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CMA Salary in India for freshers and experienced 2023-24

Posted on by Imarticus Learning

Certified Management Accountant, or CMA, is one of the most prominent finance courses that extends proficiency in various financial domains, including financial planning, control, analysis, decision support, and professional ethics. A CMA Certification 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. But have you ever wondered over the question – What is the CMA Salary in India? 

We’ll try to answer your questions around the average salary of CMA in India with this article. 

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?

Before understanding more about CMA salary in India, let’s dive deep into the basics of what CMA is.

 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 in India

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 and INR 20 LPA, with an average of INR 6 Lakhs offered per annum in India. While the mentioned figures broadly display the CMA salary in India, there are various factors at play in deciding the exact number offered to skilled employees. 

CMA Salary in India Based on Different Factors

The average salary of CMA in India 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 CMA 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 in India. 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. 

These can actually lead your way to the highest-paying CMA salary in India.

Pursuing a US CMA course after acknowledging the CMA certification 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 US CMA 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 in no time!

Enrol now to get started!

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!

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.

Explain the Value of a CMA Certification and its Impact on Salary and Job Prospects

Posted on by Imarticus Learning

In the competitive finance and accounting world, professionals constantly seek ways to stand out from the crowd and advance their careers. 

One surefire way to achieve this is by obtaining a Certified Management Accountant (CMA) certification. The Certified Management Accountant (CMA) qualification is a badge of honor.

So, hang tight as we explore the mind-blowing benefits of the certified management accountant certification course and how it may elevate your job from average to outstanding. 

Let’s begin the fascinating adventure of comprehending the value of a CMA certification and its spectacular influence on your earnings and employment opportunities. 

What is CMA Certification?

Before we dive into the benefits, let’s first understand what CMA certification is all about. 

The Certified Management Accountant (CMA) is a sought designation that shines brighter than a thousand stars in the exciting world of finance and accounting. This esteemed achievement award is more than just a frill for your resume; it’s a magical key that opens the door to limitless chances in management accounting and financial management.

You acquire a title when you become a CMA and search for knowledge that spans a mind-boggling array of abilities. Imagine yourself donning the financial planning cape, brandishing the analytical sword, and mastering the art of decision support while adhering to the code of professional ethics with uncompromising integrity.

Despite the difficulties in becoming a CMA, the benefits are immeasurable. Are you prepared to take control of your future, harness the power of knowledge, and shine the bright light of the Certified Management Accountant (CMA) certificate into it? 

You have a decision, and the adventure is waiting!

How does CMA certification affect salary and job prospects?

For individuals seeking competence in management accounting and financial management, the USA CMA (Certified Management Accountant) Exam is a demanding and well-recognized certification exam. 

USA CMA Exam, given by the Institute of Management Accountants (IMA), is intended to evaluate applicants’ knowledge, abilities, and aptitude in crucial areas of accounting and finance, including financial reporting, planning, analysis, control, decision-making, and professional ethics.

Here are some CMA certification benefits:

Embracing a CMA certification opens doors to exciting opportunities for salary growth in the accounting and finance industry.

  • Gaining In-Depth Knowledge and Expertise

Achieving a Certified Management Accountant certification demands commitment and diligence, yet the benefits are invaluable. The extensive CMA curriculum delves into various subjects, such as financial planning, analysis, control, decision support, and professional ethics. As you immerse yourself in the coursework, you’ll gain profound comprehension and proficiency that surpasses the usual accounting methods.

  • Standing Out in the Job Market

A CMA certification sets you apart in today’s competitive job market. Employers highly value this credential as it signifies a commitment to excellence and a strong understanding of financial management principles. The CMA designation gives you a competitive edge whether you want to advance within your current organization or explore new opportunities.

  • A Global Passport to Success

One of the most significant advantages of the CMA certification is its global recognition. As businesses continue to expand across borders, employers seek professionals who can navigate the complexities of international finance. The CMA designation acts as a global passport, opening doors to job opportunities in various countries and increasing your marketability worldwide.

