In India and abroad, one of the stable, high salaried future proof jobs belongs to Financial Management which is one of the highest-paid and stable jobs in India where US CMA stands as gold standard. The responsible accounting, which is the pillar of US CMA makes the credential a utility part in management decisions. Companies across the globe hire such qualified and skilled professionals who can effectively contribute to the growth of the organization. With the advent of globalization and open economic growth, India is no exception in this scenario and witnessing enhanced growth and opportunities.
In line with that, so many Indian companies are either started or entering into joint ventures with foreign companies as well as liberalization paved the way for MNCs to launch their anchor in India. As a result, students pursuing or want to pursue US CMA have increasing career opportunities and scope in India as well as abroad too. New employment areas and job roles are expanding in the management accounting domain where US CMA holds a tangible stake in Indian and global perspective. Let’s discuss.
Growth of US CMA-A Global Perspective
As evident from the chart (source: Strategic Finance, August,2014), half of the new CMA candidates came from the Middle East (UAE, Egypt, Saudi Arabia, and Jordan), and almost 1/4 from the Asia Pacific (China and India). The number obviously increased a lot now.
According to a comprehensive study by the IMA, CMA certification holders earn 67% more than their non-certified counterparts. As per the IMA survey, in India, US CMAS earn 136% more than non-CMAs counterparts and the gap is widening.
Job Partners of IMA in India
Leading global companies such as Amazon, Accenture, HPE, Larsen & Toubro, Wipro, and Cyqurex have partnered with IMA to seek talented US CMA holders for internships and job placements within their organizations across India. The list follows:
Amazon
Accenture
Caterpillar
Wipro Enterprises
Larsen & Toubro
Cyqurex
Entigrity
Many more to come…
Summary
US CMA is being considered the “gold standard” of management accounting, in the U.S. and spreading globally. US CMA is the largest in the management accounting domain, next to CIMA, and the most available fastest growing credential across the globe. Coming to the caption question, is CMA US worth pursuing? Considering the above information, the answer is yes particularly when we compare US CMA with other available international professional financial courses with reference to the time required, cost, job prospects and earning potential. US CMA credential can help a commerce graduate to find a suitable job as well as help a professional to get promotions also.
It is understandably hard for a student (without real working experience) to be sure which career path to take. They might be very interested in a subject but then when it comes to work, it could be a completely different experience. Not everyone has to have it all figured out or know exactly what career path they want to pursue while still working on their degree. Graduation is an important step in your career. But if you have a little idea about what is going on in the market, then only graduation is not all.
Yes, we are talking about your B. Com. You chose B. Com because you feel that you incline in business and commerce and, to be precise, accounting. But do you think completing your B. Com will give you an edge in accounting or business? You know that, right? Unfortunately, completing B. Com with a great score will not ensure success in an accounting career. You need to think farther, and you need to be on your edge.
When it comes to different career options for a commerce graduate, the most common careers after B. Com includes US CMA, MBA, M. Com, CA to name a few. Among these, US CMA is one such impressive international course in the field of management and accounting. Due to its wide acceptance, job opportunities, affordability, shorter duration, and higher pass rate, US CMA is one of the preferred career options during or after B. Com in comparison to other academic or professional courses. It has been observed that If we manage to complete CMA US with B.COM we will be able to earn at least 33.33% more than each non-certified accountant.
Some candidates decide not to take the exam early, and one of the main reasons is that they don’t know if the CMA US certification is going to be useful in their careers. If you have not completely mapped out what direction you want to go with your career yet, it may seem hard to justify all the work and study that goes into preparing for the CMA US exam, in the event that you may not need that certification at all. Many students are confused about whether to join CMA USA classes before or after graduation.
The Worth Of US CMA In 2022: By now, the majority of us are well aware about the CMA US course which confers a prestigious global professional credential in the field of management accounting…read more
The Thinking Process
Identify the Benefits of US CMA Certification
Your first step is to determine the benefits of obtaining this certification. We’ve talked about many of them here in this post. The benefits for students may vary from those for people already in the workforce. You need to determine if they are right for you before making your decision.
Compare to Other Accounting Certifications
Next, most candidates will do a comparison with other accounting certifications to ensure this is really the one they want. If you are still a student, you may want to devote some time to this research in order to be sure you are choosing the certification that matches the career path you plan to take after graduation.
