cma certification what it can mean for you

CMA Certification

What it Can Mean for You

Institute of Management Accountants (IMA)

Vision –The world’s leading association for management accounting and finance professionals

Building Your Career

• CMA Certification Program• Professional Development Opportunities• Networking & Leadership Opportunities• Local Chapter Meetings• Virtual Communities• IMA Ethics Center and Ethics Helpline

Management Accountants – Who are we?• Chief Accounting Officer/DaimlerChrysler• Chairman, a Hong Kong Bank• KPMG consulting partner• VP, Operational Excellence, Merck• Third in command at the FBI• VP, Investor Relations, Johnson & Johnson

Source: The Diverse Roles of Professional Accountants in Business,IFAC, New York, November 2004, Available at www.ifac.org.

• Act as trusted business advisors• Support business management and strategic

development• Provide accurate information for better

decisions• Act as conscience of last resort• Work “hands on” to add value in organizations • Plan for the long-term

Source: The Diverse Roles of Professional Accountants in Business,IFAC, New York, November 2004, Available at www.ifac.org.

Management Accountants – What do we do?

IMA & the Profession

• Empower professionals inside organizations who create economic value

• Foster unique role as the ones responsible for “building quality in”

• Outside audit works best when the “inside” job is done correctly

• Ethical and responsible corporate governance must come from the “inside”

CMA – CPA Comparison

CMA:• Preparer/User of

accounting information• Concept based• “Inside” corporate

professionals• Higher quality, lower

costs• Forward-looking• Player

CPA:• Auditor of accounting

information• Rule based• Public practice licensure• Attesting to the

accuracy of financial records

• Historical• Referee

CMA Certification

The appropriate “gold standard”

for accountants working inside organizations

A CMA Professional Has…

• Demonstrated ability to work across the breadth and depth of the entire accounting process within organizations

• Proficiency in decision-making, planning, and control functions

• Agreed to maintain professional competence through annual continuing professional education

• Committed to a code of ethics

How Does CMA Certification Benefit You?

• Opportunity to assess and demonstrate capabilities and expand knowledge base

• Distinguishes you from your peers and increases credibility and productivity

• Recognition of achievement• Expanded career options and greater earning

potential – CMAs earn 27% more than professionals without

certification (IMA’s 18th Annual Salary Survey, June 2007)

Certification Benefits to the Company

• Identify motivated professionals for hiring, recognition, and advancement

• Higher level of service and increased credibility among clients

• Achieve and maintain a high level of knowledge, competence, and business understanding

Objective Validation of CMA Program

• CMA continues to be relevant to the on-the-job responsibilities of management accountants (IMA Job Analysis Study, 2006)

• Compared to U.S. CPA, CFA, CMA in Canada, CMA in U.K, and ACCA in U.K.

• Multi-national corporations are incorporating the CMA certification as part of their professional development programs for employees

• CMA program is “valid, reliable, rigorous, and fair”

2006 Job Analysis Study • Periodic validation of content relevance as

practice changes over time• Survey determines current job tasks and

skills required to perform these tasks• Compare skills required to exam content• CMA continues to be relevant to

practice• Minor changes to content likely

implemented in 2008

Profile of a CMA Candidate

• 70% have a Bachelors Degree• 29% have a Masters Degree• 1% have a PhD• 6% are CPA’s• Average age: 34

Statistics

• More than 29,000 CMAs issued to date

• Pass rates for the four parts of the exam range between 50% to 60%

• 50% of exams taken outside U.S.

CMAs – Who are we?

• CFO, Foundations Behavioral Health• CFO/Treasurer, First Savings Bank• Director of Finance & Accounting, Marriott

International• Director of Technical Accounting & Reporting,

Microsoft• Finance Manager, Habitat for Humanity• Financial Controller, Johnson & Johnson• Vice President of Finance, Southeast

Corporate Federal Credit Union

Making Certification Work

• Commitment by senior management to continuing professional development

• Support for review programs• Company support for CMA exam

process• Tangible recognition for successful

completion

CMA Exam Overview

• Part 1: Business Analysis- 3 hours, 110 multiple choice questions

• Part 2: Management Accounting and Reporting - 4 hours, 140 multiple choice questions

• Part 3: Strategic Management - 3 hours, 110 multiple choice questions

These exams may be taken in any order but must all be passed before registering for Part 4

Certification Exam ContentsPart 1: Business Analysis

Global Business

20%

Quantitative Methods

15%

Business Economics

25%

Internal Controls

15%

Financial Statement Analysis

25%

Certification Exam ContentsPart 2: Management Accounting & Reporting

External Reporting

25%

Performance Measurement

20%

Cost Management

25%

Information Management

15%Budget

Preparation15%

Certification Exam ContentsPart 3: Strategic Management

Corporate Finance

25%

Decision Analysis

25%

Investment Decisions

20%

Strategic Marketing

15%

Strategic Planning

15%

Certification Exam Contents Part 4 – Business Applications

• Must complete Parts 1, 2, and 3 first• 3 hours, 4-7 essays/problems• All content from Parts 1, 2, and 3 included• Plus: Ethics, Organization Management,

Organization Communication, and Behavioral Issues

• Computer-based but no immediate scoring

Becoming a CMA• Member of IMA• Apply for admission into certification program• Register for certification exam• Fulfill educational credentials• Pass the certification exam• Satisfy the experience requirement• Comply with the IMA Statement of Ethical

Professional Practice • View IMA’s Webinar, “Navigating through the

CMA Program” at www.imanet.org/certification_started.asp

Fees• IMA Dues $195 per year• $140 registration fee per exam part in U.S.• $175 per part overseas• $125 entrance fee

- College students exempt from this fee• $70 per part for college students• Dues $39 per year for college students

Education Requirement

• Bachelors degree• Certification equivalent to CMA

or• Score in top 50th percentile on GMAT

or GRE

Experience Requirement

• 2 years in a management accounting or financial management position

or• 2 years in public accounting

or• 2 years in academia

Preparing for the CMA Exam

• Make a Personal Commitment to Self-study• Sharpen Knowledge of Exam Topics• Restore Test-taking Skills• Take Self-administered or

Instructor-guided Review Courses

Remaining a CMA• Maintain IMA Membership• Meet the Continuing Education Requirement: 30

Hours/Year (Including 2 Hours in Ethics)• Comply with the IMA Statement of Ethical Professional

Practice

Take the Challenge

Become a CMA

www.imanet.org/certification