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What do you need to do to pass the US Certified Management Accountant course?

Posted on by Imarticus Learning

Overview of US CMA Certification

The US Certified Management Accountant Exam (CMA) is a two-part examination. Part 1 of the exam emphasises financial planning, performance, reporting and control, whereas Part 2 is all about risk management, financial analysis and planning. You will be given 100 Multiple Choice Questions (MCQs) and 2 essay-type questions for both parts of the exam. The duration of each exam is 4 hours.

In this article, we’ll discuss the US Certified Management Accountant Course and some time management tips.

US CMA Exam Preparation: Self Study v/s Classroom Learning

Self-study

Everyone has their own unique methods and pace when it comes to studying. Self-studying will help you to embrace your own pace. Having the flexibility to choose how to study and dedicating extra time to specific topics is a clear advantage. If you are a working professional, it will be convenient for you to take CMA online classes that enable you to be flexible.

Regarding cons, self-studying lacks accountability. Discipline is crucial for effective exam preparation. Moreover, you lack instructor and peer support for clearing doubts, requiring independent research. While some self-study programmes offer personalised guidance, this may incur extra expenses.

Classroom learning

While self-study works for some people, others prefer to be guided by a teacher. An instructor-led online programme is best for people who are not disciplined enough to take a self-study programme. Here, there will be a specific study schedule set for you. Another advantage is that you can reach out to your instructor with any questions you may have while studying.

If you travel a lot, the chances of missing a class can be high. Although you can see the recording of the missed class later, you will miss the key benefits of a live session. Also, live classes might not give you sufficient time to thoroughly absorb the material. If you are struggling with a specific topic, this can be hard.

Time management tips for US CMA exam preparation

Focus on what’s important

The US Certified Management Accountant course curriculum is huge. You need to know the important topics to learn to pass Part 1 and Part 2 of the exam. Sometimes candidates can waste a lot of their time on less important topics. So, you need to have a thorough understanding of how the exam is weighed and scored.

Be realistic about your time

Of course, your US Certified Management Accountant Course programme will come with a study schedule. But, it’s you who decides whether you want to commit to it. For instance, if you are able to devote only 8 hours a week to studying when your schedule requires you to spend 10 hours, you are hurting your chances to pass the exam. Be honest about your time and what you can commit.

Get enough sleep and exercise 

Cutting your sleep time to make time for studying is a bad idea. You need at least 7-8 hours of sleep every day to stay focused. Exercise is equally important as sleep. It will help increase your concentrate. Also, it’s the best way to clear your head after an intense studying session. Try to incorporate a 10-minute workout into your schedule.

Set simple and realistic goals

One step at a time. The US Certified Management Accountant course curriculum is vast and it takes time to cover all the topics. Hence, you need to set small and achievable goals. Trying to learn too much at a time will overload your brain. Also, achieving these small goals will keep you motivated to follow the schedule.

Say “no” to temptations

You will find endless reasons to skip studying for a day. But you have to act smart and say “no” to those excuses. Remember, your aim is to pass the US CMA exam. You have to stay committed to your study schedule to achieve that. Although it can be a little tricky with family, you need to make them understand how important this is for you.

US CMA success stories 

Imarticus Learning has years of experience working in grooming individuals for the US CMA exam. Today, our students hold high-ranking jobs at top companies such as Societe Generale, State Street, IBM, J.P. Morgan and Genpact. All of our students can vouch for the quality of the learning experience and study programme we offer.

We know the importance of having a daily study schedule for passing an exam like the US CMA which has a vast syllabus to cover. Our educated and experienced instructors will plan your study schedule. This way, you will have an idea about which topics are to be prioritised and what needs more time. Our alumni say that this study schedule has helped them focus more on their studies.

Our curriculum is up-to-date and our online sessions have flexible timings. We understand that it can be difficult for professionals to prepare for the exam while working. That’s why you are given the choice to choose a time that will fit into your schedule.

Key takeaway

Be it self-studying programmes or live classroom sessions, choose a learning path that will fit your needs. Keep in mind that your ultimate aim is to pass both exams and stay committed to your studies. If you wish to join the US Certified Management Accountant Course, visit Imarticus Learning now.

Decision Analysis: How CMAs contribute to effective management?

Posted on by Imarticus Learning

Financial analysis and number crunching are only a small part of decision analysis. It is an art that calls for acute attention to detail, strategic thought, and the capacity to deal with ambiguity. As a CMA, you develop decision-making skills that enable you to solve complex issues and design a strategy that will bring you success.

Unlocking an organization’s potential requires effective management. And CMAs, equipped with their knowledge of decision analysis, are crucial in advancing strategic objectives, maximizing resources, and guiding companies toward long-term prosperity. Your influence as a CMA extends beyond financial reports and spreadsheets and includes influencing the direction of your company.

CMAs excel in technical and analytical areas and have great problem-solving capabilities. They possess the capacity for critical and creative thought. Because of this, they are significant assets for any business seeking to improve its decision-making.

In this post, we will explain the US CMA certification, why decision analysis is crucial for organizational success, and how the US CMA training prepares you to master this skill. Let’s get started!

What is the US CMA certification?

The US CMA certification stands for Certified Management Accountant. This internationally recognized certificate validates your knowledge of management accounting and finance. 

To earn the US CMA certification, you must pass two exams covering 12 topics: financial planning, performance management, cost management, risk management, and ethics. You must also have a bachelor’s degree and two years of relevant work experience.

The Institute of Management Accountants USA (IMA USA) is a shining example for aspirant management accountants worldwide. Two international organizations offer the CMA Certification, and IMA USA is the premier organization for management accounting specialists. Students can obtain tutoring for CMA USA from only approved partners of IMA USA, guaranteeing that only the most talented individuals get the instruction they need to be successful.

Professionals with CMA (USA) certification may be found in businesses of all sizes, sectors, and all kinds. They are the backbone of the world economy, offering vital information and analysis to support commercial decision-making. 

IMA USA is the starting point for a successful management accounting career. The CMAs (Certified Management Accountant) certification is the best option for you if you have a strong passion for business and money and a desire to change the world.

