Management Accounting helps companies take strategic decisions and policies as well as design performance management systems based on current financial information. Management Accounting is an internal process that provides valuable financial insights through statistical information to managers to track performance, frame policies, build business models and pricing strategies matching the current market trends.
Hence these activities place management accounting as critical to the success of any organization and not exclusive to big businesses. Whether big or small, management accounting benefits all types of organizations as its integral focus is assessing business performance. Management Accounting becomes a driving factor in business as it directs the growth of an organization.
CMA refers to Certified Management Accountant qualification. It is a certification that covers specialized subjects like costing, decision-making, financial reporting and forecasting, internal controls besides others. It is approved by a leading establishment like Institute of Management Accountants (IMA) and carries a global recognition. To notch this certification, you just need 6 months of effort.
CMA is an in-demand course among management and cost accounting professionals as it widens their expertise in managerial decision-making and cost measuring concepts. It also covers fintech subjects helping professionals be industry- and tech-ready.
It is a globally recognized cost management professional course that has wide employability scope in US-based firms and F&A MNCs. One of the secrets of landing in a prospective career is certifications besides normal degree, and CMA US is a one-off option!
The CMA exam has two parts. It includes topics that Management Accountant or Financial Analyst needs to know!
Candidates need 400 hours of preparatory time for exams
Exam pass rates of over 40%
Beginning 2020, the exam also tests “Technology and Analytics”
US CMA exams are conducted in two parts. One is Financial Planning, Performance, and Analytics. The other is Strategic Financial Management. Each subject covers 12 topics (6 for each part), which include fundamentals of laws to all modern-day accounting ethics. The subjects are industry-led and focused to bridge the skill gap among F&A professionals.
The course comprises 2 parts covering the following concepts/subjects:
Part 1:
External Financial Reporting Decisions - 15%
Planning, Budgeting, and Forecasting - 20%
Performance Management - 20%
Cost Management - 15%
Internal Controls - 15%
Technology and Analytics - 15%
Part 2:
Financial Statement Analysis – 20%
Corporate Finance – 20%
Decision Analysis – 25%
Risk Management – 10%
Investment Decision – 10%
Professional Ethics – 15%
US CMA scoring is done based on two criteria: difficulty of the question and number of MCQs answered correctly. One has to pass the exams at a single level and the success rate will be based on scoring a passing mark of 360, measured at 0-500 scale. Other than lengthy subjective, each part has 100 MCQ sections and two essay scenarios in each. All it requires is a positive attitude to face the challenges of becoming the next US CMA.
To obtain the CMA certificate, candidates need to fulfill the following criteria:
Examination - Clear Part 1 & Part 2 of the exams.
Education Qualification - Bachelor’s degree.
Note: The education requirement may be completed within 7 years of passing the examination. This implies that students who are pursuing their bachelors degree are eligible to take the CMA exams.
Experience - 2 years of professional experience in accounting or finance.
Note: The experience requirement may be completed within 7 years of passing the examination.
The primary criterion to appear for the US CMA exam is to have a university degree. The bachelor’s degree can be from any stream (except humanities) or professional accounting certification with 2 years of professional experience in a relevant field. Institute of Management Accountants (IMA) has relaxed the entry criteria for the undergraduates who can have another seven years to produce the documents upon successful completion of two parts of the exam.
Miles assures 360-degree support in both academia and course management. Further, it takes care of your evaluations, scoring, logistical support, exam registrations for all Miles CMA Review candidates.
Miles harbors qualified CMA members who have experienced the complete CMA journey to guide those that are worried about ways to manage the CMA preparation.
For every candidate, the Miles Placement team is active enough to rearrange interview calls at Big 4s or top MNCs in India. Miles creates a bright future for their alumni even after clearing the CMA exams.