The Role of Managerial Accounting and The IMA

Great Time to Be entering Accounting ProfessionThe employment of accountants and auditors is expected to grow through the year 2016 according to the 2008-2009 Occupational Outlook Handbook from the US Department of Labor

Why Expected Need for Accountants and Auditors?Corporate governance reforms, an increasingly global business environment, and rapidly changing technologies are fueling a need for accounting and finance professionals with advanced skills and up-to-date knowledgeThe best job prospects will be for accountants and auditors who have a college degree or any certification

What is Management Accounting?Management Accounting is a professional discipline that has an integral role in formulating and implementing the organizations strategy

Who are Management Accountants?Management Accountants are part of the management team, working within the organization at many levels: from top-level management to support-level accounting and finance professionals. Management Accountants apply their knowledge and experience in accounting and financial reporting, budgeting, decision support, risk and performance management, internal control, and cost management.

Management AccountantsThe vast majority of accounting majors will ultimately end up in private or governmental accounting at some point during their careerAmerican Institute of Certified Public Accountants (AICPA) indicates that over 140,000 CPAs- more than 40% of its membership practice accounting in business and industry

CertificationsRHI (Robert Half International) Guide to Certifications lists 42 certifications for accounting, finance, and operation management

What Distinguishes IMA?IMA is the exclusive organization that promotes and offers the CMA certification.

About IMAFounded 1919Mission-To provide a dynamic forum for management accounting and finance professionals to develop and advance their careers through certification, research, and practice development, education, networking and the advocacy of the highest ethical and professional practices

More About IMAVision: The worlds leading association for management accounting and finance professionalsNearly 60,000 Members85% U.S.15% International

Certification-It PaysIMA 19th Annual Survey (Strategic Finance June 2008 coauthored by Karl Reichardt, Dean Valparaiso University and Calumet Chapter IMA member) found that IMA members who have a certification receive a higher average salary and compensation than those that dont have a certification.

Certification Keeps PayingThe differences in compensation continue to grow throughout an individuals careerOn average, an accountant with CMA certification will make 25% more than accountants without certificationOn average, an accountant with both CMA and CPA Certifications will make 32% more than accountants without certification

What is CMA?CMA= Certified Management AccountantCMA certification targets corporate finance professionals requiring the skills related to management accountingCMA certification indicates proven knowledge of a variety of business-related topics, which allows finance professionals to act more as strategic business partners than as number crunchers

More about CMAThe CMA is a rigorous certification that requires demonstration of the CMA body of knowledge through a four part exam and through educational and experience requirements.CMA certification also requires a commitment to continuing professional education.

CMA EXAM TOPICS

Part 1 Business AnalysisPart 2 Management Accounting and ReportingPart 3 Strategic ManagementPart 4 Business Applications

Part I Business Analysis110 Multiple Choice QuestionsBusiness Economics (25%)Global Business(20%)Internal Controls(15%)Quantitative Methods(15%)Financial Statement Analysis (25%)Three hours allotted to completeWaiver available if CPA, CIA or CFA

Part 2 Management Accounting and Reporting 140 Multiple Choice Questions

Budget Preparation (15%)Cost Management (25%)Information Management (15%)Performance Measurement (20%External Financial Reporting (25%)Four hours allotted to complete

Part 3 Strategic Management110 Multiple Choice QuestionsStrategic Planning (15%)Strategic Marketing (15%)Corporate Finance (25%)Decision Analysis (25%)Investment Decisions Analysis (20%)Three hours allotted to complete

ResultsNo penalty for incorrect answersA score report is available immediately after parts 1-3Scaled Scores from 200-700 500 passingIf a passing score not received in 2-3 weeks will receive a detail of performance report

Part 4 Business ApplicationsBetween 3-7 written essays and quantitative responsesOrganization ManagementOrganization CommunicationsEthical ConsiderationCapstone Case Studies of parts I-IIIThree hours allotted to completeGraded by Subject Matter Expert (SME)Pass Fail-Results in about 30 days

When is the CMA offered?Parts 1,2 and 3 are offered January-FebruaryMay-JuneSeptember-OctoberParts 4 offered 3 times per year (Must pass parts 1-3 to take part 4)AprilAugustDecember

To Take the CMA ExamJoin the Institute of Management AccountantsStudent Membership $39.00If join as student $15.00 membership registration fee waivedCan join online at http://www.imanet.org

Education Requirements for CMABachelors Degree in any area from an accredited college or universityAll transcripts must be submitted in english and show the official seal of the college or universityOR Score in the 50th percentile or higher on either the Graduate Management Admission Test (GMAT) or the Graduate Record Examination (GRE). OR

EDUCATIONAL REQUIREMENTS CMAProfessional Qualification comparable to the CMA Charted Financial Analyst (CFA)Certified Internal Auditor (CIA)Certified Public Accountant (CPA)CAN TAKE THE EXAM AS A STUDENTNO 150 hour requirement

Experience Requirements for CMA2 continuous years of professional experience in management accounting or financial managementQualifying experience consists of positions requiring judgments regularly made employing the principles of management accounting and financial management. Such employment includes financial analysis, budget preparation, management information system analysis, financial management, management accounting, and auditing in government, finance or industry, management consulting, auditing in public accounting, research, teaching or consulting related to management accounting or financial management

CMA Fees$200 Certification Entrance Fee IncludesCredential review for educational qualificationCredential review for experience qualificationElectronic access to the CMA Resource guide to exam preparationAccess to the Certification Listserv for peer-to peer networkingFinal Score Report

Also Include in Certification Entrance FeePersonalized numbered CertificateCongratulatory notification to employer or others if desiredMaintenance of continuing education recordsCMA Assessment tool for 6 monthsPrintable Q & A Electronic booksRetired Questions

Discounts for Students and FacultyCertification Entrance Fee for students in US, Canada and Mexico= $75.00Each Exam part is $190.00. For Students 50% off = $95.00 Faculty Members first time Free, 2nd time around $95.00

Where to take the CMA ExamPrometric Testing Centers606 West 81st Street, Merrillville, IN.17936 South Halsted Street, Homewood, IL.

After Become a CMA30 hours of Continuing Professional Education (CPE) required each year2 of the 30 hours must be in ethicsMust maintain membership in IMAA good source of CPE and networking opportunities- local chapters

Calumet Chapter IMAServes Northwest Indiana and Southern Suburbs of ChicagoApproximately 80 membersMonthly Technical Meetings September-May excluding DecemberStudent Nights in October and MarchStudents welcome at any meeting at reduced price