CMA Advantages And Disadvantages: A qualification in financial accounting and strategic management is called Certified Management Accountant (CMA). Additionally, unlike a globally recognized certificate with an emphasis on managerial accounting and corporate finance. So before we get into how CMA might advance your career, it can be helpful to have a quick overview of the field.
The Institute of Management Accountants provides this professional credential (IMA). The IMA division, known as the Institute of Certified Management Accountants (ICMA), is responsible for granting CMA certification. Additionally, IMA is based in New Jersey and operates in over 140 nations.
Nearly a century ago, in Buffalo, New York, in 1919, the organization, then known as the National Association of Accountants, was established. Later, the organization’s name underwent a few changes until being changed to IMA in 1991 to emphasize the role played by accountants and other financial experts who work for companies. Through its demanding certification exam, IMA has expanded the CMA credential and set a high standard for management accounting professions for more than 40 years.
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What is CMA? What are the Advantages and Disadvantages of CMA?
A CMA is a highly skilled accountant with the ability to hold executive positions in various firms. People who have earned a CMA certification can use their knowledge of accounting and financial management to influence business initiatives daily.
A CMA can engage in consultative roles and exercise leadership in high-level positions, unlike public accounting, where a CPA will place a heavy emphasis on compliance, taxes, or auditing. In a boardroom or when leading an accounting department, a CMA’s expertise in finance will give them a significant voice.
- Advantages of CMA
- Disadvantages of CMA
- Comparison Table for CMA Advantages And Disadvantages
- FAQ’s on CMA Advantages And Disadvantages
Eligibility Criteria for CMA course
You need to be aware of the prerequisites for enrollment in the CMA course before applying. The following are the requirements for enrollment in the CMA program:
- An applicant must have earned a Class 10 diploma or its equivalent from a recognised Board or Institution.
- Has passed the Senior Secondary Examination under the 10+2 Scheme of a recognised Board or an Examination recognised by the Central Government as equivalent thereto; or has passed the National Diploma in Commerce Examination held by the All India Council for Technical Education, or any State Board of Technical Education operating under the authority of the said All India Council; or the Diploma in Rural Service Examination administered by the National Council of Higher Education.
- Passed the Senior Secondary School Examination (10+2), the Institute of Cost Accountants of India Foundation Course, or graduated from any discipline other than the fine arts (Entry Level) Part I of the Institute/CAT Foundation’s exam (Entry Level) Examining Part I Competency Level Part II of the Institute’s CAT exam.
- Passed 10+2 and ICSI Foundation/ICAI Intermediate, or whatever name was called.
- Completed 15 months of practical training after passing the Institute’s Intermediate course.
Advantages of CMA
The CMA certification’s key advantage is that it is regarded as the most significant accounting certification for management because it perfectly combines business and accounting. Candidates who have earned the CMA certification can thus make decisions for the firm or participate in group decisions. Corporate governance and other crucial commercials, financial, and accounting topics, such as responsible accounting, are covered in detail in the CMA program.
Candidates for this certification must understand the distinction between accounting and profitable and efficient accounting. They are given prominent jobs in an organization because businesses trust their business judgment. Consequently, obtaining a CMA certification will improve your marketability.
Opportunities for Growth:
The CMA is a management-level certification that offers numerous growth opportunities. It was discovered that CMA candidates have excellent entry-level jobs and possibilities for promotion compared to college graduates without any extra qualifications or just CPA certifications. The CMA credential signals that you intend to manage the accounts and take on additional duties in addition to accounting. Like other applicants, you can advance into management positions more swiftly with a CMA certification than without it.
For the majority of professionals, money is what drives them most, so why not you? You are qualified for more significant compensation than other applicants if you obtain a CMA certification. Recent studies have shown that applicants with a CMA certification earn up to 67% more than those with only a degree or a CPA certificate. Compared to 2016 data, this has significantly increased. The earning potential is considerably higher when perks like health insurance, pensions, and fringe benefits are considered.
This is because CMA-certified candidates advance into management more quickly after gaining experience. Even when they change positions, they receive a more significant raise due to the high demand for CMA-certified candidates in the labor market.
Increased Value as an Employee:
The CMA program gives you a better understanding of accounting, finance, and business. As a result, you don’t just do a task; you also comprehend its purpose and look for ways to complete it quickly and effectively to deliver a better outcome than anticipated.
The key questions will start coming to you. You will be respected for your perspective and quickly integrated into the management. Candidates for CMA certification who later became CFOs. Because of this, having a CMA certification will increase your value as an employee and ensure that you always receive the respect you deserve.
Disadvantages of CMA
- Toughest Competitive exam: CMA (USA) would have a difficult time competing with Chartered Accountants(ICAI), which offers a demanding Course on par with the CMA.
- Time Commitment:It will take a lot of time to become a CMA. Both educational and professional standards must be met. Two exams that you must prepare for and pass must also be taken; you have three years from the start of the programme to do so. After becoming a CMA, you are required to do 30 hours of CPE every year.
- High Financial Cost: Obtaining your CMA entails paying for the following expenses:
- Depending on whether you are a student, academic, young professional, or professional, the annual IMA membership fee ranges from $45 to $275.