If you’ve made the decision that you want to take the US CMA exam and get your certification, but you’re still a student, how do you qualify with the IMA? If you are currently enrolled in an institution of learning and have not yet graduated, you just need to prove to the IMA that you’re a student. You need to be registered for at least 6 credits per semester during an academic year. Then you will send confirmation of your degree over to the IMA within 7 years of passing the CMA US exam.
The benefit is obvious if you choose to get into management accounting right after graduation. The exam syllabus goes deep on costing analysis, internal controls, corporate finance, and financial management, which are all interesting and practical for junior financial and business analysts. You will use this information on a regular basis for your new job. If you come straight out of college, into your CMA US certification and into a job, it’s going to give you a leg up in the workforce. It will also give you a possible preference over certain job positions and promotions when they become available.
Statistics have shown that people a CMA US certification can gain higher employment than those without doing the same jobs. BCom with CMA US enables the students to obtain substantial fundamental knowledge of various financial and management accounting subjects while pursuing BCom. However, Joining CMA USA classes after graduation comes with its own challenges, especially if you are a working professional. If you are still in college it is recommended to join CMA USA classes as early as possible.
Why Should You Take the US CMA Exam Early During the Academic Study?
According to data from IMA, 23.9% of CMA candidates globally are students. (Source: SF Magazine, August 2015). This means they are taking the exam early before they have graduated from their study program. Let’s check the benefits:
Stronger Memory and Information Retention Capacity
It is quite well known that the ability to memorize and retain information is much better at a younger age. Most (but not all students) are young, as many people enter college right out of high school and at the start of their careers. If this is the case for you, it may be easier for you to learn and hold onto information you learn.
As we graduate, our book-smartness starts to depreciate, due to age as well as the fact that we have lots of things to take care of in our daily lives. Imagine the extra things you need to handle like a spouse, kids, loans, mortgage, household chores, bosses, colleagues, clients, and work projects. You won’t have many brain cells left for studying. This is why it’s much easier for students to take the exam while they are still fresh and free of these responsibilities.
May complement or supplement with BCOM syllabus
Surely, the syllabus of CMA US is such that it will cover most parts of the BCOM syllabus of any university.
Better Mentoring
It is often easier to find mentors in the college environment, versus the commercial world where your future boss may or may not be as supportive. At the college level, many people are going through the same thing, or have just gone through the same thing, and they are willing to help you get a leg up in your own start to your career.
IMA Membership and Exam Fees are Less
The IMA membership fee and exam fees are much lower for students than professionals. As long as you take at least 6 credit hours of courses in the last semester, you are qualified. Note that this discount will end once you graduate.
A Chance for the IMA Scholarship
Another advantage of taking the CMA US exam as students is the eligibility for the IMA scholarship, which allows students to take the exam at no cost to them. For this, the student has to be nominated by the concerned college/University through proper application proforma to be sent to IMA. The tip in getting this scholarship is to take initiatives in IMA sponsored events at school, such as launching the IMA Student Chapter and taking part in the student case competition. If you are able to seek help from a mentor and build a long-lasting relationship during the process, that would be a great bonus as well.
Time Saving Job Search
You will not obtain the CMA US certification right after graduation, but you could reap the benefit simply by passing the exams. By mentioning the passing of the CMA US exam in your resume you will be able to talk about the process and impact during career interviews even if your graduation is not yet completed officially.
Get Awarded
It is worth mentioning that you’ll have a chance to win the Priscilla C Payne award given only to student candidates. Again, you can only qualify for this award if you are still a student. This award is given to the candidate who achieves the highest score as a student in each teaching period. This is highly fascinating especially for any student candidates who are thinking about taking the exam early.
US CMA Review Systems, Books, Study Materials of 2022:Based on the pros and cons, following US CMA review system providers offering US CMA books, study materials, practice software’s etc., can be considered as the best US CMA review system providers that suits and can cater every type of student… Read more
Summary
The benefit is obvious if you choose to get into management accounting right after or during the graduation. The exam syllabus goes deep on costing analysis, internal controls, corporate finance, and financial management, which are all interesting and practical for junior financial and business analysts. You will use this information on a regular basis for your new job. If you come straight out of college, into your CMA certification and into a job, it’s going to give you a leg up in the workforce. It will also give you a possible preference over certain job positions and promotions when they become available.
Statistics have shown that people with a CMA US certification can gain higher employment than those without doing the same jobs. To acquire CMA USA certification, it is not important to have a background in commerce or accounting. The best way to adopt a career in commerce is to get a professional certification in the respective subjects. Therefore, students who have done their 12th grade in any stream can take up CMA USA Course. An advantage of pursuing a CMA USA course as a student is that you will only be required to pay lower exam fees with IMA and it also has the advantage of attaining IMA scholarships.
