The Certified Management Accountant (CMA) credential is a globally recognized certification for professionals in management accounting and corporate finance. It signifies a mastery of financial planning, analysis, control, and decision support, distinguishing the holder as an expert in the field. Pursuing this certification can lead to enhanced career opportunities and professional credibility.
What is a Certified Management Accountant?
A Certified Management Accountant focuses on the financial and operational health of a company from the inside. Their work involves preparing and analyzing internal financial reports, which senior leadership uses to make strategic business decisions. This internal focus distinguishes them from roles like public accountants, who primarily deal with external audits and compliance for outside stakeholders. CMAs are integral to functions like budgeting, forecasting, and cost management.
Their expertise in financial planning and analysis helps organizations navigate economic changes and plan for future growth. CMAs work in a wide variety of industries, including manufacturing, technology, healthcare, and non-profit organizations. Large corporations, in particular, value CMAs for their ability to link accounting information to strategic management, helping to drive performance and profitability.
CMA Certification Requirements
Obtaining the CMA certification hinges on fulfilling three distinct prerequisites established by the Institute of Management Accountants (IMA). These requirements ensure that candidates possess the necessary academic foundation, practical experience, and exam-based knowledge to uphold the standards of the profession.
Educational Prerequisite
A primary requirement for the CMA designation is holding a bachelor’s degree from an accredited college or university. While degrees in accounting, finance, or business are common, the IMA accepts a degree in any field, allowing individuals from diverse academic backgrounds to pursue the certification. Candidates can sit for the CMA exam before completing their degree, but they must submit proof of graduation within seven years of passing the exam to become certified.
Professional Experience Prerequisite
Candidates must also complete two continuous years of professional experience in management accounting or financial management. Qualifying roles involve tasks such as financial analysis, budget preparation, cost management, and supporting investment decisions. This experience can be gained before taking the exam or completed within seven years after passing both parts.
CMA Exam Prerequisite
The final prerequisite is successfully passing both parts of the CMA exam. This two-part examination is designed to test a candidate’s mastery of the body of knowledge required for the profession.
Steps to Earn the CMA Designation
Earning the CMA designation involves several administrative steps. The first is to become a member of the Institute of Management Accountants (IMA), the professional organization that administers the CMA certification. Membership is a mandatory prerequisite for entering the CMA program.
After joining the IMA, the next step is to pay the CMA program entrance fee. This one-time fee enrolls you as a CMA candidate. Once enrolled, you must register for either Part 1 or Part 2 of the CMA exam. Candidates have the flexibility to take the parts in any order.
The entire CMA program, which includes passing both exam parts, must be completed within three years of paying the entrance fee. After successfully passing both exams and meeting the educational and experience prerequisites, the final step is to submit official verification of these achievements to the Institute of Certified Management Accountants (ICMA) for final approval.
Preparing for the CMA Exam
Passing the two-part CMA exam requires preparation, as it is structured to cover the full scope of management accounting. Part 1, “Financial Planning, Performance, and Analytics,” covers external financial reporting, planning, budgeting, forecasting, performance and cost management, and internal controls. Part 2, “Strategic Financial Management,” focuses on financial statement analysis, corporate finance, decision analysis, risk management, and investment decisions.
Each part of the exam is four hours long and consists of 100 multiple-choice questions and two 30-minute essay scenarios. Candidates have three hours for the multiple-choice section, with the remaining hour dedicated to the essays. Many candidates find success by enrolling in specialized CMA review courses that provide structured study materials, practice questions, and mock exams.
Creating a detailed study schedule is a common strategy for covering all the required topics systematically. Some candidates form study groups to collaborate with peers, discuss complex concepts, and maintain motivation throughout the preparation period. Consistent study and practice are necessary to build the confidence and knowledge required to pass both parts of the exam.
Maintaining Your CMA Certification
To keep the certification active, CMAs must adhere to ongoing requirements set by the IMA. This ensures they remain current with industry developments and uphold the profession’s ethical standards.
Certified Management Accountants are required to complete 30 hours of Continuing Professional Education (CPE) each year. These hours can be earned through various activities, such as attending webinars, workshops, or completing online courses. A specific component of this requirement is that at least two of the 30 CPE hours must be dedicated to the subject of ethics. In addition to the CPE requirements, CMAs must maintain an active IMA membership to keep their certification in good standing.