The Definition and the Responsibilities of a Certified Management Accountant
A certified management accountant is an individual who has been certified by the Institute of Management Accountants (IMA) to carry out his responsibilities as a certified accountant. The certified management accountant is tested on his mastery or rather knowledge on the subjects like financial management and management accounting. To get into the specifics of the subject the certified management accountant is tested on some of the core subject matters like corporate finance, cost management, economics, performance measurement, decision analysis, strategic planning, financial reporting, and internal controls and that too with a strong emphasis on the ethics.
In order to become a Certified Management Accountant the Aspiring Candidate must meet the below mentioned criteria:
- The Educational Criteria: The candidate must have at least a baccalaureate degree in any field and that too from an accredited college or university.
- The Employment Criteria: It is mandatory that the candidate must have completed at least two continuous years of professional experience in financial management and/or in management accounting. One of the most important specifics that have to be met is that the candidate must have held the position wherein the principals of management accounting or financial management are used while making judgments. Either the experience could be prior to the passing of the examination or must be within the seven years of passing the examination.
- Membership: The candidate must be a member of IMA and must adhere to its rule and regulations.
- Continuing Education: Once the certificate is awarded, the candidate must complete at least 30 hours of continuing professional education per year and that must include at least two hours in the area of ethics.
- The Ethics: The candidate must adhere to the IMA’s statement of Ethical Professional practice.
The Duties that a Certified Management Accountant can perform are:
- Corporate governance
- Corporate finance
- In tax Preparation and planning
- Financial analysis
- Venture capital
- Income tax
- Financial Planning
The certified management accountant is responsible for preparing the financial reports of the organization, analyzing the reports as well as presenting the reports to the management as well as decision makers in the most lucid manner. The importance of the responsibilities of the management accountants can be gauged by the fact that almost all the decisions that the organization makes in order to further their business or to increase the number of employees or any other decision really depends on the financial reports prepared by him. He is the person who performs the key role in determining whether a particular project that the organization has undertaken would be beneficial to the organization or not. In fact he can play a key role in determining the projects that are worth taking up or not.