All in all, the CMA US program helps bridge the gap between college and the professional world. This is just one more bonus or benefit to come to students who decide to take the exam early.
By now, the majority of us are well aware about the CMA US course which confers a prestigious global professional credential in the field of management accounting. The question often arises: why should one pursue this course? If you are a commerce graduate and a job seeker, you might know that a mere graduation nowadays will not be enough to get a decent job.
So, you need additional professional qualifications. In doing so, you will definitely consider the options and compare in terms of the duration, cost and pass rate of such courses. Here, US CMA comes on top of others that you can achieve at one go. On the other hand, if you are a working accounting professional, you might be aware of the fact that repetitive accounting jobs are being increasingly threatened by automation through the advent of artificial intelligence (AI). So, what should you do to make your job “future-proof? The answer is go for US CMA.
Give your resume a career-enhancing boost with a CMA US certification. If you are working in the financial, accounting, or business industry, this certification can boost your profile resulting in higher pay, more benefits, and better job opportunities. You will be at the top of the hiring list of many companies.
Still, if you would think that you are already done or are doing a degree course in finance, accounts, or business, why would you need another certification? The truth is that in a CMA US certification course, you learn many things that are not usually taught in degree courses. Industry trends keep changing and for a degree to get updated accordingly takes time. US CMA certifications have this advantage.
They are all updated to be in-tune with the latest happenings. Therefore, a CMA US certification will have all the latest updates regarding accounts, business and finance. And this is what puts you at an advantage over other candidates when you are applying for your dream job. Let’s look at some other advantages of having a CMA US certification.
1. Business Appeal
The main benefit of US CMA certification is that it is considered to be the best accounting certification for management as it has the perfect amalgamation of business and accounting. In CMA US, you learn all about corporate governance and other important business aspects, finance, and accounting concepts, including responsible accounting. Therefore, candidates with CMA US certification are allowed to take business decisions or are involved in collective business decisions.
Companies trust their business acumen and they are handed important roles in an organization. This certification makes candidates learn the difference between conventional accounting and accounting that is profitable and efficient. Therefore, if you get a CMA US certification, you will have better business appeal.
2. Growth Opportunities
US CMA is a management-level certification which brings multiple growth opportunities. When compared to college graduates without any additional certification, it was found that US CMA candidates get better entry-level jobs, and opportunities to get promoted.
The CMA US certificate is a beacon that signals you are not just going to do accounting; you are going to take on more responsibilities and manage the accounts. Other candidates also do not grow beyond a certain position and salary, while with a CMA certification, you can quickly move into a management position.
3. More Money
Money is the biggest motivating factor for most professionals, so why not you? Getting a CMA US certification makes you eligible for a higher salary than other candidates. In recent studies, it was found that CMA US certification holders earn up to 67% more than other candidates having just a degree.
When benefits like health insurance, pension, and fringe benefits are measured, the earning potential is even more. This is because US CMA certified candidates move up into management faster after gaining experience, and even when they switch jobs, they get a bigger raise as CMA US certified candidates are high in demand in the job market.
Basic Accounting Knowledge Required for a Smooth US CMA Journey:– If you are serious about the CMA with no accounting experience, or get detached from your study for a prolonged period then you should start by getting up to speed with accounting basics. The idea is to get familiar with basic accounting concepts and principles…. Continue reading
According to the 2019 IMA’s CMA Salary Survey, US CMAs earn 31% higher median total compensation than individuals without the CMA designation. The average US CMA (of any age) earns $113,000 annually in total compensation.
For example, the highest median total compensation for a CMA is in the manufacturing industry, where they earn a whopping $112,000. In comparison, the median total compensation for a CMA in a government position is $91,750. While both salaries are more than acceptable, it’s nice to know your options.
Below is a full breakdown of salary by industry for your perusing pleasure:
US CMA Salary
Management Level
Median Base Salary
Top
150,000
Senior
134,071
Middle
100,000
Lower
73,717
All Levels
105,000
Plan for US CMA course in 2022- Jobs & Salary |Eligibility| Course fees |Syllabus| Duration | By Uplift Professionals:- US CMA is in great demand in all sectors. CMAs are also being recruited by MNCs like Accenture, Amazon, and Deloitte and so on for the managerial positions like financial controllers, Budget Analysts, Cost Auditors, Chief financial controller and many other high level positions…. continue reading
4. Global Opportunities
US CMA certification has value on a global level. You may be a graduate and get a good job in your country, but if you have dreams of working abroad in another country, you will have to get CMA US certification. Some countries may not give much value to your college degree, depending upon which country you have studied in and which country you want to work in. However, CMA US certification is recognized and valued the world over, and you can easily apply for a job in the Western, European, and Middle Eastern countries, where the salary scales are much higher.