The (IMA) Institute of Management Accountants offers the US CMA certification, a professional association with more than 125,000 members worldwide. The IMA provides various resources and benefits for its members, such as networking opportunities, career development, continuing education, and advocacy.

Decision Analysis: A critical component in the training of a CMA

The job of a Certified Management Accountant (CMA) in the changing world of management goes beyond figures and spreadsheets. It explores the complex process of decision-making, where accuracy and creativity collide. 

Under the guise of “Decision Analysis,” there exists a realm where CMAs design successful management plans. The compass that directs CMAs through the maze of complexity in contemporary business contexts is decision analysis. They can better analyze complex issues and weigh risks and results with extreme care. CMAs are strategic visionaries, not just figure-crunchers. Strategic planning and raw data are separated by decision analysis. 

CMAs get priceless insights by examining financial data in the context of corporate goals. This process involves spotting patterns, trends, and outliers that help businesses move away from gut instincts and toward evidence-based approaches.

Risk management is crucial in the choppy waters of business. CMAs who are skilled in decision analysis are also skilled risk navigators. Businesses can make thoughtful decisions that reduce vulnerabilities and optimize rewards by quantifying and evaluating the risks of different courses of action. This strategic boldness distinguishes between prospering and just existing.

Why is decision analysis important for organizational success?

Decision analysis evaluates and chooses alternatives based on their expected outcomes and risks. It involves identifying the problem, defining the objectives, gathering and analyzing data, generating and evaluating alternatives, and selecting and implementing the best option. 

Decisions based on data and analytics are called data-driven management decisions. This decision-making style is gaining popularity in firms of all sizes because it enables managers to make more informed and objective judgments.

Decision analysis is important for organizational success because it helps managers to:

  • Align their decisions with the strategic goals and vision of the organization
  • Optimize the use of resources and maximize value creation
  • Reduce uncertainty and manage risk effectively
  • Enhance communication and collaboration among stakeholders
  • Improve accountability and transparency
  • Monitor and evaluate the results and learn from the feedback

What role do CMAs play in implementing efficient management strategies?

Individuals who complete US CMA training are given the information and abilities to master decision analysis. The CMA (Certified Management Accountant) test measures a person’s skill in several accounting and financial management areas and includes decision analysis as a crucial component.

Candidates learn about several decision-making methods, such as quantitative and qualitative analysis, cost-volume-profit analysis, and risk management, through CMA training. They learn to weigh alternatives, consider pertinent information, and take wise judgments in various business situations.

Decision-making analysis is included as a distinct domain in the test syllabus for the CMA program. Candidates must demonstrate their understanding of decision analysis methodologies and principles. Understanding ideas like incremental analysis, pertinent costing, and the use of financial models to assess prospective outcomes are part of this.

Candidates are assisted in gaining a thorough grasp of decision analysis through the training materials and tools available in the CMA program. They learn to evaluate pertinent facts, consider financial ramifications, and effectively express their conclusions. The curriculum also stresses the need to have a broad perspective, use technology to analyze data and comprehend the financial effects of company decisions.

cma salary in india

Individuals acquire the information and abilities required to master decision analysis by completing the US CMA course. They can analyze intricate business situations, weigh their choices, and make strategic judgments based on risk analysis and financial considerations.

How can a US CMA present the best way of implementing any decision?

Once you have decided based on your analysis, you must communicate it effectively to your stakeholders and implement it successfully.

 A US CMA can present the best way of implementing any decision by following these steps:

  • Explain the rationale behind your decision: You should provide a clear and concise summary of your decision problem, objectives, criteria, alternatives, evaluation process, results, and recommendations. You should also highlight the benefits and risks of your decision and how they align with the organizational goals.
  • Address any concerns or objections: You should anticipate potential questions or challenges from your stakeholders and prepare appropriate responses. You should also acknowledge any limitations or uncertainties in your analysis and explain how you plan to overcome them.
  • Provide an action plan: You should outline the steps and resources needed to execute your decision. You should also assign roles and responsibilities to your team members and stakeholders. You should also specify the timeline and milestones for your project.
  • Solicit feedback and support: You should invite your stakeholders to share their opinions and suggestions on your decision and action plan. You should also seek their commitment and buy-in for your decision. You should also express your appreciation and recognition for their contribution.
  • Monitor and evaluate the outcomes: You should track the progress and performance of your project against your objectives and criteria. You should also collect and analyze data on the impact of your decision. You should also report any issues or deviations from your plan and take corrective actions if needed.

The Final Words

Effective decision-making is crucial for success in today’s complicated and dynamic corporate environment. By giving businesses the data-driven insights and analysis they need to make wise decisions, CMAs play a crucial part in this process. A comprehensive range of financial and management accounting concepts, as well as statistical analysis and decision-making methodologies, are covered in CMA training. 

The US CMA certification is a valuable credential demonstrating your management accounting and finance proficiency. Decision analysis is one of the key skills you will learn as a US CMA. Decision analysis is essential for organizational success because it helps you to make optimal choices based on data and logic. 

The US CMA training prepares you to master decision analysis by teaching various topics and tools to apply in different situations. As a US CMA, you can also present and implement your decisions effectively and efficiently. 

Individuals who complete the CMA program at Imarticus Learning open doors to possibilities inside Fortune 500 companies, enabling them to start careers in management and accounting worldwide. Additionally, students are prepared to interact with renowned figures in the financial industry, accounting companies, consulting firms, and international organizations working in various business sectors.

The CMA program at Imarticus Learning includes a thorough pre-placement boot camp and assistance for improving resumes and developing interview skills. They provide soft skill training, assistance with job placement, and guarantee access to interviews with reputable businesses.

CMA Salary in India For Freshers and Experienced in 2023-24

Posted on by Imarticus Learning

Certified Management Accountant or CMA is one of the most prominent finance courses, which extends proficiency in various financial domains, including financial planning, control, analysis, decision support, and professional ethics.

