What is a CMA (Certified Management Accountant)?

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A certified management accountant (CMA) is different than a certified public accountant (CPA). In general, the certified management accountant works specifically with a company to advise them on tax matters specific to corporate tax laws. The CMA may also advise a company on corporate spending, budgeting, and financial planning.

The certified management account is unlike the CPA because he or she seldom works with the public. Instead the certified management accountant is usually employed directly by a company in the capacity of house counsel on all business tax and financial affairs. The CMA may work with company employees to help them make good choices regarding investments or help them discover tax breaks and loopholes, but their primary job is to oversee the financial and tax decisions of the corporate structure.

One undergoes different training and certification to become a CMA. Training usually involves study in economics, analysis of financial statements, measuring performance, budgeting, financial planning and business ethics, as well as intense study of corporate taxation laws within both federal and state parameters.

Certification involves three to four-part testing over several days that demonstrates proficiency in the above, but also demonstrates knowledge of those things required for the CPA. Most who specialize in certified management accounting claim the certification tests are a little more difficult than CPA testing.

The CMA may come from a slightly different field than the CPA. They tend to have at the very least, a four-year degree in business. States may also require specific classes prior to allowing examination. Yet, the CMA may be able to study more aspects of business than the CPA. Additionally, there are a number of schools that now offer correspondence or Internet courses to quickly pass the CMA exams, if one already has any degree in Business, Finance or Economics.

Most other countries have some form of CMA position or designation, since all big companies benefit by in-house counsel from financial experts. In Canada, the training and name are the same. In the UK, the certified management account is called a chartered management accountant.

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