5. Value as an Employee
US CMA trains you to have a better understanding of business, finance, and accounts. So, you don’t merely do a task, you understand the reason behind it and you find ways of doing it efficiently to provide a better result than expected. You will become the go-to person for important questions. Your opinion will be valued, and you will soon become an integral part of the management. Many US CMA certified candidates have also gone on to become CFOs. Therefore, with CMA US certification, you will be valued more as an employee, and will always get your due appreciation.
The CMA US empowers many accountants to move up to bigger and better things. According to the IMA, these are a few positions held by CMAs:
Staff Accountant
Cost Accountant
Senior Accountant
Controller
Budget Analyst
Internal Auditor
Finance Manager
Financial Analyst
Chief Financial Officer
Chief Executive Officer
Vice President, Finance
Treasurer
Here is a look at some of the most exciting CMA jobs globally:
Management Accountant
If you thrive on planning and strategizing, then management accounting could be an exciting career path for you. As a management accountant, you are responsible for budgeting, planning, and strategizing so that your company’s top managers and executives can focus on risk-assessed decisions about their financial future. This position requires you to be an expert in accounting with high-level communication skills. You can find management accountants in private or public businesses or within government agencies.
Financial Analyst
Do the microeconomic aspects of finance thrill you? If so, becoming a financial analyst may be right for you. For starters, financial analysts can work in many industries, including a bank or an insurance company, or even a startup or global enterprise. This role requires careful attention to detail so the analyst can assess the financial condition of a potential investment to make sure it is worthwhile.
Other daily job duties include advising businesses on how to issue corporate bonds or split stock, as well as perform financial research and analysis to provide information on the business’s profitability, stability, liquidity, and solvency.
Cost Accountant
Cost accountants are responsible for recording and analyzing each cost incurred by a business. In turn, they use this information to identify where the company is losing money unnecessarily and how to improve their financial management. Typical job duties include preparing asset, liability, and capital account entries, documenting financial transactions, making financial recommendations based on the analysis of financial history. This role is highly valued across several business models, so you could find yourself working in the retail sector, consulting firms, or directly within a business or corporation.
Accounting Manager
Accounting Managers develop and maintain accounting systems and procedures used by other accountants to collect and analyze data. Some standard job duties for an accounting manager include overseeing daily operations, monitoring and analyzing data, creating financial statements and reports, as well as upholding strict accounting policies and principles. In this role, you will oversee other accountants and would most likely work for a large company or organization where there are multiple accountants employed.
Senior Accountant
Senior accountants are more managerial than junior accountants, and tend not to perform administrative tasks. Instead, senior accountants are responsible for reporting cost margins, productivity, and expenditures within a company. Your average day of work may include preparing month-end procedures, reconciling accountant balances, and maintaining a general ledger. Senior accountants often mentor junior staff as well and will likely be expected to lead accounting initiatives with other accounting teams and departments.
Corporate Controller
Corporate controllers oversee a company’s financial and accounting functions, including everything from billing, accounts payable, accounts receivable, and budgeting. Job duties include preparing the annual budget, preparing internal and external financial statements, assessing current accounting operations, as well as coordinating activities for external auditors.
Corporate controllers often oversee other accountants, so the skills and knowledge learned from earning your CMA is invaluable. While the expertise of a controller can be utilized in any business, it is larger companies and organizations that tend to attract this position more.
Chief Financial Officer (CFO)
A Chief Financial Officer is one of the top positions you can rise to as a CMA in business. Becoming a CFO gets you a high-level executive role and the compensation to match. CFOs are largely considered the right hand to CEOs because they oversee everything from financial reporting and forecasting to a company’s investments and financial business decisions.
Some of the most critical job duties performed by a CFO include tracking cash flow, analyzing their financial strengths and weaknesses, and proposing corrective actions. You will need years of experience to develop the unique skills required to become a Chief Financial Officer, but earning your US CMA will definitely put you on the right path.
Landing a job with one of the Big Four is a career goal of many, so how can the CMA designation help you secure a future with one of them?