A Certified Management Accountant Certificate can equip you with specialised skills that can further set you on the path to explore  roles like a financial accountant, budget analyst, management accountant or even a CFO

Being one of the lesser-known courses, finance aspirants are yet to explore its potential, which is said to be highly rewarding considering the growing financial market and its emerging opportunities. However, the selection of the right career path eventually comes down to one big question. Is the path lucrative?

Allow us to offer you an in-depth insight into the salary figures offered post-CMA certificate completion. But first, let us understand all about CMA and its significance.

 What is CMA?

A CMA (Certified Management Accountant)  represents a professional credential in the financial management and management accounting fields.

Granted by the Institute of Management Accountants (IMA), individuals with CMA certification often work in private firms, public firms, or government organisations to offer their financial assistance across industries.

They supervise a broad assortment of tasks, including strategic planning, documenting financial data, and funding to make cognizant decisions that fuel organisational growth. 

Job Responsibilities

  • Prepare and analyse financial statements
  • Create and maintain a company’s budget
  • Handle a company’s general ledger
  • Prepare and demonstrate financial reports
  • Make financial predictions
  • Prepare and study the company’s tax returns
  • Administer staff in finance or accounting departments
  • Conduct internal audits

 CMA Salary

certified management accountant course

Since CMA-certified individuals oversee financial and accounting management for businesses, their salaries are quite rewarding. The estimated salary range for a Certified Management Accountant is between INR 1.4 LPA to INR 20 LPA, with an average of INR 6 Lakhs offered per annum in India. While the mentioned figures broadly display the salaries offered to CMAs in India, there are various factors at play in deciding the exact number offered to skilled employees. 

CMA Salary Based on Different Factors

CMA salary prominently depends on various factors. Let’s explore some of the most prominent ones.  

i. Job profile:

After acquiring Certified Management Accountant Certification, candidates can explore various professions based on their interests and skills. The choice of job profile significantly impacts the CMA salary in India.

The following table mentions the CMA salary figures based on job profiles.

Job Profiles Average Annual Salary
Reporting Analyst INR 582,446
Financial Consultant INR 756,801
Accountant INR 269,160
Management Accountant INR 13,60,953
Financial Advisor INR 564,554

 ii. Experience:

Although equipping the necessary skill sets is vital, a CMA must hold sufficient experience to claim higher salary packages.

The following table mentions the CMA Salary in India based on experience.

Years of Experience Annual Average Salary
0-1 INR 2 to 4 LPA
1-2 INR 4 to 6 LPA
2-3 INR 6 to 8 LPA
3-4 INR 8 to 10 LPA

 iii. Company:

Some companies provide high salary packages, whereas others provide growth prospects to candidates. The choice of the company plays a vital role in determining the CMA salary. Usually, working in corporate companies is advantageous for CMAs since they provide better salary packages.

The following table indicates the CMA salary figures based on the company.

Company name Average Annual Salary
Accenture INR 7 to 12 LPA
L&T INR 6 to 12 LPA
Wipro INR 4.1 to 25.3 LPA
ONGC INR 16.2 to 23 LPA

 Potential future

CMA’s future appears promising, considering factors like the rising need for risk management, globalisation, and the need for proficiency in managing cash flow for large firms. As the global economy accelerates towards a major shift and with businesses beginning to function internationally, the opportunities for CMA professionals are expected to rise in India. 

Pursuing a CMA course after acknowledging the CMA course details can help you explore better job opportunities.

 Conclusion

Pursuing a career as a certified management accountant comes with two key benefits, i.e. increased job opportunities and a handsome paycheck.  If you aspire to work in the finance industry for years to come, the Certified Management Accountant Certification helps you to attain high-paying job roles.

Imarticus offers a Certified Management Accountant course that is bound to set your finance career on the road to success. With guidance from industry experts, you’ll be ready to explore the dynamic world of finance within no time!

Top 7 Highest Paid Finance Jobs in India

Posted on by Imarticus Learning

Being the world’s fifth largest economy, India’s finance sector consistently seeks interest from aspirants across the nation, aiming to contribute to the nation’s growth. From corporate finance to banking, myriads of finance domains are open to welcoming skilled candidates with the potential to become valuable assets. 

Along with being an in-demand career all year long, the sector is especially experiencing growth in extending job opportunities across diverse finance domains- all thanks to emerging technologies like AI and Blockchain.

The hiring of white-collar jobs in India recorded a significant rise, with the total number of jobs increasing by 23% in 2022. This growth was led by around 49% of job positions claimed under financial services, implying that there is an increasing number of job openings in the financial sector in India.

Do you wish to become a part of this dynamic industry?

Let us take you through a detailed list of the top 7 highest paid jobs in India that will help you navigate your future career.

1) Financial Analyst

Financial analysts inspect financial data and make deductions so that organisations can make intelligent financial decisions. Based on macroeconomics and microeconomics data, they make predictions about the organisation’s future performance, enabling better data-driven decisions. You can pursue a US CMA Course to acquire the skills required to become a financial analyst.

Key job responsibilities:

  • To conduct market research to recognise financial trends
  • To analyse financial data to create reports

The average salary for a Financial Analyst in India is INR 484,260 per annum in 2023.

2) Financial Advisor

A financial advisor makes decisions for clients regarding investments, personal finances, etc. They identify and recommend the most relevant services and products to fulfil the client’s needs.

Key job responsibilities:

  • To regularly update clients’ investments and constantly scout new investments
  • To provide a neutral standpoint on business development projects

 The average salary for a Financial Advisor in India is INR 564,554 per annum in 2023.

3) Investment Banker

Investment bankers primarily act as intermediaries between companies seeking capital and investors looking to allocate their funds for potentially profitable opportunities. They are versatile entities that work across processes like capital raising, market research, risk management and more. 

Key job responsibilities:

  • Key participation in Mergers and Acquisitions
  • Manage associated financial risks 
  • To counsel clients on investments

 The average salary for an Investment Banker in India is INR 17,94,292 per year in 2023.

4) Chief Financial Officer

A chief financial officer (CFO) ascertains the correctness of the company’s financial statements and reports. They work with financial auditors and accountants to prepare financial reports. They can be deemed as the leading figure in the financial domain of any organisation.

