There is an increasing trend among students to pursue cost accounting as a way of securing a lucrative career. In India, a certified management accountant (CMA) with no prior experience can expect an average annual salary of ₹2,50,000. However, as one's experience and knowledge grows, their salary is likely to increase. In fact, CMAs holding the highest position within an organization can earn a salary of up to ₹50,00,000 per year. The CMA certification has gained popularity in recent years, and we will also delve into the differences between the CMA and CA (chartered accountant) designations.
CMA positions, both in India and abroad, are in high demand, and there is a broad range of job opportunities available to graduates. Those who hold the CMA certification may find themselves on career paths in finance, management, accounting, or research. While the average CMA salary in India is around ₹2,50,000 per year, this figure can vary based on specific job responsibilities. The field of cost management accounting is both competitive and dynamic, offering a variety of career options in India and overseas.
Performance Management
CMAs are accountable for assessing the performance of the financial sector in the organisation and enhancing the performance of the workforce. They decide the structure of the company and assign responsibilities accordingly.
Cost Management
CMAs manage the entire process of budget planning and control. They aid companies in predicting future expenditures and help to minimize the risk of exceeding the budget. They calculate the expected cost when the project is still in the planning phase. They keep track of these expenses and supervise them to ensure that they are in line with the cost management plan. To keep their budget under control, they also create a cost management system and conduct proper research on projects.
Profitability Analysis
CMAs conduct profitability analysis by examining specific ratios based on the analysis's purpose. They determine profitability ratios by dividing profits or equivalent values by revenues, assets, and expenses. Furthermore, CMAs should have knowledge of return on assets, profit margin, return on capital used, and return on equity.
Internal Controls
CMAs establish and execute rules and processes that ensure accountability and financial integrity and prevent fraud. They ensure that laws and regulations are followed at work and prevent employees from engaging in theft or fraud. Additionally, they help to enhance operational efficiency and financial reporting accuracy by improving the accuracy and timeliness of financial reporting.
Investment Decisions
CMAs are responsible for making critical investment decisions regarding the allocation of funds to investment opportunities. They must select an asset or investment proposal that yields long-term returns. They also analyze the uncertainty and potential risks associated with the proposal. They determine the minimum rate of return that can help assess the long-term project's performance.
There are different sub-disciplines for students who want to pursue a career as a certified management accountant. A career as a certified management accountant can be a good option for students. Here are some of the sub-disciplines that make up a career as a certified management accountant:
Financial Advisor
A financial manager is responsible for ensuring that potential investments are financially sound. They also advise companies on splitting stock or issuing corporate bonds and conduct financial research and analysis to provide information on business stability, profitability, and liquidity.
Manager Accountant
A significant sub-discipline in a career as a certified management accountant is management accounting. This career requires students to be able to plan and strategize. Accountants need to be able to budget, plan, and strategize to help company managers make financial decisions about the company's future.
Accounting Manager
Accounting managers are responsible for developing and maintaining systems and procedures that allow others to assess and collect data. They need to be aware of other accountants and work in large industries where there are many accountants.
Cost Accountant
A cost accountant's job is to track and analyze every cost that a company incurs. This allows them to identify areas where the company is losing money and improve its financial management.
In conclusion, there are different paths to becoming a CMA, with some individuals opting to pursue the designation during their college years and others gaining work experience before committing to the certification. Experienced accountants may find the CMA exam to be more manageable due to their existing knowledge. Stay updated with the latest news, blogs, and articles related to CMA by following Miles Education.