  • Influence on Salary

It’s no secret that career advancement often comes hand-in-hand with a salary increase. Studies have shown that CMAs earn significantly higher salaries than their non-certified counterparts. The specialized skills and knowledge gained through the CMA program enable professionals to take on more challenging roles, leading to greater financial rewards.

  • Enhanced Job Prospects

The CMA certification boosts your earning potential and widens your career prospects. CMAs are sought after by diverse industries, including manufacturing, technology, healthcare, and financial services. The versatility of this designation means you can explore various industries and find the perfect fit for your career goals.

  • A Network of Opportunities

Becoming a CMA connects you with a vast network of like-minded professionals. The IMA provides access to a thriving community of CMAs, offering networking events, online forums, and professional development opportunities. Building meaningful connections within this network can lead to potential job offers, mentorship, and invaluable industry insights.

  • Confidence in Decision-Making

A CMA certification boosts your technical skills and hones your strategic thinking abilities. As a management accountant, you’ll be equipped to analyze financial data and provide insights that drive sound business decisions. This newfound confidence in decision-making is invaluable, allowing you to contribute significantly to your organization’s success.

  • Career Advancement and Growth

Career stagnation is a common concern for many professionals, but obtaining a CMA certification can break down these barriers. With technical expertise and strategic insight, CMAs are often considered for leadership positions within their organizations. Whether you aim to become a finance manager, a controller, or CFO, the CMA certification can catalyze your career advancement.

  • Making a Difference

Beyond personal and financial growth, the CMA certification empowers you to make a difference in your organization. As a management accountant, your role involves managing financial resources and contributing to sustainable business practices and ethical decision-making. This sense of purpose and responsibility adds depth and meaning to your professional journey.

The Final Words

The value of a CMA certification goes far beyond the letters after your name. It represents a commitment to continuous learning, a dedication to excellence, and a desire to make a positive impact in finance and accounting. From enhanced job prospects to increased earning potential, obtaining the CMA designation can unlock opportunities and open doors to a fulfilling and rewarding career. 

A CMA certification has several perks, and one of the most important ones is how much better off you’ll be financially. The income potential of professionals who achieve the CMA credential frequently increases significantly. Employers strongly respect the particular knowledge and experience that come with the CMA certification, which increases job candidates’ competitiveness. 

Imarticus Learning propels learners into endless possibilities upon attaining the CMA certification. Adopting this prestigious accreditation opens opportunities to work with Fortune 500 firms, opening the path to rewarding careers in worldwide management and accounting.

So, if you want to take your finance career to new heights, consider embarking on the CMA journey—it might just be the key to your professional success!

US CMA Exam Parts Explained: What to Expect in Each Section

Posted on by Imarticus Learning

Are you ready to take your financial career to the next level?

You should consider pursuing the prestigious Certified Management Accountant (CMA) qualification. It proves your expertise in financial management and making strategic decisions.

Getting this qualification can open up many opportunities and recognition in the business world. It all begins with the challenging CMA test.

Don’t worry! We are here to help you navigate the exciting but demanding CMA test. We’ll explain each section in detail so you know what to expect. This blog is your ultimate companion in mastering the field of Finance and will help you understand CMA exam segments.

This guide will cover everything about the CMA exam, from its content and structure to your expectations. We’ll explore financial reporting, planning, analysis, control, and strategic financial management. We want to ensure you feel well-prepared and confident on the test day.

Let’s start this exciting journey together and uncover the treasures that await in each section of the US CMA exam. Get ready for an extraordinary experience where complexity and variety come together to shape your success!

What can candidates expect in each section of the US CMA exam?

Unlock the extraordinary value CMA holders add to any company with their unrivaled strategic planning know-how! 

US cma course

A certified management accountant makes a median income of 62 percent more and a median total pay of 67 percent higher than a non-CMA. The CMA credential will serve as your compass, pointing you toward the peak of professional excellence, whether you wish to take your current job to greater heights or extend your wings and explore new career vistas.

As you begin this exciting CMA adventure, be prepared to dig deeply into the CMA Exam’s core concepts. Your hidden weapon will know it inside and out, enabling you to meet any problem head-on! So be ready and start the CMA journey! You are about to enter a world of limitless possibilities.