Key job responsibilities:

  • To use financial data to frame policy decisions.
  • To analyse the company’s commercial strengths and weaknesses and advise necessary actions

 The average salary of a Chief Financial Officer in India is INR 358,2104 per annum in 2023.

5) Compliance Officer

A compliance officer monitors and reports a company’s activities. Usually, public or private companies hire compliance officers to ensure their activities follow the predefined guidelines released by the company’s governance agencies. 

Key job responsibilities:

  • To develop, execute, and manage a company’s compliance program
  • To create and coordinate appropriate reporting channels to solve compliance issues

The average salary for a Compliance Officer in India is INR 522,392 per year in 2023

6) Senior Accountant

As the name suggests, a senior accountant oversees the financial entries comprising processes like revenues, expenses, liabilities, investments and more to create well-compiled and accurate records. Overall, it can be safe to say that a senior accountant is the backbone of any financial body 

Key job responsibilities:

  • Prepare financial records with utmost accuracy
  • Verifying and allocating accounts payable
  • Train junior accountants
  • Assess financial journal entries to keep records

 The average salary of a Senior Accountant in India is INR 6,05,000 per annum in 2023.

7) Hedge Fund Manager

Hedge fund managers help investors obtain the best return for their investments. After analysing the local and international markets, economy, consumer behaviour, and other related aspects, they create a financial strategy.

Key job responsibilities:

  • To offer investment recommendations to clients considering risk tolerance and predictions
  • To conduct market research and analyse trends

 The average salary for a Hedge Fund Manager in India is INR 2,800,000 in 2023.

Conclusion

Despite facing back-to-back global economic concerns, whether the global pandemic or post-pandemic recession, the future of the finance sector in India seems promising. In order to help you prepare for the optimistic future, our list of best finance jobs will enable you to navigate a career in your field of interest.

Hoping to get a headstart?

The Certified Management Accountant course from Imarticus can be your guide to navigating the complex realm of finance with ease. If you’re inclined towards accounts and financial reporting, this course is the best choice for you!

A Beginner’s Blog to Basics of Financial Accounting

Posted on by Imarticus Learning

Following an average growth of 8.5% annually across various domains, the growth of the finance sector across India is immaculate. Keeping track of its basic concepts is imperative for aspirants to step ahead and become a part of this revolutionary domain.

Financial accounting is one such concept that a finance aspirant must be well-acquainted with. 

If not, let us take you through a quick guide to explore what financial accounting is!

Understanding Financial Accounting

Financial accounting is the process of recording expenses and earnings, summarising them, and reporting those transactions within a specified period. This branch of accounting works across ethical and accurate management of financial records that any individual, company or organisation is responsible for. 

US cma course

From accounting revenues and expenses to keeping records of assets and liabilities, financial accounting oversees all sorts of financial transactions. While maintaining a neat record, effective financial accounting can help individuals and businesses navigate their expenses and resort to better economic practices in the long run.

While financial accounting is a part of our daily lives, only qualified professionals are sought to manage this domain. Experts with qualifications like a US CMA course or CA are best suited to take responsibility for this critical area.

Elements of financial statement:

A financial period can span from weeks, to months, to quarters or even calendar years. However, the financial transactions are typically prepared and reported at the end of 12 months, which may vary based on country, industry and company size. This gives an idea about the financial success or failure of any organisation. 

A Beginner’s Blog to Basics of Financial Accounting

Assets

Assets are controlled and owned by business organisations for their future usage. These are tangible items like cash and intangibles like patents, goodwill and copyrights. Fixed assets comprise machinery, vehicles, buildings or even the land on which the business is established. 

Liabilities

Liabilities comprise the amount of money which the organisation or any person owns. The standard form of liability is accounts payable, which is short-term. This refers to the promise of paying the other party for a product or service. Long-term liabilities refer to mortgages in business. 

Equity

Equities refer to the claims which are made by the owners on the assets. This is done after all the debts are paid off. In order to apply for the CMA exam, a basic understanding of these key aspects is a necessity. 

Income

This is the money that the company makes from regular business operations. The income refers to the taxes, interest payments, or different financial activities done before accounting for the expenditures. 

Expenses

Expenses comprise the money which is spent on regular business operations. You can calculate the expenses before accounting for the income or the revenues generated by your company.

Profit: Income> Expenses

Loss: Income< Expenses 

3 golden Rules of Accounting

There are three golden rules of accounting:

Rule 1 is for the real account: “Debit what comes in – credit what goes out.”

This is applied to the company’s existing accounts, which consider both tangible and intangible assets. The capital of the company is considered a liability and can be used as a credit balance. 

Rule 2 is for personal accounts: “Credit the giver and Debit the Receiver.”

Individuals use personal accounts for their own needs. When an artificial entity donates, it becomes an inflow for a company. The receiver is debited, and the company is credited in the accounting books. 

Rule 3 is for a nominal account: “Credit all income and debit all expenses.”

This is applied to nominal accounts- which have accounting transactions for a year. This is where tangible accounts are taken into consideration. 

Basic accounting equation

A basic question in your CMA certification exam can be asked about the equation for financial accounting:

Assets= Liabilities+ Capital of the owner- Drawings made by owner+Revenues-Expenses

Steps of the accounting cycling process

An accounting cycle refers to a chain of steps that accountants navigate to record, summarise and report financial transactions of any organisation.

The different steps of maintaining and managing the company’s financial systems of an accounting cycle are-

  1. Identifying financial transactions in business
  2. Recording those transactions
  3. Fixing the double entries or any anomalies
  4. Posting to a general ledger account for the debit and credit balance
  5. Calculating the unadjusted trial balance
  6. Resolving calculation errors
  7. Considering the extenuating circumstances
  8. Creating financial statements
  9. Closing the trail balance and the account book

Principles of financial accounting

The five basic principles of financial accounting that a financial accountant must learn are:-

Revenue recognition principle

Revenues are recognised by the income statement of the company. 

Cost principle

The acquisition price of the assets being purchased needs to be kept in an orderly fashion in the business expenses. 

Matching principle

The revenues should be matched with the expenses in the same accounting period.

