Certified Management Accountant (CMA) Definition
A Little More on What is a Certified Management Accountant – CMA
Certified Management Accountant (CMA) is a recognition granted to accountants who have positioned themselves in areas of financial accounting and strategic management. This validation is usually premised on proficiency in financial and managerial accounting that assist in key business decisions based on available financial data.
Certification needs passing two exam sections covering Financial reporting decisions, Budgeting, Planning, predicting of performance management, Cost management, Internal controls, analysis of financial statements, Corporate Finance, Decision analysis. Management of risk, making investment decisions and professional ethics.
Certification requires the following:
- Bachelor’s degree or professional accounting certification
- 2 years of work experience
- Successful completion of parts 1 and 2 of the exam
- 12-18 months to complete both parts, on average
- Up to 3 years allowed to complete both parts
- 150-170 recommended hours of study per part
- $1,696 or more in returned lifetime earnings for every hour of study time**
CMA has many career options and positions such as vice president of finance, controller, and a general manager. A CMA may specialize in a variety of functions such an accountant, a cost accountant, a tax consultant, a financial analyst or a budget analyst.
The IMA® (Institute of Management Accountants) is responsible for certifying organization. It is a global association of financial professionals and accountants in business. Founded in 1919, it is one of the most reputable associations majoring on advancing the profession of management accounting. It’s mission is to:
- Provide best-in-class certification—the CMA—assists in internal financial management responsibilities such as planning, budgeting, business reporting, decision analysis etc.
- Support members’ career development through an active professional community, continuing education, valuable information, and resources
- Support members and their organizations in driving the performance of the business by enhancing the highest ethical standards for internal financial management.
To achieve successful careers and organizations we must rise above changing business landscapes. At IMA, we are proud to be part of the journey.
References for Certified Managerial Accountant
Academic Research on Certified Managerial Accountant (CMA)
- Certified management accountants: Perceptions of the need for communication skills in accounting, Hiemstra, K. M., Schmidt, J. J., & Madison, R. L. (1990). The Bulletin of the Association for Business Communication, 53(4), 5-9. This article talks about the perception of the needs for communication skills in accounting.
- Accountants‘ perceptions regarding fraud detection and prevention methods, Bierstaker, J. L., Brody, R. G., & Pacini, C. (2006). Managerial Auditing Journal, 21(5), 520-535. This paper talks about perceptions regarding ways of detecting fraud and prevention. This is achieved using firewalls, virus and password protection and internal control review. What may prevent the use of these effective methods may be lack of enough resources.
- The perceived benefits of certified internal auditor designation, Myers, P. M., & Gramling, A. A. (1997). Managerial Auditing Journal, 12(2), 70-79. This study was done to find out the benefits of Certified Internal Auditor (CIA) in career development. It concludes that the CIA shows the level of significant competence to provide career advancement in internal audit positions.
- Succeeding in managerial accounting. Part 1: knowledge, ability, and rank, Stone, D. N., Hunton, J. E., & Wier, B. (2000). Accounting, Organizations and Society, 25(7), 697-715. The paper explores different rankings in managerial knowledge and ability. The author gives a highlight of the process of acquiring knowledge and matching that knowledge in managerial accounting.
- Succeeding in managerial accounting. Part 2: a structural equations analysis, Hunton, J. E., Wier, B., & Stone, D. N. (2000). Accounting, Organizations and Society, 25(8), 751-762. This article investigates whether the ranks in managerial accounting depends on the type of knowledge and levels of experience and ability needed. The results show that the mentioned factors have an influence on managerial success.
- In search of practice-based topics for management accounting education, Ahadiat, N. (2008). Management Accounting Quarterly, 9(4), 42. The author here is concerned with providing education on management accounting using practical topics.
- The coming changes in management accounting education, Siegel, G., & Kulesza, C. S. (1996). Strategic Finance, 77(7), 43. This paper is concerned with the changes that arise in the education of management accounting.
- Professionalism, organizational-professional conflict, and work outcomes: A study of certified management accountants, Shafer, W. E., Park, L. J., & Liao, W. M. (2002). Accounting, Auditing & Accountability Journal, 15(1), 46-68. It investigates the link between professionalism, organizational-professional conflict, organizational commitment, job satisfaction and turnover intentions by use of structural equation model. It shows that individuals who perceive higher levels of organizational-professional conflict are less committed to the firm.
- Increasing the Relevance of Undergraduate Accounting Education, Danvers, K. (2006). Strategic Finance, 87(11), 21. The author here is concerned with increasing the relevance of undergraduate Accounting Equation.
- Professional dominance: The relationship between financial accounting and managerial accounting, 1926–1986, Richardson, A. J. (2002). Accounting Historians Journal, 29(2), 91-121. The paper investigates the link between financial accounting and managerial accounting. The research was conducted between the year 1926 and 1986 and published in Cost and Management and also the Canadian trade magazine. They claim that during this period financial accounting was more dominant than managerial accounting. Manufacturers preferred Financial accounting to managerial accounting. The intersection of financial and managerial accounting still remains a disputed territory until to date.
- Changes in accounting education: Improving principles content for better understanding, Boyd, D. T., Boyd, S. C., & Boyd, W. L. (2000). Journal of Education for Business, 76(1), 36-42. Since the replacement of APB with FASB in 1972, more than 130 new pronouncements have impacted on the way we teach and practice accounting. Women have currently dominated the field of accounting in the workplace. There has been a call insisting of a better-learned accounting graduate and information in areas of accounting like ethics, history international applications and computer use.