The Big Four are constantly on the hunt for accounting professionals who can demonstrate the qualities needed to fulfill roles such as:
The reality is all of these roles are perfect for the unique skills learned as a CMA professional.
Why Become a CMA? -What Top Professionals Says
“I decided to go after my CMA because I felt that the CPA left some gap in the trade skills that I needed to have to continue my career in industry,” says Ben Mulling, CFO of TENTE Casters, Inc., in Hebron, Ky. Mulling is a member of IMA’s Global Board of Directors and also holds the Certified Public Accountant (CPA) and Certified Information Technology Professional (CITP) designations.
Mulling says the CMA credential has “tremendously” helped him in his career. “It provided me with critical decision-support skills that I have used to advance my career to CFO of my company,” he says. Even with his CPA license, he says he could not have succeeded in guiding his company through the recession and back into growth mode without the skills he mastered as a CMA US.
Lon Searle, CFO of YESCO Franchising LLC in Salt Lake City, Utah, said he decided to become a CMA because he knew he would be promoted to CFO someday and he wanted to be prepared to be a world-class financial leader. Searle says the CMA US certification provides a very large advantage in the job market. There are jobs that require either a CPA or CMA designation, he says. CMAs are exceptional when it comes to supervising teams, managing projects, and making high-level business decisions.
Steve Kuchen, a member of the IMA’s Small Business Financial and Regulatory Affairs Committee, says, “After leaving a job, I went to a search firm specializing in finance and accounting professionals and the recruiter really impressed upon me how important it was to have some credentials after my name. He thought that the CMA would be just right based on my prior experiences and interests.”
Kuchen says attaining the CMA US shows that you are serious about your career and interested in improving your skill set. He also says the US CMA material is very relevant to real-world situations you might encounter, not only in finance and accounting but also in other disciplines like information technology.
Summary
If you are contemplating getting CMA US certification, stop contemplating and go for it. It is going to have a huge impact on your career, and you will be glad that you have done the certification. Your dream job will be yours much quicker, and you will reach the pinnacle of your career. Enroll for a CMA US certification today! You can also go for degree courses simultaneously. Becoming a CMA US involves a commitment of money and, most of all, time that shouldn’t be taken lightly.
But if you want to pursue a career as a management accountant, the extra effort can pay off. Clearly, becoming a CMA US helps your career in many ways, and taking the US CMA exam is an important step toward achieving that status. Consequently, choosing the right US CMA exam prep is an important step toward passing the CMA US exam. Uplift-Gleim CMA prep is one of the fine-tuned systems which can tremendously help you to pass the US CMA exam at first attempt.
June 2, 2022 | Dr Rathindramohan Mukherjee | Finance, USA CMA
The US CMA certification is a marvelous path to enhance one’s career and stand out from the crowd of conventional applicants vying for accounting job profiles. However, before going head on into the world of US CMA, it is important to understand the skills and basic accounting knowledge a CMA US needs. To get a better understanding of the skill sets required to be a CMA, it is important to understand what a CMA US does.
Here’s a summary of some of the financial and accounting duties that Morgan International says real world US CMAs perform:
· External Financial Reporting
· Planning and Budgeting
· Performance Management
· Cost Management
· Internal Controls
· Profitability Analysis
· Risk Management
· Investment Decision
Therefore, to undertake the US CMA certification, it is essential that the candidate must have completed a bachelor degree.
The skills a CMA needs to augment his pursuit of the much-coveted profiles of US CMA are:
· Knowledge of basic accounting, generally accepted accounting principles (GAAP) and basic tax principles
· Clear theoretical conception and practical applicability of cost accounting
· Good grasp on finance tools, such as discounted cash flow
· A good grounding in economics
· Knowledge in both human capital management and financial capital management
· Well-versed in areas such as capital investment, operational structuring and foundational risk assessments
· Softer skills such as communication and presentation skills, writing, persuasion and interpersonal skills.
If you are serious about the CMA with no accounting experience, or get detached from your study for a prolonged period then you should start by getting up to speed with accounting basics. The idea is to get familiar with basic accounting concepts and principles. It is also a good way to decide whether you like this field enough to take the exam.
Hence, before going to study your US CMA review materials or start taking classes, be sure you have gathered or recapitulate your basic accounting terminologies/concepts for a smooth US CMA journey.
