How to Become a CMA (Certified Management Accountant) May 10, 2017
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Agenda The CMA Designation Institute of Management Accountants (IMA) Why get a CMA? CMA Requirements CMA Exam What, When, Where, How Much? How to Pass the Exam Using Wiley CMAexcel
The CMA Designation
The Management Accounting Profession Over 75% of accounting and finance professionals in the U.S. work inside organizations doing one or both of two types of professional work. 1) Building high-quality corporate reporting practices for the organization s compliance with outside regulators (Corporate Reporting). 2) Building quality financial practices into the organization through decision support, planning and control over the organization s value-creating operations (Financial Planning and Analysis FP&A). Source: US Bureau of Labor Statistics
Management Accounting in Big Organizations à Corporate Finance
What Does Management Accounting Look Like?
Institute of Management Accountants (IMA)
What is Institute of Management Accountants (IMA)? The leading association dedicated to developing, certifying, connecting, and supporting the world s best accountants and financial professionals in business A network of more than 80,000 members worldwide with 300+ local chapters Global office in US; regional offices in China, Singapore, Europe and the Middle East Provides best-in-class certification for critical internal financial management responsibilities, including planning, budgeting, business reporting, decision analysis, and risk management
What Does IMA Provide?
Why Get a CMA?
Professional Certifications It s Alphabet Soup Out There!
The CMA is for. Professionals who want to differentiate themselves Professionals who need more accounting and finance skills Professionals who want to accelerate their careers Employers who see a skills gap in their employees Employers who embrace continuous education Employers who need assurance with hiring
The Difference is in the Numbers For more details go to: http://sfmagazine.com/post- entry/march- 2017- imas- 2016- global- salary- survey/
CMA Requirements
Requirements to be a CMA Foundational knowledge of economics, basic statistics, and financial accounting Pass both CMA exam parts Bachelors degree from an accredited college or university o o o Any major, no course distribution requirements Most CMA candidates hold a degree in accounting or finance May be earned within 7 years of passing CMA exam parts Two years of professional work experience o May be fulfilled within 7 years of passing CMA exam parts Active membership in IMA Requirements to maintain CMA certification o o o 30 hours of CPE annually CPE must include 2 hours of ethics training Maintain active IMA membership
Take the CMA as a Student? Absolutely! Students can sit for the CMA exam before they graduate CMA exam is academic in nature, and academics are still fresh in the mind Integrate across your classes! Reduced IMA membership and CMA exam-related fees for students If are looking for an advanced certification to build your skills, resume, and earning potential the CMA is the right choice!
Take the CMA as a Professional? You Bet! An opportunity for professionals to remember and update their knowledge from college Expand outside of your professional specialty focus, and build tools and vocabulary Many employers will pay for, or partner on, the cost to prepare for and take the exam If are looking for an advanced certification to build your skills, resume, and earning potential the CMA is the right choice!
CMA Exam What, When, Where, How Much?
CMA Exam à What? Each part 4 hours 100 multiple choice questions (3 hours) Two 30 minute essay questions (1 hour) CMA Exam Contents Specification Outline https://www.imanet.org/-/ media/f2e090eb04954cfe8f0fbb1654281262.ashx
CMA Exam à What? Part 1: Financial Planning, Performance and Control External Financial Reporting Decisions (15%) Analysis of a wide variety of a company s financial statements to assess performance. Planning, Budgeting, and Forecasting (30%) Preparing the financial plan (control, authorization, resource commitment, and needs) for a specific period of time or project. Performance measurement (20%) A focus on comparing actual results to planned results and recommending interventions when necessary. Cost management (20%) Addressing the reporting, analysis, and management of costs incurred by an organization. Internal controls (15%) An in-depth look at implementing procedures and processes needed to ensure data security, protect an organization s assets, and meet legal and reporting requirements.
CMA Exam à What? Part 2: Financial Decision Making Financial Statement Analysis (25%) Leveraging financial accounting skills needed to analyze financial statements for internal and external stakeholders. Corporate Finance (20%) Managing a company s short-term and long-term financing needs. Decision Analysis (20%) Emphasis on making decisions based on analytical techniques and innovative methodologies. Risk Management (10%) Identifying, assessing, and minimizing risks within an organization. Investment Decisions (15%) Analyzing capital investment decisions using quantitative and qualitative techniques. Professional Ethics (10%) Understanding, complying with, managing, and leading in accordance with a professional code of conduct.
CMA Exam à When? Two Months ON, Two Months OFF January February March April May June July August September October November December Once you enroll in the CMA Exam Program: You must schedule a part of the exam within 12 months You must complete both parts within 3 years You must fulfill your education within 7 years
CMA Exam à Where? Tested in Prometric testing centers Over 8,000 testing centers in 160 countries Go to link http://www.prometric.com/icma/default.htm for locations and instructions on registering
CMA Exam à How Much? Expected Fees Professional Student IMA Membership Fee $155 (<33 years) $245 ( 33 years) $39 CMA Entrance Fee (non- refundable) $250 $188 Exam Fee (per part) $415 $311
Passing with Wiley CMAexcel
CMA Exam Pass Rates Selecting and Completing a Smart Training Program is Key!
Your CMA à Best Practice for Success Take the exam as soon as possible! Do your research Application process Examination Licensure Commit to studying by scheduling your exam Review course materials Time management Confidence Invest in you!
Your CMA à What s Next? 1. Contact the IMA to become a member and a CMA candidate https://www.imanet.org/cma-certification/getting-started 2. Contact Wiley to order your study materials https://www.efficientlearning.com/cma/
Q&A
Appendix Work Experience Requirement From IMA s CMA Candidate Handbook: Candidates for the CMA Certification must complete two continuous years of professional experience in management accounting and/or financial management. This requirement may be completed prior to or within seven years of passing the examination. Academics can meet this requirement if at least 60% of their course load is in accounting and corporate financial management courses above the principles level. Professional experience is expected to be gained in full-time employment. However, continuous part-time positions of 20 hours per week meeting the definition of qualified experience will count toward this requirement at a rate of one year of experience for every two years of part-time employment.
Appendix Work Experience Requirement (continued) From IMA s CMA Candidate Handbook: Qualifying experience consists of positions requiring judgments regularly made employing the principles of management accounting and financial management. Such employment includes: Preparation of financial statements Financial planning & analysis Monthly, quarterly, and year end close Auditing (external or internal) Budget preparation & reporting Manage general ledger and balance sheets Forecasting Company investment decision making Costing analysis Risk evaluation
Appendix Work Experience Requirement (continued) From IMA s CMA Candidate Handbook: Employment requiring the occasional application of management accounting principles such as in computer operations, sales and marketing, manufacturing, engineering, personnel, and general management will not satisfy this requirement. Internships and trainee, clerical, or non-technical positions do not provide appropriate experience to fulfill this requirement.