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.
Management Accountants – What do we do?
• 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.
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
These exams may be taken in any order but must
all be passed before registering for Part 4
• 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
Certification Exam Contents
Part 1: Business Analysis
Internal
Controls
15%
Quantitative
Methods
15%
Global
Business
20%
Financial
Statement
Analysis
25%
Business
Economics
25%
Certification Exam Contents
Part 2: Management Accounting & Reporting
Information
Management
15%
Budget
Preparation
15%
Performance
Measurement
20%
Cost
Management
25%
External
Reporting
25%
Certification Exam Contents
Part 3: Strategic Management
Strategic
Planning
15%
Strategic
Marketing
15%
Investment
Decisions
20%
Corporate
Finance
25%
Decision
Analysis
25%
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