Full disclosure principle

Financial statements should be complete and not misleading any of the stakeholders associated with the business. 

Objectivity principle 

Accountability and accuracy are two vital principles during the accounting and recording of financial statements. 

Here we conclude some of the basic principles of financial accounting that all aspirants must be familiar with. While these are the core concepts, stepping up to further build your knowledge trove is essential to keep up with the changing trends and introduced financial technologies.

If you wish to strengthen your financial skills by upskilling check out CMA Certification offered by Imarticus Learning. The main motto of the program is to help aspirants “Conquer the World of Accounting and Finance.” 

Master your core skills in financial accounting and get a chance to be placed in a Fortune 500 company and get a salary hike of up to 58%!

Management Accounting: Decision-Making and Performance Measurement

Posted on by Imarticus Learning

Management accounting deals with the identification, measurement, analysis, interpretation, and communication of financial information to the managers so that the company’s goals can be achieved. Managerial accounting is an important aspect of any organisation as it helps in informed decision-making. Decisions that are backed by strong evidence contribute to the effective growth of an organisation.

An important aspect of decision-making is performance measurement. In order to assess the effectiveness and enhance the performance of an organisation, it is important to measure and evaluate it from time to time. Performance can be measured by choosing the most appropriate metrics, proper data collection, and communication with the stakeholders. This shall help the organisation to identify the areas of improvement and make data-driven decisions. 

You can build your expertise in management accounting if you pursue a US CMA course from Imarticus Learning. Read on to learn more about the role of management accounting in performance measurement and decision-making. 

How to Measure Performance

Listed below are the steps that one should follow to conduct an effective performance analysis:

  • Identifying the organisation goals and objectives: For the proper measurement of performance, it is important to have a clear idea about the goals and objectives of the organisation. 
  • Selecting the metrics to assess the performance: Organisations have to choose the indicators based on which the company’s performance will be evaluated. These can either be quantitative measures like profit margins, revenue, etc., or qualitative aspects such as employee satisfaction and customer feedback. 
  • Reporting the performance: This is the last step of performance measurement. The result has to be written and the report has to be shared with the stakeholders. The report should highlight the key areas for improvement and performance trends. 
  • Data collection and analysis: After the metrics or the indicators have been decided, the next step is to collect the relevant data. Analysing the data will help to determine the performance. Data can be collected from internal sources like customer databases, and external sources like industry benchmarks or market research. 

What are the Benefits of Performance Measurement

Measuring the performance of an organisation is a straightforward method of tracking the organisation’s progress toward the achievement of its goals. Having a well-defined set of goals helps individuals understand their targets well. 

The performance measurement metrics help individuals to measure their progress and also assess their individual contribution towards the accomplishment of the goals. It also enables improved accountability and helps individuals identify the areas for improvement. 

Performance management helps in informed decision-making. Measuring performance also helps organisations improve their resource allocation, which in turn helps to reduce wastage and increase efficiency. By analysing the data, organisations can be informed about patterns, trends, and opportunities. Therefore, the advantages are many. 

Some Instances to Show the Importance of Management Accounting in Decision-Making 

After the data is updated and analysed clearly, it helps to generate important insights. Listed below are some instances that show how management accounting helps in efficient decision-making. 

Business Planning

Accounting data can be used to create forecasts, and also plan budgets. By clearly analysing the data, one can draw a comparison between the forecast and the organisation’s actual performance. Management accounting helps to gain visibility on the change in trends. This helps to refine the budget and predictions accordingly. 

Gaining insight into the organisation’s profit and loss and its cash flow helps to understand its financial health. This way, organisations can identify the risks that need to be addressed and also look for new opportunities for improvement. 

Performance Analysis

The inclusion of key performance indicators in management accounting helps to continuously analyse how the organisation is performing on each of the grounds. These KPIs are tailored based on the needs and preferences of the organisation. KPIs help to monitor the performance of the various operation areas that are spread throughout the business. 

Fund Allocation

Management accounting also helps organisations to identify the scope for attracting new investment. Management accounting helps to identify the most attractive scope for investment and also allocate where the cash should be invested so that it can reap the most benefits. 

Operational Changes

Performance measurement helps to have a clear understanding of the operational changes that have to be made, such as controlling the stock levels, managing the working cycles, controlling overheads, and establishing the break-even points to ensure the profitability of the organisation. 

Marketing Strategies 

Managing accounts does not only support decision-making; it is also responsible for supporting key marketing strategies. This is done by measuring the changes in the gross margin percentages. Sometimes sellers may have to cut the prices to measure the increase in sales, and in other instances, they can earn benefits by putting up the prices of certain services or products. 

However, this decision is based on the information that is derived from management accounts. Managerial accounting surrounds the different aspects of accounting that help in strengthening the information related to the metrics of business operations. Managerial accountants derive information regarding cost and sales revenue generated from the goods and services of the company. 

Wrapping Up

The  US CMA course offered by Imarticus Learning is an advanced-level course that covers the different aspects of business, accounting, finance, and analytics. 

If you are looking forward to establishing a successful career as a management accountant, you can appear for a CMA exam that will help you validate your knowledge and certify your expertise in the domain, thereby improving your chances of seeking good employment in the sector. 

Visit their website to know more. 

International Financial Reporting Standards (IFRS) vs. Generally Accepted Accounting Principles (GAAP)

Posted on by Imarticus Learning

In finance and accounting, International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) play a crucial role in ensuring the accuracy, transparency, and comparability of financial information. Understanding the differences is crucial for internationally operating companies and investors who analyse financial statements.

If you are interested in the US CMA course, read this blog to explore the key differences between IFRS and GAAP, their origins and evolution, the implications of their implementation, and the future outlook for accounting standards on the global stage. 

Origin of IFRS and GAAP

On one hand, IFRS was created by the International Accounting Standards Board (IASB). The IASB was established in 2001 and developed IFRS into a globally recognised accounting standard. IFRS has been adopted by most countries in the world, including the major economies. 

On the other hand, GAAP originated in the United States and has a long history of evolution from various activities.

