Not a day goes by that we aren’t asked us about which accounting credential is “the best.”
There is an alphabet soup of credentials out there—and determining the right one for you requires knowing what you’re interested in (and good at). Today, we’re comparing credentials for management accountants—the CGMA vs. CMA.
A Short History: The CMA
The CMA stands for Certified Management Accountant and is offered by the Institute of Management Accountants, or IMA. The IMA has been in existence since 1919 and the CMA credential has been a consistent and growing force in accounting since the 1970s.
According to the IMA, the certification demonstrates your command of the critical accounting and financial management skills, including:
- Financial planning
- Decision Support
- Professional Ethics
This makes the CMA certification especially attractive to professionals seeking to work in a variety of logistics, analyst, management and executive roles. There are currently more the 80,000 CMAs worldwide, according to the IMA.
The CMA Exam
The first CMA exam was offered in 1972. Today, it is a two-part, timed computer-based exam. Each part is four hours in length and consists of 100 multiple-choice questions and two 30-minute essays testing cost accounting, internal control and financial management topics.
Candidates must register to take at least one exam part within the first 12 months of entering the CMA program and must complete both exam parts within three years.
After passing the exam and documenting a minimum of two years’ experience in management accounting requirements, candidates can obtain the CMA certification.
Learn more about taking the CMA Exam.
A History: The CGMA
The CGMA, which stands for Chartered Global Management Accountant, has a much shorter history and has yet to develop as strong of a reputation. It was created in 2012 through a partnership between the American Institute of Certified Public Accountants (AICPA), which administers the CPA Exam, and the Charted Institute of Management Accountants (CIMA), Europe’s largest organization of management accountants.
Originally, members of the AICPA or CIMA could acquire the CGMA designation for a $150 fee and a three years of claimed management accounting experience. There was no qualification exam, so it was an easy add-on for anyone with a CPA or ACMA/FCMA (i.e. an AICPA or CIMA member).
However, the AICPA and CIMA are in the process of creating a new accounting association to support the CGMA designation.
The CGMA Exam
Launched in January 2015, the CGMA exam is a three-hour computerized case study that requires you carryout three to five management accounting tasks. You are given a data set and industry information (via download) about a hypothetical organization seven weeks prior to your test date. During the exam, new information may be provided that will change the scenario and require you to adapt your answers. Each task must be answered fully in the allotted time.
The AICPA currently offers a range of test prep and study aides for sale.
As it stands, we’d recommend the CMA designation over the CGMA for serious management accountant. Because of the established reputation of the CMA, this designation is recognized more by employers and management accountants. with its new association and a beefed-up exam, the CGMA may be worth a second look. You can always add the credential if/when it becomes necessary. Right now, a CPA or CMA is more than enough for most accountants.
With its new association and a beefed-up exam, the CGMA may be worth a second look. As the CGMA continues to develop its curriculum, it will likely be an exam to strongly consider in the near future. You can always add the credential if/when it becomes necessary.