What Does a CMA Do?
A Certified Management Accountant (CMA) is an accounting or finance professional who works closely with an organization's top management to develop financial strategies, and contribute to the business decision-making process. The CMA credential indicates excellence in budget planning and analysis, strategic management, and ethical practices in accounting and finance.
The CMA is an ideal credential if you look beyond number crunching and would like to get involved in risk assessment and keep rising in leadership roles. Here's what a typical day looks like:
- Analyzing financial data to drive smarter business strategies
- Using data-driven insights to guide leaders in important financial decisions
- Conducting risk analysis for investments, mergers, and acquisitions
- Keeping on top of cost management and analysis
- Advising board members or executives on ethical, profitable, and efficient financial decisions
CMAs combine their accounting and business acumen to become leaders, such as chief financial officers (CFOs). The certification carries strong career opportunities and makes CMAs highly sought-after professionals.
History of the CMA Certification
In 1919, the National Association of Cost Accountants (NACA) was formed to promote knowledge and professionalism among cost accountants, and relate their understanding of management. The association changed its name to the Institute of Management Accountants (IMA), which eventually developed the Certified Management Accountant (CMA) program in 1972. Today, the organization adopted the name Institute of Management Accountants (IMA).
Globally, over 140,000 CMAs provide management services, the IMA regulates the CMA exam and works with students and professionals worldwide to broaden its role as a leading organization for accountants and finance professionals. As recently as September 2024, IMA adopted changes to the CMA exam to account for the changing accounting landscape.
The IMA continually updates the CMA exam to reflect the most relevant and in-demand skills in the accounting and finance industry.
CMA vs. CPA
Both CMA and CPA (Certified Public Accountant) designations bring a wealth of opportunities. Becoming a CMA is the best option if you're interested in keeping financial records, taxation, and financial planning for public companies — aiming toward the biggest decision-making partner and your organization's long-term financial goals.
| Criteria | CMA | CPA |
|---|---|---|
| Focus | Managerial accounting, financial management, data analysis, cost accounting | Public accounting, taxation, audit, compliance |
| Roles | Financial analyst, CFO, management accountant | Auditor, tax advisor, public accountant |
| Governing Body | Institute of Management Accountants (IMA) | American Institute of Certified Public Accountants (AICPA) and National Association of State Boards of Accountancy (NASBA) |
| Exam | 2 part exam | 4 part exam |
| Experience | 2 years of work experience in financial management or cost accounting | 1-2 years of work experience under a licensed CPA |
| Global Certification | 100,000+ globally certified CMAs | 670,000+ CPAs, primarily based in the US |
| Average Salary | $120,000 | $96,485 |
CMA Specialty Areas & Career Opportunities
Whether it's financial planning and analysis, cost management, or corporate finance, each CMA specialty area offers unique challenges and career opportunities. CMAs can progress from the shop floor to exploring these opportunities and impacting an organization's financial future.
- Budgeting
- Forecasting
- Financial modeling
- Performance evaluation
- Cost reduction strategies
- Activity-based costing
- Variance analysis
- Operational efficiency
- Capital structure decisions
- Investment analysis
- Treasury management
- M&A advisory
- Financial analyst
- CFMA manager
- CFO
- Management Accountant & Reporting
- Risk Management
CMA Salary
As an entry-level CMA starting as a financial analyst or cost accountant you may earn an average salary of $67,000 to mid-level management, such as a senior financial analyst, you can expect a salary of $82,000. When it comes to senior and top management positions, such as director of finance or CFO, expect your salary to rise significantly — up to $120,000 and $184,000+.
📈 Salary Growth Potential
CMAs have a higher earnings potential than their non-certified peers. They're better qualified for senior management positions and climb the corporate ladder faster. CMA Salary Survey reports indicate that CMAs earn 20% more than their non-certified peers on average.
Benefits of Earning a CMA Certification
The CMA is a gold-standard certification. With a global network of 140,000+ CMAs, you step into a world of the business elite and place yourself miles ahead of your non-certified peers. Here's why you should consider earning a CMA certification:
Skills You Need as a CMA
CMA isn't just about a designation but a combination of skillsets that makes you a go-to person for financial strategy and decision-making. Besides obtaining the CMA credential and becoming a financial management expert, these are essential skills you need to be a successful CMA:
- Strong analytical and communication skills
- Attention to detail
- Time management
- Comprehension of accounting software
- Tech savviness
- Ability to perform financial accounting and analysis
- Understanding of the regulations and standards in accounting
How Long Does It Take to Become a CMA?
CMAs must fulfill educational and experience requirements and pass the CMA exam to become certified. You don't need to satisfy these requirements before passing the exam:
Becoming a CMA in the US vs. Other Regions
Unlike a CPA designation, the CMA doesn't have special supplemental additional steps to qualify for international candidates. You can sit for the CMA exam, satisfy its requirements in your home country, and practice globally.
🌐 Global Reach
Recognized in over 100 countries, the CMA credential creates globally recognized credentials globally. Over 1 acts. Over 140,000+ CMAs are practicing globally in different industries and sectors. You can check the IMA website for the accepted accredited institutions and professional certifications to be eligible for the CMA program.