Key Differences Between IFRS and GAAP

Here are the main differences between IFRS and GAAP at a glance: 

  1. Conceptual Framework: IFRS and GAAP have different conceptual frameworks that guide the preparation and presentation of financial statements. 
  2. Presentation of financial statements: They may have different balance sheets, income statements, and cash flow statement requirements that affect the presentation and classification of records. 
  3. Revenue recognition: IFRS and GAAP have different criteria and timing for revenue recognition. They may have different approaches to revenue recognition for specific lines of business or transactions, such as long-term contracts or multi-party arrangements.  
  4. Inventory Valuation: IFRS and GAAP allow different inventory valuation methods. In addition, they may have separate claims for inventory damage and reductions. 
  5. Financial instruments: IFRS and GAAP take different approaches to the classification, measurement, and presentation of financial instruments. They may also differ in accounting for derivatives and hedging activities.

Convergence of IFRS and GAAP

Efforts to harmonise IFRS and GAAP aim to unify accounting standards, but full harmonisation remains a long-term goal due to various challenges. The future requires continued convergence in key areas such as revenue recognition and financial instruments. The global adoption of IFRS is increasing, it promotes consistency and transparency in financial reporting. GAAP is still very important, especially in the United States. The future requires continuous convergence, global adoption of IFRS standards, and coexistence of both standards in different jurisdictions. Achieving global harmonisation is a complex and evolving process.

Implications of applying IFRS and GAAP

The implementation of IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles) can have several consequences and challenges: 

  1. Global business environment: Using different accounting standards presents challenges for multinational companies operating in multiple jurisdictions as they must navigate additional reporting requirements and reconcile financial statements. Harmonised measures aim to improve consistency and cross-border comparability. 
  2. Quality of Financial Reporting: Differences between IFRS and GAAP can affect the comparability and usefulness of financial statements. Investors and analysts can face challenges when comparing companies with different standards that can influence investment decisions. 
  3. Migration and implementation issues: Moving from one set of standards to another (e.g. GAAP to IFRS or vice versa) can be difficult and expensive for companies. This requires understanding and implementing new accounting principles, retraining staff, and adapting systems and processes. 
  4. Education and Professional Development: Finance and accounting professionals must be familiar with both IFRS and GAAP standards to ensure compliance and make informed decisions. Continuous training and professional development are essential to managing the complexity and changes in accounting standards.  
  5. Regulatory Compliance: Companies operating in jurisdictions that require compliance with certain accounting standards, such as US GAAP, must ensure that they meet regulatory requirements and avoid legal consequences. 
  6. Disclosure requirements: IFRS and GAAP may have different disclosure requirements that affect the level of transparency and information provided to stakeholders. Companies should carefully consider the specific disclosure requirements of each standard to meet their reporting obligations. 

Adapting to these impacts and challenges requires companies to have a thorough understanding of both IFRS and GAAP, stay abreast of changes in standards, and assess the impact on financial reporting and decision-making processes.

US CMA and IFRS-GAAP relationship

The US Certified Management Accountant (CMA) certification recognises the importance of both International Financial Reporting Standards (IFRS) and  Generally Accepted Accounting Principles (GAAP). The CMA programme includes an IFRS section that provides CMAs with information on global accounting standards. GAAP is the accounting standard used in the United States, and a CMA must have a thorough understanding of it. This ensures that CMAs are prepared to handle international financial reporting and comply with US accounting principles.

Conclusion

Although there are some convergence efforts between IFRS and GAAP, their differences present challenges to global financial reporting that require careful consideration and adaptation by companies operating in multiple jurisdictions. 

Imarticus is an institute that offers a Certified Management Accountant certification programme to help professionals prepare for the CMA exams. You can become a CMA after meeting specific educational and experience requirements and passing the CMA exam. CMAs are equipped to make management decisions and have career opportunities in finance, accounting, and strategic positions.

Understanding GST: Goods and Services Tax in India

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On July 1st, 2017, the Indian Government Implemented the Goods and Service Tax (GST) with the plan of replacing the existing multiple tax system and making it a “One Nation. One Tax”. However, ever since its implementation, a major chunk of people are yet to discern exactly what these taxes are and how these work.

Allow us to take you through a brief look at what exactly GST is, along with how it is calculated.

What is Goods and Services Tax in India?

The goods and service tax (GST) is a common value-added tax (VAT) which is applicable in India. This tax is levied on almost all the goods and services sold for domestic purposes. The GST is paid by the consumers, but it is transferred to the government by businesses for selling goods and services, so it is an indirect tax.  

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This is the reason why whatever product you buy these days will have an added GST charge included. It is a destination-based, multi-stage comprehensive tax and was conceptualised to replace the multiple indirect taxes that people initially used to pay in India. 

There are five different tax slabs for collecting GST- 0%, 5%, 12%, 18%, and 28%. On that note, petroleum, alcoholic beverages, and electricity are excluded from GST but are rather taxed differently by the state governments. 

But this is not the ultimate indirect tax that a customer pays. There are items like luxury cars, aerated drinks, and tobacco where you need to pay an additional 22% cess on top of their determined GST slab. Hence, it’s fair to say that it is not the only tax that a buyer has to pay in order to access services or goods. 

Elaboration of GST Brackets 

In order to keep track of the potential expenses of products, it is crucial to learn the latest GST rates in India. 

Let’s take a quick look at the different GST slabs and what goods come under which slab according to the 2023 update. 

GST Slabs  Items That Fall Under It
0% (nil-rated) Some food items (eggs, curd, lassi, unpacked food grains, unpacked paneer, gur, unbranded natural honey, unbranded atta, unbranded maida, beans, fresh vegetables, salt) 

Services like educational services, health services, children’s drawing, or colouring books. 
5% Food items like sugar, tea, edible oil, paneer, raisins, roasted coffee beans, skimmed milk powder, cashew nuts, milk products for babies, fabric, spices, life-saving drugs, coffee (excluding instant coffee)

Products like: domestic LPG, coal, footwear (<500), apparel (<1000), mats and floor coverings, agarbatti, etc. 
12% Food items: butter, ghee, almonds, fruit juice, packed coconut water, processed food. 