Empowering yourself with CMA test preparation tips is crucial if you’re preparing to take the exam. Your study method can greatly impact your path to becoming a Certified Management Accountant. Adopt a well-organized study schedule, allot enough time to each session, and concentrate on comprehending the intricate details of the exam’s subject matter. 

To exchange information and thoughts, look for trustworthy study materials, and consider joining study groups or online forums. Reviewing previous exam questions and taking mock exams can increase your confidence and acquaint you with the examination format. You’ll be well-equipped to pass the CMA test and open up a world of prospects in the financial industry with the appropriate approaches and dedication.

Prepare for the exciting CMA Exam, which consists of two engaging sections Financial Planning, Performance, and Analytics and Strategic Financial Management. You are given a challenge of 100 multiple-choice CMA Exam questions in each section, and you are then given an exciting chance to demonstrate your abilities in two 30-minute essays. With 10–12 written answers or calculation problems based on actual business circumstances, these essays will put your skills to the test.

Let’s speak about time now. For the CMA Exam, you will have a total of four hours. Three of these hours will be used to complete the multiple-choice questions, and the final hour will be used to finish the essays. It’s important to remember that the multiple-choice portion comes first, and you must receive at least a 50% score there to go on.

The scores you receive on each part’s multiple-choice questions and essays together make up your CMA Exam score. Interestingly enough, you can make a mistake on one of the section types and succeed on the test. So, when you start your voyage, let your confidence fly!

CMA Exam Part 1 – Financial Reporting, Planning, Performance, and Control

The average US CMA exam passing rate for Part 1 has been approximately 45% over the previous few years, making it challenging.

This difficulty may be brought on by the fact that CMA accounting candidates could not fully understand what to expect from each test segment. Imagine a four-hour journey with 100 multiple-choice questions, two essay questions, and “scenarios.” These scenarios put your skills to the test engagingly by requiring written and quantitative replies.

Prepare yourself for encountering six intriguing things as you explore CMA Part 1’s domain of influence:

  • External Financial Reporting Decisions – 15%
  • Planning, Budgeting, and Forecasting – 20%
  • Performance Management – 20%
  • Cost Management – 15%
  • Internal Controls – 15%
  • Technology and Analytics – 15%

CMA Exam Part 2 – Financial Decision Making

The Institute of Management Accountants (IMA) recommends preparing for this portion of the CMA test for around 130 hours over 8 to 11 weeks, somewhat fewer than the 170 hours advised for Part 1. 

However, sticking to this study schedule could be difficult for full-time professionals. Do not worry; the recommended period for each portion is 16 weeks, enabling you to manage your job and study successfully.

Let’s start this four-hour test now. You’ll encounter 100 fascinating multiple-choice questions and two captivating essay situations. Your knowledge will shine even more brightly in the fascinating essay component of the test if you get at least 50% on the multiple-choice portion.

Within CMA Part 2, you will explore six captivating topics, each offering unique insights into the world of Strategic Financial Management:

  • Financial Statement Analysis – 20%
  • Corporate Finance – 20%
  • Decision Analysis – 25%
  • Risk Management – 10%
  • Investment Decision – 10%
  • Professional Ethics – 15%

The Final Words

As we end this blog post, you are now well-equipped with priceless insights into the exciting world of the US CMA Exam. 

You now understand what lies ahead, from the thrilling voyage of Part 1, where you’ll experience Financial Planning, Performance, and Analytics, to the intriguing challenges of Part 2, delving into Strategic Financial Management.

Imarticus Learning offers a unique benefit to all CMA certification participants – guaranteed pass protection. Only half of the course price can be paid upfront when enrolling in the program; the other half must be paid after passing the CMA® test. This ensures pupils receive the encouragement and motivation they need while preparing.

Remember that while the road to success may be complicated, you have the knowledge and commitment to overcome obstacles. Accept the challenge of the CMA Exam and let it serve as a launching pad for a world of opportunity.

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

Posted on by Imarticus Learning

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?

certified management accountant course

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.