- The $250 programme enrollment fee for the CMA is waived for students and academic members.
- 3 CMA exam prices are $460 per part, while students and academic members pay only $345 per part.
- Test preparation materials, such as an online self-study course or an online self-study course combined with textbooks and access to an online test bank, may cost extra money.
- Demotivation: As it is one of the toughest competitive exams, it becomes difficult for a lot of people to clear at once, due to which they feel demotivated.
Comparison Table for CMA Advantages And Disadvantages
|The MNCs are expanding internationally, and job possibilities are likewise without borders.||The cost of obtaining the CMA certification is high in terms of time and money.|
|Home countries would also provide a variety of opportunities as rich nations opened operations in developing nations, giving CMAs a boost.||It could be more expensive to purchase exam preparation resources like an online self-study course or an online self-study course that includes textbooks and access to an online test bank.|
|The CMA (USA) Quality Standards would contribute to the development of governance rules.||Since it’s one of the hardest competitive tests, many people find it challenging to pass it all at once, which demotivates them.|
|The development of the CMA’s career would be a direct outcome of the expansion and prosperity of the corporations.||If you’re expecting a normal accounting career in a position that doesn’t require a certification of this level, it might not be viable to invest so much time and money to obtain it only for the bragging rights.|
FAQs on CMA Advantages And Disadvantages
What is the full form of CMA?
The full form of CMA is Certified Management Accountant
Who grants a CMA certificate?
The Institute of Management Accountants, a global organisation with a long history of ensuring members maintain high professional standards, awards the CMA certification. Successful candidates have a demonstrated skill set in areas like corporate investing, leadership, budgeting and forecasting, risk management, and even analytics and IT.
Is CMA a good idea for the future?
Getting a CMA certification is a wise career choice, especially if you want to succeed in the management accounting industry.
Is the CMA exam challenging?
The CMA exam is incredibly challenging and will push you to the edge of your knowledge. Less than half of test-takers will pass, according to the industry average CMA pass rate of only 45% for both portions. The CMA test is well known for being rigorous and challenging, therefore you should study if you want to pass.
What are the disadvantages of a CMA? ›
Disadvantages of CMA
Toughest Competitive exam: CMA (USA) would have a difficult time competing with Chartered Accountants(ICAI), which offers a demanding Course on par with the CMA. Time Commitment: It will take a lot of time to become a CMA. Both educational and professional standards must be met.
Getting a CMA certification makes you eligible for a higher salary than other candidates. In recent studies, it was found that CMA certification holders earn up to 67% more than other candidates having just a degree or CPA certificate.Is a CMA certification worth it? ›
Yes. If you want work in corporate accounting in a leadership position where you make strategic financial and business decisions, the CMA is worth it. If you are mostly interested in auditing and attestation, it probably makes more sense to pursue the CPA (Certified Public Accountant) certification.Is CMA valuable in USA? ›
Increased value: Individuals with CMA USA Certification have more authority and value in any firm. They are a valuable asset to the organization, and as a result, they are recognized by the Chief Executive Officer, top-ranking officials, and members of the board of directors.What happens if you fail the CMA exam 3 times? ›
If the candidate does not pass the exam after three (3) attempts, the candidate is no longer eligible for the CMA (AAMA) credential unless verification (an official transcript) is provided that the candidate enrolled in the same or another accredited medical assisting program again and completed all requirements for ...Why do people fail CMA? ›
4 Most Common Reasons Why People Fail the CMA Exam
Insufficient study time. Inadequate study effort. Shallow understanding of exam concepts. Lack of time management.
The CMA exam is very difficult and it will test your intellectual limits. The industry average CMA pass rate for both sections is only 45%, meaning less than half of the people taking the test will pass. The CMA exam is notorious for its rigor and difficulty, and if you want to pass, you need to prepare.How much does the CMA exam cost? ›
How much does the CMA exam cost? The CMA exam costs between $850 and $1,350, depending on whether you're a student, professor, or professional. Keep in mind that there are additional expenses such as travel and review materials.Do employers care about CMA? ›
This is because they have demonstrated a high level of competence and commitment to the profession. The Certified Management Accountant (CMA) designation is one of the most respected credentials in the accounting profession. CMAs are highly sought-after by employers and are well respected by their peers.Is CMA still in demand? ›
CMA graduates are in high demand in India and abroad due to the wide range of CMA jobs available in the private and public sectors. Furthermore, Indian CMA salaries for graduates include some extra benefits and competitiveness, such as incentives and bonuses.