Basic accounting concepts used in the business world cover revenues, expenses, assets, and liabilities. These elements are tracked and recorded in documents including balance sheets, income statements, and cash flow statements. Introduction to accounting frequently identifies assets, liabilities, and capital as the field’s three fundamental concepts.
Assets describe an individual or company’s holdings of financial value. Liabilities are debts and unpaid expenses. Capital describes the money the entity has on hand. Accounting is the process of tracking and recording financial activity. People and businesses use the principles of accounting to assess their financial health and performance.
Accounting also serves as a useful way for people and companies to honor their tax obligations. The history of accounting dates back to ancient times. In the modern world, it is most closely associated with businesses’ financial reporting.
However, everyone can benefit from a knowledge of accounting basics. Here in this article, you can find the basic accounting terms and concepts which will surely benefit you in your US CMA journey.
Simple Accounting Definitions:
1. Accounting Period
An accounting period defines the length of time covered by a financial statement or operation. Examples of commonly used accounting periods include fiscal years, calendar years, and three-month calendar quarters. Some organizations also use monthly periods. Each accounting period covers one complete accounting cycle. An accounting cycle is an eight-step system accountants use to track transactions during a particular period.
2. Accounts Payable
Accounts payable (AP) tracks money owed to creditors. Examples include bank loans, unpaid bills and invoices, debts to suppliers or vendors, and credit card or line of credit debts. Rarely, the term “trade payables” is used in place of “accounts payable.” Accounts payable belong to a larger class of accounting entries known as liabilities.
3. Accounts Receivable
Accounts receivable (AR) tracks the money owed to a person or business by its debtors. It is the functional opposite of accounts payable. Accounts receivable are sometimes called “trade receivables.” In most cases, accounts receivable derive from products or services supplied on credit or without an upfront payment. Accountants track accounts receivable money as assets.
4. Accrual basis accounting
Accrual basis accounting (or simply “accrual accounting”) records revenue- and expense-related items when they first occur. For example, a customer purchases a $2,000 product on credit. Accrual accounting recognizes that $2,000 in revenue on the date of the purchase. The method contrasts with cash basis accounting, which would record the $2,000 in revenue only after the money is actually received. In general, large businesses and publicly traded companies favor accrual accounting. Small businesses and individuals tend to use cash basis accounting.
5. Accruals
Revenues and expenses recognized by a company but not yet recorded in their accounts are known as accruals (ACCR). By definition, accruals occur before an exchange of money resolves the transaction. For example, a company that hired an external consultant would recognize the cost of that consultation in an accrual. That cost would be recognized regardless of whether or not the consultant had invoiced the company for their services.
Accounts payable and accounts receivable are accrual types. Others include accrued costs (costs incurred but not resolved during a particular accounting period) and accrued expenses (expenses or liabilities incurred but not resolved during a particular accounting period).
6. Assets
Assets are items of value, or resources that a business owns or controls. More technical and precise definitions specify two technicalities: First, assets result from past business activities. Second, they will or are expected to generate future economic value. Assets come in many types and classes. Types include current and noncurrent, operating and non-operating, physical, and intangible. Classes include broad categories such as cash and equivalents, equities, commodities, real estate, intellectual property, and fixed income, among others.
7. Balance Sheet
A balance sheet (or “statement of financial position”) is a standard financial statement. It specifies the business’ current state regarding its assets, liabilities, and owners’ equity. Some sources abbreviate the term as BAL SH. Accountants use multiple formats when creating balance sheets: classified, common size, comparative, and vertical balance sheets. Each format presents information as line items that combine to provide a snapshot summary of the company’s financial position.
8. Capital
In common usage, capital (abbreviated “CAP.”) refers to any asset or resource a business can use to generate revenue. A second definition considers capital the level of owner investment in the business. The latter sense of the term adjusts these investments for any gains or losses the owner(s) have already realized.Accountants recognize various subcategories of capital.
Working capital defines the sum that remains after subtracting current liabilities from current assets. Equity capital specifies the money paid into a business by investors in exchange for stock in the company. Debt capital covers money obtained through credit instruments such as loans.
9. Cash Basis Accounting
Cash basis accounting records revenues and expenses when the money involved in each transaction officially changes hands. It contrasts with accrual basis accounting. Accrual accounting recognizes revenues and expenses when they occur without regard to whether the associated funds have been exchanged.
10. Cash Flow
Cash flow (CF) describes the balance of cash that moves into and out of a company during a specified accounting period. Accountants track CF on the cash flow statement.
