What is a CMA (Certified Management Accountant)?
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 financial matters that affect the overall management of the company. The CMA may advise a company on corporate spending, budgeting, financial planning, and issues related to taxation compliance.
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 in-house counsel on all 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 issues that affect the overall corporate structure.
CMAs have specialized training and certification processes. Training usually involves study in economics, financial analysis, performance measurement, budgeting, financial planning, business ethics, and corporate taxation. Certification involves a three to four-part test that is conducted over several days. The test itself tests for proficiency CMA matters, as well as knowledge in CPA matters. Most people who specialize in certified management accounting claim that the certification tests are a little more difficult than CPA testing, though CPAs may disagree.
CMAs may come from a slightly different field than CPAs. They both tend to at least have a four-year degree in business, finance or economics. In the US, states may also require specific classes prior to sitting for the certification exam. The CMA, however, may 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 countries have some form of a CMA position or designation, since all big companies benefit by an in-house financial expert. In Canada, for example, the training and position title are the same. In the UK, the certified management account is called a chartered management accountant.
Written by Tricia Ellis-Christensen