How much does it cost to complete a US CMA? ›
|Study Materials + IMA Fees Bundle *||Students||Professionals|
|Official IMA study materials - Textbooks & Online Test-Bank**||$960||$960|
|IMA Membership Fee (for students = 3 years; for professionals = 1 year)||$117||$245|
|Certification Entrance Fee||$188||$250|
|CMA Exam Fees (Part 1 & Part 2)||$622||$830|
Based on CMA pass rates alone, I'm not surprised that many potential candidates are put off from wanting to tackle this exam. In fact, the majority of candidates don't get a passing score. With CMA exam pass rates as low as 45% for Part One and also 45% for Part Two, there is obviously a high level of difficulty.Can I Do Us CMA without degree? ›
In addition to passing both parts of the CMA Exam, you will have to complete a bachelor's degree or show a comparable professional certification in order to get your CMA. You will also need to accomplish two years of continuous work in accounting.What are the cons of working in the medical field? ›
Injury or illness can strike at any moment. Medical workers are needed in every kind of healthcare facility at all hours of the day and because of this you may find yourself working holidays, ten-to-twelve-hour shifts, and struggling to balance work and life.What are your weaknesses medical assistant answer? ›
This is a common general interview question for any job applicant, not just medical assistants. The trick is to cite negative traits that can be presented in a positive light, such as being a perfectionist. You could say you don't like to have outstanding tasks, so you tend to complete work ahead of schedule.How many students pass CMA first attempt? ›
Well, Here is an answer to your question only 35% of the students pass the CMA exams on their first attempt. This happens because of multiple reasons like a busy work schedule, no guidance, outdated study materials, less dedicated study hours, and many others.How many times can you fail CMA? ›
How many times can I take the exam? Initial candidates for the CMA (AAMA) Exam are allowed three exam attempts. Candidates recertifying by exam are allowed three attempts. Each attempt will require a new exam application and fee.How many CMA students pass every year? ›
|Appeared for||Candidates appeared||Passed candidates|
|Passed in either one of the group||7,767||841|
|Passed Both Groups||1.872|
1. How Many Exam attempts will be there in a year ? Ans : Every Year two attempts one is in June and one is in December.What happens if I fail CMA exam? ›
You only need to retake the exam part that was failed. Candidates may register for their new exam through the IMA website, and then schedule the new exam through Prometric, just like they did the first time.
What happens if you fail in CMA? ›
If you fail the CMA Foundation Exam and are attempting it again you must register for the exam and pay the exam fee again. As long as you retake the exam within the 3 year period, you don't have to pay the program entrance fee again. You only need to retake the exam part that was not cleared.Why is CMA so tough? ›
The US CMA Exam is considered as hardest as it tests the intellectual limits of an individual. The average passing rate for both sections is 45%, which implies less than half of the candidates taking the test rate will pass. Qualifying for any exam requires preparation and so this.Is CMA test hard? ›
The CMA exam sets the bar for mastery of these concepts high. As a result, the worldwide average pass rates for each part are fairly low, averaging only 43%. With pass rates rarely rising above 50%, the CMA exam has a reputation for being pretty tricky, and several specific factors contribute to its difficulty.How long does it take to pass CMA exam? ›
Average CMA study time for most candidates
On average, Part 1 requires 170 study hours, which you can cover in 10-13 weeks, and Part 2 takes 130 hours and 8-11 weeks. We recommend that candidates study a minimum of 12 hours each week. You can use these estimates to build a study plan that works with your schedule.
The CMA exam score is a scaled score between 0-500, 500 being a perfect score and 360 being the minimum passing score. Parts 1 and 2 of the CMA exam are split between multiple-choice questions (MCQs) and essay questions. MCQs are worth 75%, while essay questions are worth 25%.What is CMA salary? ›
An Entry Level CMA with less than three years of experience earns an average salary of ₹7.6 Lakhs per year. A mid-career CMA with 4-9 years of experience earns an average salary of ₹14.7 Lakhs per year, while an experienced CMA with 10-20 years of experience earns an average salary of ₹5.9 Lakhs per year.Can you self study for CMA exam? ›
You can prepare for the CMA exam in many ways: in a live classroom, in a virtual classroom, or on your own. You can select the method and materials that best match the way you like to study.Why is CMA less popular? ›
Every company is not required to get the cost audit done. Companies working on a very large scale are required to appoint cost auditors. Hence, the demand of CMA is very limited but it is expected that the demand will rise with the passage of time.Can CMA do income tax return? ›
As per the proposed DTC, Accountant means Practicing CA, CMA or CS within the meaning of their respective acts. In other words, DTC allows Tax Audit not only by Chartered Accountants/CAs but also by Cost Accountants/CMAs.Does Big 4 hire CMA? ›
Some of the other CMA positions available at the Big 4 include: Risk Management Advisory Manager. Accounting & Reporting Transformation Senior Consultant.
Do CMA exams expire? ›
If both exam parts are not successfully completed within three years of paying the entrance fee, any passed part will expire and the entrance fee will need to be paid again. For more information on the CMA entrance fee, visit the CMA handbook.What happens if you fail the CMA? ›
The Certified Management Accountant (CMA) exam has, on average, a 50% pass rate globally. So, what happens if a candidate does not pass the exam on the first try? Candidates are allowed to retake either part of the two-part CMA exam but will have to pay the exam registration fee again.How long does it take to complete CMA? ›
You're required to pass both CMA® (Certified Management Accountant) exam parts within three years, but you can pass (and start reaping the benefits) within one year with a dedicated study plan. Overestimating or underestimating how long it'll take you to prepare can negatively impact your studies.How long does it take to complete CMA course? ›
The duration of the course is 3 years.