The CMA certificate is a globally recognized accreditation in strategic management and financial accounting. In fact, it’s considered the “gold standard” as the top certificate of management accountant professionals. I want to go over the benefits of getting your CMA certification and how to get this designation. Once you become a CMA, you could be a top candidate for the best financial accounting and management positions in the business world.
CMAs, or certified management accountants, are professionals with high levels of specific knowledge in financial accounting and strategic management. With this globally recognized credential, CMA accounting professionals have unique skills that make them vital in today’s business world. They must have strong understandings of complicated, interconnected business and management strategies.
CMAs can bridge a company’s financial and management teams. CMAs understand the most basic-level accounting concepts. Yet, they also have enough skills in finance and strategy to lead teams in an organization. Plus, a certified managerial accountant understands how to apply practical financial solutions to improve business performance. In today’s uncertain job market, this skill alone makes the CMA a valuable credential.
The Institute of Management Accountants puts it best: CMAs are highly valued because they “can explain the ‘why’ behind numbers, not just the ‘what.’ And that can give you greater credibility, higher earning potential, and ultimately a seat at the leadership table.”
Plus, because of the high level of knowledge needed to get the CMA, the IMA only grants about 4,000 new CMA credentials per year, on average. That means that you’ll be part of an exclusive group.
Since CMAs specialize in managerial accounting, CMAs help their companies manage large projects and plan for future financial endeavors. CMAs often lead teams of decision-makers and are tasked with making high-level business decisions. They understand potential financial investments. CMAs can also manage risk through informed analyzes of financial data and reports.
Since these types of skills will always be needed in business and industry, CMAs are in high demand. For example, CMAs often work as financial managers. And according to the U.S. Bureau of Labor Statistics, financial managers will see a 16% increase in demand from now until 2028.
In order to become IMA certified and land your first CMA job, you’ll need to pass several requirements established by the IMA. Basically, these requirements follow the 3 E’s:
Here’s the steps that you’ll take in order.
(But this list is a short summary. Check out this sister article How to Become a CMA: The CMA Certification Process for a full-length discussion.)
Make sure that you are ready for this journey! The path to becoming a CMA is not easy, so first make sure that the commitment (time, energy, and money) is worth it for where you want to go in your career.
Basically, you need to verify that you hold a bachelor’s degree or equivalent from an accredited college or university. (I have more information here.) Your degree doesn’t even have to be in accounting or a related field. However, it will certainly make passing the CMA Exam easier!
Go to the IMA membership website, fill out the application, and pay the IMA membership fee. I’ve listed the fees below. Additionally, you must hold an annual membership to the IMA to keep your CMA license active.
When you’re ready to sit for the CMA exam, you’ll enroll in the IMA’s CMA Certification Program.
Next, register for the 2-part CMA Exam and schedule your test dates.
And finally, study, study, study and pass the CMA Exam. I highly recommend using a review course. Only about 45% of CMA candidates pass the exam. Therefore, it is important to study with a trusted review course—I promise that it will make your CMA journey a lot smoother. I have discounts for the top courses on the market.
However, your CMA journey doesn’t end after you pass the exam. Consequently, you’ll need to complete the CMA work experience requirements. You’ll need 2 continuous years working in management accounting or financial management. Or, you can work part-time for 4 years.
To keep your CMA credential active, you’ll need to meet the annual continuing education (CE) requirements. The IMA requires CE for all CMAs.
Before you can call yourself a CMA, you must pass the Certified Management Accountant Exam. However, most CMA candidates think that passing the CMA Exam is the hardest obstacle to becoming a CMA. Right now, the average CMA Exam pass rate is only about 45%. Therefore, it’s important to study with a CMA Exam Review Course so that you can pass the exam on the first time.
Let’s go over some of the details of the CMA Exam. Essentially, the CMA Exam has two parts. But you don’t have to take them in order. That is, you can take Part II before Part I if you want. However, you can only take each part during certain times of the year. Check out my full-length article, CMA Exam Format: Important Info on Question Type + Duration for the schedule.
Here’s the breakdown of content on the CMA Exam to get your CMA certificate.
Each exam part is 4 hours long, for a total of 8 hours for the whole exam. Furthermore, each exam part has 100 multiple-choice questions (75% of your score) and 2 essays (25% of your score). You answer the multiple-choice questions first. Then, if you get at least 50% of them correct, you can advance to the essays.
If you are committed to getting your CMA, then the IMA management accounting institute recommends to give yourself at least 12-18 months to pass both parts of the CMA Exam. Nevertheless, you have up to 3 years to pass them both. IMA also recommends that you study for at least 150-170 hours per exam part.