Nonedible items: computers, mobiles, umbrellas, etc. 
18% Hair oils, capital goods, toothpaste, industrial intermediaries, soap, ice cream, pasta, toiletries, cornflakes, computers, printers, 
28% Small cars, high-end motorcycles, consumer durables like AC and fridges, luxury branded items, cigarettes, and aerated drinks.*

*An additional cess of 1% to 15% applies for items like cars and superbikes. 

How is GST Calculated?

It is very simple to calculate the GST. Simply take the price of the good or service and multiply it with its respective tax slab percentage. 

For example, if you buy clothing worth INR 800, you will be paying a 5% GST on it, which makes its price:

= 800* 5%

=800*0.05

= INR 40

 The total price after adding the 5% GST would be INR 840.

Why is GST Important? 

Whether you own a business or manage the accounts for a business, you should be aware of why GST plays a crucial role in the Indian economy. 

  • Saves you from the snowball effect of tax:

The aim of GST was to bring indirect taxation under one umbrella and save the citizens from its cascading effect. Therefore, it saves you from tax over tax, which is something common in the VAT structure. 

  • Increased the registration threshold

Before the implementation of GST in India, businesses with a turnover of more than INR 5 lakhs (which might differ across different states) were liable to pay VAT. After GST, the limit was increased to INR 20 lakhs, which saved many small traders and service providers. 

  • Made the compliances simpler 

Before GST, VAT and service tax both had their separate returns and compliances, which were too complicated to follow. After GST, people have to file only one unified return. 

  • Streamlining the E-commerce operations

Pre-GST, there were variable VAT laws for e-commerce operators. In some states, they were treated as separate businesses, while in others, they were more of facilitators or mediators. Such varying treatment was eliminated after the implementation of GST. 

Become A Certified Global Accountant with Imarticus

Most certified account management courses based in India will limit your career within the nation. However, if you want to break the boundaries and explore 170+ foreign opportunities, Imarticus Learning has the best opportunity for you!

Certified Management Accountant Course by Imarticus is globally recognised as the highest credential in management accounting. This CMA USA certification enables you to explore a global finance curriculum, created while keeping in-demand finance skills in mind to guarantee you a bright future in finance 

They closely follow the US CMA exam details that increase your chances of cracking it. So, enrol today and strengthen your future in finance with Imarticus!

The Integration of Environmental, Social, and Governance (ESG) Factors in Management Accounting

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Environment, Social and Governance (ESG) is a framework stakeholders use to understand how an organisation works, risk management policies, and its performance on some ethical and sustainability issues. 

The ESG program is implemented to ensure accountability and proper execution of processes and systems to manage the impact of a company. This could vary from how the organisation treats its employees, stakeholders, suppliers and the company’s carbon footprint. 

Management accounting is used for creating reports, statements and documents, which assist managers in making better decisions for the performance of the business. 

In this article, we will discuss the ESG factors and their implementations. 

What is management accounting?

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Management accounting makes organisational goals by recognising, measuring, analysing, understanding and communicating information to the company’s managers. 

Management of any organisation is responsible for planning, organising, directing and controlling the organisation’s decisions. Management accounting helps in preparing reports for businesses which helps managers create short-term and long-term decisions. 

A certified management accountant is responsible for performing the following tasks:

  • Management accountants can help answer important questions to forecast future trends in business. 
  • Their insights on cost and product availability are important deciding factors when purchasing. 
  • In management accounting, managers create budgets and trend charts, which managers use for allocating resources and money. 

What is ESG integration? 

ESG is a framework that helps stakeholders understand an organisation’s risk management steps and opportunities regarding sustainability issues.  

ESG initiatives are responsible for broadening business sustainability efforts to position companies for long-term success. 

ESG integration can be defined as the proper consideration of environmental, social and governance factors in decision-making and investment analysis. The integration of ESG has revolutionised the capital allocation decisions in some of the world’s largest financial companies and asset managers. 

Incorporating the ESG factors into investment decisions is necessary for identifying potential risks and opportunities that traditional financial reporting may overlook. 

ESG integration could lead to better investment results by mitigating long-term risks and promoting sustainable business practices. 

Asset managers and investors have increasingly adopted ESG integration in the investment process. This is because ESG integration has significantly evolved in recent years. This has been driven mainly due to the growing investor demand for sustainable investments. 

ESG Factors

These factors include a wide range of environmental, social and governance problems that influence investments’ sustainability and financial performance. 

ESG factors can be beneficial in identifying potential risks as well as opportunities for long-term value creation. 

Environmental Factors

Any problems related to resource depletion, waste and pollution, climate change, biodiversity and ecosystems are all environmental factors. 

Including environmental factors when making investment decisions can help recognise strong environmental practices and overcome potential environmental risks. 

Social Factors 

Aspects such as labour standards, human rights, community relations, health and safety, diversity, and inclusion come under social factors. 

By assessing these factors, investors can identify companies that maintain strong community relations, promote fair labour practices, and have a diverse and inclusive work environment.

Governance Factors  

Any issues related to shareholder rights, executive compensation, board structure and composition, risk management and business ethics fall under governance factors. 

These factors will give insight into the organisation’s corporate governance practices and help identify possible governance threats and opportunities. 

Advantages and disadvantages of ESG

The advantages of ESG integration for companies and investors include the following:

  • ESG helps attract new customers for extra growth – Customers who consider ESG factors when making buying decisions will seek products and services offered by companies focused on ESG. 
  • Investment returns and sustainability can combine – Sustainability funds can have similar to better returns than traditional funds. 
  • ESG attracts and retains good employees – ESG factors help boost employees’ motivation and increase the company’s overall productivity by giving the employees a purpose. 
  • ESG investing makes companies make positive investment decisions – Companies that take ESG initiatives focus more on environmental problems and ethical practices. 
  • ESG can help costs – When companies incorporate ESG initiatives in their organisation, energy bills, operating expenses and other costs will be reduced over time. 

