What Is CMA? The Definitive Answer to an Important Question

What is a CMA? If you want to be a leader in accounting, financial management, or business strategy, understanding the role of a Certified Management Accountant is essential.

The CMA certification is granted by the Institute of Management Accountants, an international body with a long history of ensuring members meet high professional standards. Successful candidates (like me! More on this in a minute) have a proven skill set in areas like budgeting and forecasting, risk management, corporate investing, leadership, and even technology and analytics.

As a CMA, you can achieve a lot in your career. I believe so strongly in the power of CMAs that I have dedicated my career to ensuring people like you, with ambition and big goals, can climb as high as possible in their accounting careers.

Many people in C-suite or executive-level positions hold the designation. The certification has the reputation of belonging to ambitious, driven business leaders.

Why is that? Because earning a CMA certification is no small feat. Candidates must be IMA members, have a bachelor’s degree, pass the rigorous two-part CMA exam, and earn two years of consecutive work experience.

How do I know? I’m glad you asked.

I earned my CMA in 2012 and have since helped tens of thousands of CMA candidates study for and successfully pass the CMA exam. I understand the ins and outs of this prestigious certification, and I know firsthand what the CMA can do for your career.

Read on to learn more about exactly what a CMA is, what a CMA does, career opportunities, and earning potential.

In this article:

• What Is a CMA?
• Differences Between CMA, CFA, and CPA
• Benefits of CMA Certification
• How to Get a CMA Certification

Originally published on July 20, 2019, this article was updated and republished on May 24th, 2024.

What Is a CMA?

A CMA is a professional certification sought by highly qualified management accounting professionals who thrive in leadership positions across many businesses. People who earn a Certified Management Accountant certification are globally recognized as experts in financial analysis, business ethics, risk management, and strategic business decision-making.

Unlike public accounting—where a CPA will focus heavily on compliance, taxes, or auditing—a CMA can work in consultative capacities and exercise leadership in high-level positions. As a finance expert, a CMA will have an important voice, whether it’s in a boardroom or steering an accounting department.

Most commonly, people who pursue a CMA will go after management positions or executive roles in all types of businesses.

What Does a CMA Do?

A Certified Management Accountant (CMA) plays a pivotal role in analyzing financial data, preparing financial statements, budgeting, and implementing financial strategies to improve an organization’s financial performance. They work closely with senior management to guide financial decision-making and ensure the company’s financial health.

CMAs typically hold leadership positions requiring extensive knowledge of financial accounting, strategic management, and corporate governance. They interpret financial information and develop strategies that drive the company’s growth and stability. Their expertise allows them to mentor junior accountants and lead accounting and finance teams effectively, ensuring the organization’s financial operations run smoothly.

CMAs are found in a variety of organizations, including large corporations, manufacturing firms, and financial institutions, as well as both the public sector and nonprofit organizations. In these settings, CMAs contribute to financial planning and analysis, risk management, and strategic decision-making. Their ability to provide insights into financial data makes them valuable assets across different industries.

Here are some examples of the key responsibilities a CMA may be tasked with:

• Financial Planning and Analysis
  • Analyzing financial data to support strategic decision-making.
  • Performing profitability analysis and forecasting future financial performance.
• Budget Preparation and Reporting
  • Creating detailed budgets that align with organizational strategies.
  • Monitoring and reporting on budget variances to guide financial decisions.
• Cost Accounting and Analysis
  • Conducting thorough cost analysis to identify opportunities for cost reduction and control.
  • Implementing cost accounting systems that track and report on key financial metrics.
• Preparation of Financial Statements
  • Generating accurate and timely financial reports such as balance sheets, income statements, and cash flow statements.
  • Ensuring compliance with accounting standards and financial reporting requirements.
• Corporate Financial Management
  • Managing company finances, including capital structure, investments, and liquidity.
  • Advising on financial models and economic strategies to enhance corporate value.
• Risk Evaluation
  • Assessing financial risks and developing strategies to mitigate them.
  • Implementing and monitoring risk management controls and procedures.
• Implementation and Management of Financial Technologies
  • Leading the adoption and management of new financial technologies to improve efficiency.
  • Integrating advanced systems for better data analysis and financial management.
• Advisory and Leadership Roles
  • Providing expert financial advice to senior management and stakeholders.
  • Participating in or leading negotiations, strategic meetings, and corporate governance.
• Internal Controls and Process Improvement
  • Developing and monitoring internal controls to ensure the integrity of financial data.
  • Recommending and implementing improvements in financial processes and management practices.

A CMA is qualified to provide insight, develop business strategies, and work with senior management to execute these strategies. Ultimately, a CMA can be responsible for leading a company to financial strength and growth.

What Are Common CMA Roles?

The CMA designation can open many doors. Unlike a CPA, who typically performs tax and audit work, a CMA has a broad range of job roles they are qualified to perform.

