CMA

Helping Financial Professionals Achieve Excellence

CMA-Getting CertifiedPRESENTED BY

Palo Alto CHAPTER

AGENDA• Certification Requirements

• Old & New CMA Format

• Becoming Certified (Steps)

• Steps to Succeed in Getting Certified

• Study Tips / Success Stories from Certified Members

• Chapter reimbursement for passing parts

• Benefits of Certification

• Compare CPA to CMA

BackgroundIMA Vision:

Global leadership in education, certification, and practice of management accounting,

finance and information management.•Certification Programs

– Certified Management Accountant (CMA) - 1972– Certified in Financial Management (CFM) - 1996

Certification Programs

• Certified Management Accountant (CMA)

– For accounting financial and information management professionals,

public accountants, accounting educators, and accounting students

• Certified in Financial Management (CFM)

– For corporate and banking financial management,

business analysts, financial educators and students

The only Global Professional Designations for Management The only Global Professional Designations for Management Accounting and Financial ManagementAccounting and Financial Management

The most relevant certifications for the 85% of accountants The most relevant certifications for the 85% of accountants who work inside organizationswho work inside organizations

Becoming a CMA/CFM• First steps first … Member of the IMA

• Apply for admission into certification program

• Register for certification exam

• Fulfill educational credentials

• Pass exam and satisfy experience requirement

• Comply with the Standards of Ethical Conduct

Certification Exam TransitionOriginal (Pre July

2004)Reorganized (FY05 to Present)

Ethical issues can appear in any of the examination parts

Part 1: Econ, Finance and Mgmt

Part 2 - CMA: Fin Accounting, Reporting, & Analysis

Part 2 - CFM: Corp Financial Management

Part 3: Mgmt Reporting, Analysis & Behavioral Issues

Part 4: Decision Analysis, Info Sys, & Mgmt Controls

Part 1: Business Analysis

Part 2: Management Accounting & Reporting

No Change

Part 4: Business Applications (Level C)

Part 3: Strategic Management

Part 1

Org Str, Mgmt, & Comm

15-25%

Corp Fin Mgmt

20-30%

U.S. Bus Env

10-15%

Macroeconomics 10-15%

Int’l Business Env

10-15%

Microeconomics 10-15% Internal Controls

15%

Fin Stmt Analysis

25%

Bus Econ25%

Global Business

20%

Quantitative Methods 15%

Original (Pre July 2004) Revised (FY05+)

Part 2

Financial Accounting

Environment

15-25%

Financial Statement

Analysis

15-25%

Preparation of

Financial Statements

50-70%Information

Management

15%

Cost Management

25%

External Financial Reporting

25%

Performance

Measurement

20%

Budget Preparation 15%

Original (Pre July 2004) Revised (FY05+)

Part 3

Behavioral Issues

20-30%

Control and

Performance

Evaluation

20-30%

Cost

Measurement

20-30%

Planning20-30% Strategic Marketing

15%

Corporate Finance

25%

Decision Analysis

25%

Investment

Decisions

20%

Strategic Planning 15%

Original (Pre July 2004) Revised (FY05+)

Part 4

Management Controls

15-20%

Decision Theory and

Operational Decision

Analysis

20-30%

Quantitative Methods for

Decision Analysis

10-15%

Information Systems15-25%

Investment Decision

Analysis

20-30%

Original (Pre July 2004) Revised (FY05+)

Essay questions dealing with parts

1,2, and 3 as well as:

•Organization management

•Organization communication

•Behavioral issues

•Ethical considerations

Part 2-CFM – Corporate Financial Management

Strategic Issues in Finance

15-25%

Financial Statement Analysis15-25%

Working Capital Policy and

Management15-20%

Risk Management 15-20%

Employee Benefit Plans

5-10%

External Financial Environment

15-20%

Six Steps to Succeed on Exam1. Buy Gleim CMA/CFM study material2. Study each section per part using process:

– Browse section to acquaint with main points

– Count number of questions per section (to gauge proportions)

– Reread sections in chapter to learn concepts

– Stop after section and try some questions

3. Take software practice study sessions after reading material4. Concentrate on important sections of Part (%s noted in Appendix) 5. Review sections and take notes6. Take software study session exams each day during week of exam

(60 questions, 1:15 mins)

