Do you love to work with numbers? Then you should explore the field of managerial accounting.  With a career in this field, you combine the worlds of accounting analysis and management insight. Some of the positions in managerial accounting are cost accountants, budget analysts, and financial analysts. If you want to go farther, these positions may also be a steppingstone to controller or vice president of finance!

What are some of the key responsibilities of these positions?

Cost accountants – Analyze costs related to business operations, including determining costs of products and services, evaluating cost drivers, and looking at cost efficiencies.

Budget analysts – Create budgets, financial forecasts/projections, and other forward looking reports for managers, as well as determining amounts and causes of cost variances.

Financial analysts – Gathering and organizing data, developing performance metrics, analyzing historical costs, and make recommendations based on their analysis.

The Institute of Management Accountants (IMA) is the premier organization for accounting and financial professionals in business. Their website is worth a visit—it has a wealth of information about managerial accounting. With student membership, you can investigate this field of accounting, learn the roles of the managerial accountant, and explore career options and networking opportunities. The IMA offers student memberships at a much lower cost than regular members--$49 versus the regular membership dues of $295 for one year!

If you are interested in this field, Purdue Global has an accounting degree program in this specialization and offers several courses to prepare you for the world of managerial accounting. In cost accounting, the initial course is AC239, Managerial Accounting (AC116 and MM255 are the prerequisites). A higher level course, AC420, Cost Accounting, builds on the concepts of AC239.  If you are undecided on whether entering managerial accounting is a good path for you, you may want to take AC330, Managerial Accounting for Business Professionals (AC114 and MM255 are the prerequisites).  You can read more about these courses in PG’s Course Catalog! Of course, as you pursue your degree, you will take all the required accounting courses to build a good foundation in accounting!

The IMA offers three certifications, the Certified Management Accountant (CMA), the Financial and Managerial Accounting Associate (FMAA), and Certified in Strategy and Competitive Analysis (CSCA). Cost accountants usually pursue the CMA. The CSCA certification is for those who “want to become key players in the strategy management process at their organizations” (IMA). The FMAA is an entry level certification.

Requirements for CMA certification – The exam for the CMA has two parts – Part 1: Financial Planning, Performance, and Analytics and Part 2: Strategic Financial Management. Each part has 100 multiple choice questions and two 30 minute essays. In addition, you must hold a hold a bachelor’s degree from an accredited college/university (this includes PG!) and complete two years of relevant experience in financial or managerial accounting. The CMA is a global certification, unlike the CPA certification which certifies you to practice in a particular state!

Requirements for FMAA certification – You will take a two-hour computer-based exam with 80 multiple choice questions. Topics include general accounting and financial management, financial statement preparation and analysis, planning and budgeting, cost management, and ethics. You must hold a bachelor's degree in accounting, finance, or economics.

Requirements for CSCA certification – Pass the CSCA exam (60 multiple choice questions and a case study), hold a bachelor’s degree from an accredited college/university (including PG!), and two consecutive years of professional business experience OR possess a qualifying accounting or finance certification.

More information on managerial accounting and these certifications can be found on the IMA website, at www.ima.net

In case you haven’t noticed, the forensic accounting field has many areas of specializations. There are many paths you can follow. Do you want to focus on accounting, valuation, or investigating? This month, we will explore several certifications that are available in this field.

INVESTIGATIVE:

CFE - You can obtain the Certified Fraud Examiner certification through the Association of Certified Fraud Examiners. Membership in the ACFE (including student memberships) includes the Fraud Examiner’s Manual. The exam questions are drawn exclusively from this manual, so you have all materials needed to study for the exam!

CAFS - The Certified Anti-Fraud Specialist certification is one of the certifications available from the Association of Certified Anti-Money Laundering Specialists. The CAFS certification consists of five modular certificate courses, combining theory with real-world application followed by an exam. This certification is especially suited for fraud prevention careers in banks and non-bank financial institutions.

Registered Forensic Investigator (RFI) - The American Board of Forensic Accounting (AFBA) offers this certification. Requirements include two years of applicable experience and a bachelor’s degree. The exam covers the same material as the Certified Forensic Accountant credential (see below), also offered by the ABFA.

ACCOUNTING:

AICPA – CFF – The Certified in Financial Forensics certification is offered by the American Institute of Certified Public Accountants.  You must first hold a Certified Public Accountant license. This shows that you have a solid foundation in accounting principles.

ABV – The Accredited in Business Valuations certification is also offered by the AICPA. You must also have a CPA license to pursue this certification. The AICPA website outlines the additional requirements for this certification, including appropriate experience and passing a two-part exam.

CRFAC – The American Board of Forensic Accounting (ABFA) offers the Certified Forensic Accountant certification. Prerequisites include a CPA license and two years of accounting or auditing experience in addition to taking the exam.

CFB – If you do not hold a CPA license, you may pursue the Certified Forensic Bookkeeper, offered by the ABFA. Like the RFI requirements, the exam also covers the same material as the Certified Forensic Accountant credential.

Professional organizations that sponsor these certifications offer not only educational and training opportunities but also networking opportunities so that you can interact with others who share your field of interest in forensic accounting. As you can see, the investigative certifications provide a faster path to becoming a forensic accountant!

References

American Board of Forensic Accounting, www.abfa.us

American Institute of Certified Public Accountants, www.aicpa.org

Association of Certified Anti-Money Laundering Specialists, www.acams.org

Association of Certified Fraud Examiners, www.acfe.com