11. Chart of Accounts
Accountants record financial transactions in a bookkeeping system known as a general ledger. A chart of accounts (COA) is a master list of all accounts in an organization’s general ledger. Five main types of accounts appear in a COA: assets, equity, expenses, liabilities, and revenues.
12. Closing the Books
The informal phrase “closing the books” describes an accountant’s finalization and approval of the bookkeeping data covering a particular accounting period. When an accountant “closes the books,” they endorse the relevant financial records. These records may then be used in official financial reports such as balance sheets and income statements.
13. Credit
Credits are accounting entries that increase liabilities or decrease assets. They are the functional opposite of debits and are positioned to the right side in accounting documents.
14. Debit
Debits are accounting entries that function to increase assets or decrease liabilities. They are the functional opposite of credits and are positioned to the left side in accounting documents.
15. Depreciation
Depreciation (DEPR) applies to a class of assets known as fixed assets. Fixed assets are long-term owned resources of economic value that an organization uses to generate income or wealth. Real estate, equipment, and machinery are common examples. Fixed assets can decline in value. Accountants record those declines as depreciation.
16. Diversification
Diversification describes a risk-management strategy that avoids overexposure to a specific industry or asset class. To achieve diversification, people and organizations spread their capital out across multiple types of financial holdings and economic areas. The term is also widely used in finance and investing.
17. Dividends
In corporate accounting, dividends represent portions of the company’s profits voluntarily paid out to investors. Investors are often paid in cash, but may also be issued stock, real property, or liquidation proceeds. In most cases, dividends follow a regular monthly, quarterly, or annual payment schedule. However, they can also be offered as exceptional one-time bonuses.
18. Double-Entry Bookkeeping
Double-entry systems record each financial transaction twice: once as a credit, and once as a debit. When the sum total of all recorded debits and credits equals zero, the accounting books are considered “balanced.” The system is also known as double-entry accounting. It is a completer and more accurate alternative to single-entry accounting, which records transactions only once. Single-entry systems account exclusively for revenues and expenses. Double-entry systems add assets, liabilities, and equity to the organization’s financial tracking.
19. Equity
At a basic level, equity describes the amount of money that would remain if a business sold all its assets and paid off all its debts. It therefore defines the stake in a company collectively held by its owner(s) and any investors.The term “owner’s equity” covers the stake belonging to the owner(s) of a privately held company. Publicly traded companies are collectively owned by the shareholders who hold its stock. The term “shareholder’s equity” describes their ownership stake.
20. Fixed Cost
A fixed cost (or fixed expense) is a cost that stays the same regardless of increases or decreases in a company’s output or revenues. Examples include rent, employee compensation, and property taxes. The term is sometimes used alongside “operating cost” or “operating expense” (OPEX). OPEXs describe costs that arise from a company’s daily operations. However, these costs can be fixed or variable. Variable costs change as output or revenues change.
21. General Ledger
Businesses and organizations use a system of accounts known as ledgers to record their transactions. The general ledger (GL or G/L) is the master account containing all ledger accounts. It holds a complete record of all transactions taking place within a specified accounting period. Major examples of individual accounts in a general ledger include asset accounts, liability accounts, and equity accounts. Each transaction recorded in a general ledger or one of its sub-accounts is known as a journal entry.
22. Generally Accepted Accounting Principles
Generally accepted accounting principles (GAAP) describe a standard set of accounting practices. GAAP are endorsed by organizations including the Financial Accounting Standards Board and the U.S. Securities and Exchange Commission (SEC), among others. However, GAAP are only one of multiple such standards.
One well-known alternative is International Financial Reporting Standards (IFRS). In the United States, privately held companies are not required to follow GAAP, but many do. However, publicly traded companies whose securities fall under SEC regulations must use GAAP standards.
23. Gross Profit
Gross profit (or gross income) defines the value of the products and services sold by a business before factoring in the cost of goods sold. If the gross profit is a negative number, it is instead called a gross loss. It contrasts with “net profit,” which describes the actual profit earned after accounting for those costs. Gross margin is a related term: It specifies the value of the organization’s net sales, minus the cost of goods sold. Net sales are calculated by correcting gross sales for adjustments such as discounts and allowances.
24. Income Statement
An income statement is a type of financial document businesses generate. It specifies the total revenues earned by the company in a given accounting period, minus all expenses incurred during the same period. Other terms used to describe income statements:
· Earnings statement
· Profit and loss statement
· Statement of financial result(s)
· Statement of operation
Income statements are one of three standard financial statements issued by businesses. The other two include the balance sheet and cash flow statement.
