial health and implementing strategies to alleviate them.

3. Strategic Planning: CMAs play a key role in strategic planning and decision-making. Their task includes analyzing financial data to support long-term business goals and providing insights to the management. This will help the person to think strategically and analyze the risks and opportunities associated with the business.

4. Financial Reporting: One of the crucial skills required in a CMA is an understanding of financial reporting standards. He must be able to interpret and prepare financial statements is crucial for CMAs. This also includes having knowledge of Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

5. Communication Skills: Strong communication skills are important for CMAs. They are required to convey financial information to various stakeholders, including executives and board members who may not have a financial background. To make them understand the financial data, CMAs should have effective communication skills.

Job Profiles for CMAs

Job Role	Description	Average Salary
Management Accountant	A management accountant is responsible for analyzing past data and predicting the future needs of the organization. They provide financial information and analysis to support internal decision-making. Moreover, they focus on cost analysis, budgeting, and strategic planning to help management optimize resources, reduce costs, and increase profitability.	$62,601
Cost Accountant	A cost accountant is a professional responsible for analyzing and controlling the costs associated with producing goods or providing services. They develop cost standards and implement cost accounting systems for the organization. Their responsibility also includes tracking and allocating costs to products or services, analyzing cost variances, and providing insights to management to help optimize cost and improve profitability.	$77,730
Financial Analyst	A financial analyst is a professional who is required to estimate the financial data of companies and anticipate investment opportunities to provide insights and recommendations to stakeholders. They analyze financial statements and use financial modeling techniques to support decision-making.	$86,009
Financial Risk Manager	A financial risk manager is a professional who identifies, assesses, and manages financial risks within an organization. Their responsibilities include analyzing market risks, operational risks, and regulatory risks to implement risk management strategies and policies that improve the organization’s financial interests.	$138,096
Chief Financial Officer	The Chief Financial Officer is the highest-ranking financial executive within an organization who is responsible for managing the company’s financial operations. The CFO oversees financial reporting, budgeting, risk management, and investor relations, and provides strategic guidance to senior management.	$439,956

Salary of CMAs

• As per the survey held by the Institute of Management Accountants (IMA) in 2023, the average salary of a Certified Management Accountant in the USA is $124,000 per year.
• People with a CMA certification earned 24% more in their median salaries than those who don’t have certification.
• However, the range of salary depends on various factors such as required skills, job location, experience of the person, job title, company size, etc.

Tips and Strategy to Clear CMA Exam

1. Understand the Exam Structure: Candidates should familiarize themselves with the CMA exam structure, contents, and format. The exam consists of two parts, each with objective and subjective questions. Understanding the exam and weightage of each topic will help the candidate to allocate the study time effectively.

2. Making a schedule: Allocating the time according to the study plan will help the candidate to be consistent and efficient. It involves breaking down the syllabus into manageable sections and setting aside dedicated time each day for studying.

3. Focus on Weak Areas: Identifying the weak areas through practice exams or self-assessment quizzes and giving extra time to review will help them strengthen those areas. Candidates must prioritize their efforts based on areas where they need the most improvement.

4. Practice Questions: Practice solving a wide range of multiple-choice questions and essay questions to understand the key concepts and improve problem-solving skills. It also helps in understanding the underlying principles behind each question.

Certified Management Accountant (CMA) – FAQs

What is IMA?

IMA stands for the Institute of Management Accountants. It provides provides a wide range of resources, support, and networking opportunities for management accountants around the world.

What is the Continuing Professional Education (CPE) requirement?

Once a candidate have completed both parts of the CMA exam, he will be required to report 30 hours of CPE on an annual basis and a minimum of two hours must be in the field of ethics.

Is the CMA designation recognized internationally?

Yes, the CMA designation is recognized globally. CMAs work in roles such as financial analysis, management accounting, corporate finance, and strategic planning in organizations of all sizes.

What are the benefits of becoming a CMA?

Becoming a CMA can enhance the career chances in management accounting, finance, and related fields. It demonstrates expertise in financial management and can lead to higher earning potential and increased job opportunities.