The advantages of ESG integration are as follows:

  • ESG doesn’t have a ‘one-size-fits-all’ method – The approach to ESG integration that might work for one organisation might not work for another. This makes it difficult to manage ESG initiatives. The need to integrate ESG in daily practices and long-term strategies increases complications. 
  • Unauthentic ESG strategies could backfire – Companies focusing on ESG inconsistently or using it as a means of brand image ploy or disconnecting from their business strategy will likely fail to be successful. 
  • No guarantee of strong stock market performance – Even though there are many success stories, integration of ESG factors does not ensure the good performance of the company’s stocks. 
  • It can be difficult to make a diverse investment portfolio – Investors who are focused on any ESG investment strategy might need help to make a balanced portfolio which aligns with long-term goals. 

How to integrate ESG factors

As priorities, regulations and legislations constantly change, the ESG landscape is complex and always evolving. To successfully integrate ESG, it is important to ensure that the ESG factors are used in all corporate strategies. 

Organisations can:

  • Implement company policies for improved diversity and inclusion. 
  • Recognise ESG risks through the supply chain. 
  • Make sure that the company’s objectives include ESG considerations. 
  • Include ESG goals in decisions of executive compensations. 
  • Educate the employees about the need to include ESG in all operations. 

Investors can: 

  • Develop an integrated framework for the assessment of ESG risks and opportunities. 
  • State your belief in investment which will guide sustainable investment strategy and embed it throughout the organisation. 
  • Get access to reliable ESG data and leading research. 
  • Employ qualitative analysis to assess industry benchmarks, economic factors, and company strategy and management quality. 
  • Use quantitative analysis for company valuation models, portfolio construction and financial forecasting. 

Conclusion 

The systematic consideration of environmental, social and governance factors in decision-making and investment analysis is ESG integration. 

ESG integrations aim to improve risk management and recognise potential business opportunities that can create long-term value. 

Clearing any US CMA exam is very difficult as CMA is one of the most sought-after careers. 

If you want to build your career in management accounting, check out Imarticus’s Certified Management Accountant course. This US CMA course has been created for financial professionals to learn the skills necessary to lead in accounting and finance. 

An In-Depth Guide to CMA Certification

Posted on by Imarticus Learning

Getting a CMA or Certified Management Accountant Certification is in high demand. It is a perfect certification course if an aspirant wants to take up a leadership role in a business. 

The credentials for CMA certification are issued by the Institute of Management Accountants (IMA), which has been globally recognised for over 50 years. The certification holds excellent value, and recruiters worldwide look for candidates who have this degree. 

In this article, let’s know in detail how to get a CMA certification alongside its examination preparations with a detailed curriculum. 

What is CMA? 

certified management accountant course

A Cost Management Accounting (CMA) is a certificate course where the designation of CMA is provided to its qualifiers. This certification is a gateway to providing a lucrative career in business accounting. 

The CMA functions on 4 pillars of knowledge. They are Regulatory Framework, Strategy, Financial Reporting and Management. Three levels of the CMA exam are: 

  • CMA Foundation (Level 1) 
  • CMA Intermediate (Level 2) 
  • CMA Final (Level 3) 

CMA Career Path 

Becoming and acquiring a CMA certification is often termed a lofty goal. The market offers a wealth of fantastic chances for those with the necessary leadership qualities in business and finance. Government organisations, publicly traded companies, privately held companies, and distinguished corporate roles offer numerous employment options for certified management accountants. Here is a detailed career path to acquire a CMA certification. 

Staff Accountant: Entry-Level CMA Position

The majority of accounting professionals begin their careers in entry-level positions. One such employment would be a Staff Accountant, an excellent way to gain the expertise you need to become a CMA. Typical jobs for beginning accountants include ledger reconciliations, bookkeeping, and fundamental accounting procedures.

Financial Analyst (1-3 Years of Experience)

You should already have some accounting experience to qualify as a financial analyst. You have to carry out the following accounting tasks:

  • Create forecasts and reports
  • Analyse both recent and historical financial data
  • Calculate depreciation and capital expenses
  • Locate and evaluate investment possibilities
  • Create profit plans
  • Overseeing the yearly and quarterly budgeting procedures
  • Create a monthly report 

Accounting Manager (2-5 Years of Experience) 

You might be qualified to apply for an accounting manager post after your first few years in accounting. Your first real people management position may be in accounting management, which is a terrific first step toward financial leadership positions.

These kinds of tasks could be carried out by accounting managers:

  • Create budgets 
  • Monitor compliance
  • Track your spending 
  • Accounting obligations 
  • Control procedures
  • Control teams and persons 
  • Report writing and presentation
  • Implement accounting procedures
  • Observe and evaluate data 
  • Oversee daily accounting activities

CMA Exam Prep and Curriculum 

You only need to be an IMA member and pay the CMA entrance fee to take the CMA Exam. Thereafter, you have to sign up for the CMA exam after joining the IMA.

The CMA exam consists of two sections. For each section, you need a 360 or above to pass. 

Exam pattern: There are two sections to the CMA exam. There are two essay questions and multiple-choice questions on the test. The multiple-choice questions will consist of three hours, and the essays will take one hour. The exam becomes difficult at each level. 

Certificate requirements: A bachelor’s degree from an approved university is one of the prerequisites for the CMA, albeit it doesn’t have to be in finance or accounting. Some professional certifications are also accepted by the IMA in place of this requirement.

Finally, you must have two years of stable job experience in management accounting or financial management before you may apply for a CMA certificate. After completing the CMA test, candidates have up to seven years to fulfil this requirement. You will use your IMA account to submit documentation and apply for your CMA certificate once you have passed the CMA exam and finished two years of employment.

Testing windows: There are three examination windows for the CMA exam. You can take the CMA exam each year at any of the following testing windows:

Testing Window 1: January-February

Testing Window 2: May-June

Testing Window 3: September-October

Conclusion 

The CMA course is extremely prestigious and has now become a mandate in many companies. This will not only upgrade your career in a management position but also provide the aspirants with real-life experience to tackle problems. 

To learn more about CMA certification, check out the Imarticus Learnings Certified Management Accountant course or the CMA course. It is a completely online programme, where experts from all around the world help you out with real-life CMA problems.