Here’s a short list of the benefits you can receive after you have your CMA certificate.
As you can see from this list, once you receive your CMA certificate, you can expect lots of benefits. After all, you’ll have more chances for career advances. Plus, you are likely to earn a higher salary.
Additionally, most CMAs report increased job satisfaction after they receive their credential because they usually have more decision-making input in their organization. In fact, according to the 2020 IMA Global Salary Survey, about 70% of CMAs think the CMA title gave them more career opportunities.
Besides, the CMA certification is recognized around the globe. Therefore, it might lead to careers in foreign countries or with large international companies.
If your career goal is to reach certain upper-level positions in the Big 4 firms, you may need a CMA. The CMA certificate means that you have the business and financial skills to help lead major organizations.
Websites like payscale.com and the IMA collect data from CMAs across the globe and tracks their salaries. You can find more information on the IMA website, but here are the highlights.
Across the globe, CMAs can expect to make an average salary of $59,750. The average salary for CMAs in the US is much higher at $88,703 according to payscale.com. However, according to the 2020 IMA Global Salary Survey, the US average CMA salary is closer to $100,000. The IMA also points out that CMAs make an incredible 63% more than their non-credentialed peers.
Even for young accountants, the CMA certificate might be worth pursuing. According to the 2020 IMA Global Salary Survey, young CMAs (ages 20-29) make 33-34% more than their non-CMA peers.
In addition, younger accountants in senior management positions earned 100%-107% more than their un-certified peers.
But remember, once you reach a position with a high salary, you also might have more job-related stress. So before you start studying for your CMA certification exam, it’s important to consider your potential work-life balance.
If you’re going to take the CMA exam, it’s really important that you study with a CMA exam review course. The exam’s pass rate is low—about 45%. And since the exam comes with substantial fees, you don’t want to have pay them twice. Therefore, I have a full review of the best 2020 CMA Exam review courses in this article.
Professionals with the CMA certificate often work with accounting, finance, and strategy teams in an organization or business. Moreover, CMAs are valued in all sizes of businesses, from small family-run businesses to large publicly listed and multi-national corporations. CMAs can even work for non-profits and governmental and academic institutions.
Day-to-day activities for CMAs often include general accounting, financial decisions, corporate management, and budgeting and planning. Furthermore, CMAs are often major decision-makers in their organization and may hold high-level executive positions. They also understand how to look at data and analyze it. And then, they can use that data to increase performance.
CMAs are often asked to find new opportunities for investment management. For example, they might prepare corporate financial statements and supervise other accountants who formulate financial reports. Since CMAs understand a range of business concepts, they are often asked to present financial information to high-level executives. Plus, they break down complicated financial concepts into easier-to-understand concepts to help executives plan business decisions.
According to the IMA, over half of CMAs work in the sectors of finance, manufacturing, or business services. Other industries need certified management accounting professionals, too. For example, CMAs work in construction, education, insurance, medical and health-related services, real estate, and transportation. CMAs often hold leadership positions. Plus, they can analyze financial statements to improve their company’s overall operations.
CMAs often hold the following titles:
If you are wondering if you should pursue both the CMA and CPA, you’re not alone. After all, many of my readers contact me to ask about this particular combination. So, let’s go over some of the pros and cons.
The IMA, or Institute of Certified Management Accountants, is a global membership organization that advances the management accounting profession. Specifically, the IMA grants the CMA designation.
You can receive your CMA certificate after meeting certain benchmarks established by the IMA. First, you must hold a bachelor’s degree, join the IMA, and apply to the CMA certificate program. Next, you must pass the CMA Exam. And finally, you’ll need at least 2 years of qualified work experience. Once you meet those requirements, you will receive your CMA certification.
If you are familiar with the process to get your CPA license, then you might be wondering if there is a comparable CMA “license.” The quick answer is no. The CPA designation is a state license. Therefore, candidates apply to their state’s Board of Accountancy to obtain that license. The CMA, on the other hand, is a certification. The CMA is not a license like the CPA.
Some of my readers ask me if there are different qualifications to get your CMA certification in the United States versus in other countries. The CMA is a globally recognized designation. Therefore, all candidates must meet the same qualifications as outlined by the IMA.
No colleges or universities currently offer a specific CMA program at the undergraduate or graduate level. Rather, students who are interested in the CMA credential should pursue degrees in accounting or a related degree.
Do you still have questions about the CMA certification or the CMA Exam? Or do you just want to know more about your path to becoming a CMA? Sign up for my completely free mini-course today!