Success Stories / Study Tips

• Prior CMA exam – Carroll• Current CMA candidate (Passed

Part 1) – Mike

Professional Development – IMA Certification Tools

• IMA Certification Listserves – sign up at http://imalistserv.imanet.org

• New IMA CMA/CFM training tools

• Lifelong Learning Center

• Publications – Strategic Finance,

Management Accounting Quarterly

IMA provides opportunities for members to take advantage of informative programs and to learn cutting-

edge financial management solutions from experts while

earning continuing professional education credits through:

Palo Alto ChapterMember Certification Program

• CMA and CFM Review Sessions– Start Part I October 2005 and finish before Christmas– Start Part II January 2006 and finish by March 2006

Meet at San Jose library

• Gleim Initiative (Volume Priced Discount)– How it works– Old and New exam software

• MicroMash Study System

• IMA Study System

Income ImpactCompensation by Age,

Average Salary

Age Range

# of Respondents

AllNo CMA or CPA

CMA CPABoth

CMA and CPA

19-29 29 $59,309 $56,917 * $61,968 *

30-39 304 $84,129 $74,185 $89,923 $82,274 $96,087

40-49 546 $96,512 $84,021 $101,241 $95,027 $110,691

50-59 306 $93,766 $81,955 $99,371 $101,945 $105,590

60 and over

56 $91,704 $82,891 $101,090 $96,784 $108,800

All 1,241 $107,744 $79,763 $97,908 $93,104 $105,155

Income Impact

Compensation by Age,

Average Total Compensation

Age Range

# of Respondents

AllNo CMA or CPA

CMA CPABoth

CMA and CPA

19-29 29 $65,321 $62,307 * $68,058 *

30-39 304 $94,077 $81,455 $106,115 $89,904 $110,628

40-49 546 $112,779 $94,852 $117,689 $112,341 $133,462

50-59 306 $108,801 $91,917 $116,431 $121,339 $124,020

60 and over

56 $102,366 $93,176 $122,270 $104,081 $114,400

All 1,241 $107,744 $89,178 $114,504 $107,744 $124,351

CMA/CFM vs. CPA

CMA/CFM CPA

Credentials: Designation:

International Recognition Limited to U. S.: a state designation

Targeted to corporate financial professionals

Targeted to public accounting

Broad-based, industry-related content

Content for public practice

Knowledge-Based Professional: Skill-Based Professional:

Prepares/uses accounting information

Audits accounting information

Concept-based Rule-based

“Inside” corporate professionals Public practice licensure

Higher-quality, lower-cost “beans”

Attests to the accuracy of the “beans”

“Player” “Referee”

Subject Matter Comparison

CMA / CFM CPAEconomics/Bus. Environment Audit/Internal ControlsDecisions/Capital Budgeting Financial ReportingStrategy/Marketing TaxationFinance Business Law Cost Measurement Govt./Non-profit Performance Measurement EthicsPlanning CommunicationInformation Management Quantitative MethodsCommunicationOrganizational Behavior

CMA/CFM vs. CPA Graph

Certification BenefitsYou The MemberYou The Member……• Opportunity to demonstrate professional capabilities

• Recognition of achievement

• Reward, promotions, and salary increases

Your Company CanYour Company Can……

• Identify motivated professionals for recognition and advancement

• Provide a necessary component of professional development

• Achieve and maintain a high level of knowledge, competence, and business understanding

As a CMA/CFM, You Have:• Demonstrated substantial knowledge of

accounting, finance, and important related fields, as well as ability to integrate accounting and financial information into the business decision process.

• Significant practical experience in management accounting or financial management.

• Proven ability to become a strategic business partner committed to a strict code of ethics and standard of excellence through a lifelong commitment to learning.

As a CMA/CFM, You Have:• Confirmed broad business competency and

mastery of management-level skills required to build quality business practices and add value to your organization by providing decision support, planning, and control over operations.

• Joined an elite group of professionals inside organizations who are relied upon by businesses around the world not only for accounting, finance, and information management, but for thestrategic planning necessary to successfully position the organization in the changing world of business.

Next Steps• Determine want and need certification

• Figure out timeline and plan

• Join Chapter Study Group now!!!

• Be prepared to buy study guides

– GLEIM appears to be the best product for the money

• Make more money once certified!!!

Remaining a CMA/CFM• Maintain IMA Membership

• Meet the Continuing Education Requirement –

30 Hours/Year (An easy way: Attend Local

IMA Chapter Dinner Meetings)

• Comply with the Standards of Ethical Conduct

Helping Financial Professionals Achieve Excellence

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