Here are a few examples of what CMA job titles can include:

• Cost or Corporate Accountant
• Accounting Manager
• Chief Financial Officer
• VP of Finance
• Financial Strategist
• Corporate Controller
• Staff and Sr. Accountant

These are just a few of the roles you can hold, and you can find more in our in-depth article on CMA careers. The best part is these roles can be held in any number of interesting industries.

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Differences Between CMA, CFA, and CPA

First, a CMA is not the same as a CPA or a CFA. The main difference between the CPA and CMA is that a certified public accountant is focused on things like taxation and auditing, while a certified management accountant focuses more on strategy and the business side of finance and accounting.

On the other hand, a CFA, or Chartered Financial Analyst, focuses more on financial investments and portfolio planning.

A CPA typically performs audits and tax work, while a CMA is an expert in strategic and financial management, and a CFA is a pro at valuing assets and managing portfolios.

Part of what makes the CMA certification so beneficial is the skills you acquire. As a CMA, your critical skills allow you to support small and large businesses, while your practical skills offer higher earning potential and offer businesses greater credibility.

These skills help you advance up the corporate ladder and are in demand.

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Benefits of CMA Certification

If you’re looking for diverse career opportunities, then earning your CMA certification is a must. More and more businesses across the globe are seeking out people with a CMA because of their unique skill set, and they are rewarded financially.

A typical certified management accountant’s salary is higher than that of accountants without the designation, making it a lucrative option for career advancement. According to the latest IMA Salary Survey, on average, a CMA will earn 24% more than a non-CMA peer.

Perhaps one of the most significant advantages of earning your CMA is that it is a globally-recognized certification. Simply put, by earning your designation, you are opening up doors to new and exciting careers all over the globe. If you’re an accounting professional with wanderlust, the CMA could allow you to work anywhere in the world.

Whether you want to work in private accounting for a small business, or something bigger like a multinational corporation, your skills are in demand. You can also work in public accounting, for the government, a not-for-profit, or at an academic institution.

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What Does a CMA Earn?

If you are looking for a financially beneficial career, then becoming a CMA will definitely be appealing to you.

CMAs earn a higher-than-average salary. Besides higher base salaries, CMA roles offer above-average benefits and perks, which include things like flexible spending accounts and ample health and life benefits.

According to the IMA salary survey in 2023, the overall median base salary for a CMA in the USA was $137,137, and the overall median total compensation was $163,932. These compensation numbers have been rising significantly each year since 2018.

That’s more than enough to offset the CMA exam cost, as well as the cost of taking a CMA prep course.

The IMA’s salary survey found the benefits of what a CMA does for career prospects extend beyond higher salaries. It found that 82% of respondents believe their certification opened the door to jobs they were not qualified for before earning the CMA and 77% feel that they are valued by their organization and are making a positive impact.

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How to Get a CMA Certification

If all of this sounds appealing, there are a few basic steps you need to take to become a CMA:

1. Become an IMA member.
2. Study for and pass the CMA Exam, parts one and two.
3. Finish a bachelor’s degree (or equivalent professional certification) from an accredited school.
4. Complete the CMA work experience requirements.
5. Apply for and be granted your CMA certificate.

As a CMA, you will also have to maintain your certification through yearly continuing education credits.

Certified Management Accountant Requirements

So the question you may be asking yourself is, “How long does it take to become a CMA?” Great question.

Becoming a CMA requires time and dedication. CMA certification requirements include a 3-4 year bachelor’s degree and acquiring two consecutive years of relevant work experience.

Whether you earn your work experience before or after taking the exam does not matter; however, you cannot become a CMA without passing the CMA exam.

The CMA exam consists of two parts, which are made up of 100 multiple choice questions and 2 essay scenarios. You can sign up to take the test on one of the several CMA exam dates that are scheduled each year.

So how hard is the CMA exam? Unfortunately, it’s certainly not an easy test.

The global pass rate for the CMA exam in 2020 was 45% for both parts. While slightly discouraging to some, with the right CMA review course, you can absolutely pass the CMA exam on your first try.

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Is the CMA Right for You?

Deciding whether or not to take the plunge and become a CMA is a personal decision. One that is based on your individual preferences and desire to advance in your accounting career to executive roles.

So, what does the CMA mean to you?

For many, it is the chance to develop unique financial and strategic management accounting skills, earn a respectable salary, and gain access to new and exciting career opportunities.

Interested in learning even more about what the CMA certification is, and why it’s right for you?

Make sure to take a look at our bestselling 16-week CMA Accelerator program!

Drop your comments in the section below!

Hi, I’m Nathan Liao (aka the CMA Coach)! For the last 10 years, over 82,000 accounting and finance pros came knocking at my door seeking guidance and help. If you’re also aiming to conquer the CMA exam on your very first try—without wasting away time or money—you’ve found your ultimate guide. Dive in deeper to discover more about me and the dedicated team that powers CMA Exam Academy. Click here and let’s embark on this journey together!