What is a Certified Management Accountant (CMA)

A CMA is a Certified Management Accountant who works for businesses or non-profit organizations. Contrasted with an accountant, they deal with private accounting and not auditing as CPAs do.

The job market for a CMA is diverse, and many different occupations exist. These include Bookkeeper, Payroll Clerk, General Accountant, Budget Analyst, etc., with starting salaries ranging from \$28,500 to \$72,500 per year.

A bookkeeper does not need certification to be a part of their job and can therefore choose whether or not they want to get the CMA. On the other hand, a payroll clerk can use a certification called Certified Payroll Professional (CPP) but doesn’t have to be a CMA for them to do work as one. Finally, general accountants and budget analysts don’t necessarily need any formal qualifications other than having an undergraduate degree in accounting; however, many CMAs begin working with these professions before moving up within the company hierarchy.

To become a cost accountant, one must be certified as a CMA and licensed by the state agency that monitors accountancy. To become an internal auditor or information technology (IT) auditors requires additional certifications of either CIA for internal audits or CISA for IT audits.

Achieving the CMA certification is difficult, but it’s definitely worth all of your hard work. To receive this prestigious designation, you need to have at least two years of experience in management accounting and pass an extremely challenging exam that only about half of applicants are successful with on their first try.

A Certified Management Accountant (CMA) does not have the versatility of a CPA. This is because a CMA’s duties are fairly rote, meaning that they typically do the same work each day. On the other hand, a CPA has as much variety in their workload and tasks given to them by clients, so most accountants choose to obtain this certification rather than one from management accounting.

Most CMAs are cost accountants. A CMA cost accountant enters transactions into accounting records like journals and ledgers. CMA cost accountants also prepare financial statements. The financial statements that the CMA prepares are vital to the business. The financial statements that the CMA prepares are used for business decision-making, investor decision-making, competitive comparison, and searching for industry trends. A CMA must also attempt to discover and correct any errors in the cost accounting records. This can be done in several ways but is always very tedious for the CMA.

There are many reasons to use a CMA. They can save you money, allow you to focus on running your business. At the same time, someone else worries about the books for it, and they will do an excellent job of keeping track of important information to make sure that everything goes smoothly with taxes at year-end. It is never too early or late to start looking into finding one!