25. Inventory
As used in accounting, inventory describes assets that a company intends to liquidate through sales operations. It includes assets being held for sale, those in the process of being made, and the materials used to make them.
26. Liability
A liability (LIAB) occurs when an individual or business owes money to another person or organization. Bank loans and credit card debts are common examples of liabilities. Accountants also distinguish between current and long-term liabilities. Current liabilities are liabilities due within one year of a financial statement’s date. Long-term liabilities have due dates of more than one year.
The term also appears in a type of business structure known as a limited liability company (LLC). LLC structures allow business owners to separate their personal finances from the company’s finances. As such, owners cannot be held personally liable for debts incurred solely by the company.
27. Liquidity
In accounting, liquidity describes the relative ease with which an asset can be sold for cash. Assets that can easily be converted into cash are known as liquid assets. Accounts receivable, securities, and money market instruments are all common examples of liquid assets.
28. Net Profit
Net profit describes the amount of money left over after subtracting the cost of taxes and goods sold from the total value of all products or services sold during a given accounting period. It is also known as net income. If the net profit is a negative number, it is called net loss. The related term “net margin” refers to describing net profit as a ratio of a company’s total revenues. Net profit contrasts with gross profit. Gross profit simply describes the total value of sales in a given accounting period without adjusting for their costs.
29. On Credit
Accountants track partial payments on debts and liabilities using the term “on credit” (or “on account”). Both versions of the term describe products or services sold to customers without receiving upfront payment.
30. Overhead
Overhead (O/H) costs describe expenses necessary to sustain business operations that do not directly contribute to a company’s products or services. Examples include rent, marketing and advertising costs, insurance, and administrative costs. Businesses must account for overhead carefully, as it has a significant impact on price-point decisions regarding a company’s products and services. Overhead costs must be recouped through revenues.
31. Payroll
Tracking operations that record, administrate, and analyze the compensation paid to employees are collectively known as payroll accounting. Payroll also includes fringe benefits distributed to employees and income taxes withheld from their paychecks.
32. Return on Investment
Usually expressed as a percentage, return on investment (ROI) describes the level of profit or loss generated by an investment. Accountants calculate ROI by dividing the net profit of an investment by its cost, then multiplying by 100 to generate a percentage. For example, consider a person who invests $10,000 in a company’s stock, then sells that stock for $12,000. The exchange would generate an ROI of 20%. When an investor incurs a loss, the ROI is expressed as a negative number.
33. Revenue
Revenue (REV) describes the income a business earns by selling products and/or services associated with its main operations. For example, a restaurant’s revenue covers all food and beverage sales. It would not cover additional sources of income, such as the liquidation of equipment or real estate owned by the business. The terms “revenue” and “sales” can be synonymous. For example, revenue is used to establish the datapoint comprising the “sales” component of a price-to-sales calculation.
Single-Entry Bookkeeping: Single-entry bookkeeping records all revenues and expenses with a single entry in the company’s books. It is also known as single-entry accounting. Single-entry systems are simplified financial tracking methods often used exclusively by small businesses. Transactions are recorded in a document known as a “cash book.” It contrasts with the more precise and accurate double-entry accounting method. Double-entry accounting records all transactions twice: once as a debit, and once as a credit.
34. Trial Balance
A trial balance is a report of the balances of all general ledger accounts at a point in time. Accountants prepare or generate trial balances at the conclusion of a reporting period to ensure all accounts and balances add up properly. In professional practice, trial balances function like test-runs for an official balance sheet.
35. Variable Cost
Variable costs are expenses that can change depending on the volume of goods produced or sold by a company. For example, a manufacturer would incur higher costs if it doubled its product output. Companies may also face higher tax rates as their sales and profits rise. These are both examples of variable costs. By comparison, fixed costs remain the same regardless of production output or sales volume. Examples of fixed costs include rent, wages, and salaries.
Summary
The world of knowledge is infinite, which means that there is no end to learning, unlearning and relearning new skills that are in sync with the changing times. The same is in the case of accounting, where managerial accountants need to have varied basic accounting skills and need to keep themselves abreast of the new developments in the domain.
However, there are certain jargon, buzzwords and basic accounting skills that are considered as a prerequisite to becoming a successful management accountant. Some of the basic accounting terms required to make your US CMA journey better has been discussed here. However, going through the basic accounting books are highly recommended.
To make your US CMA journey smooth, Uplift Professionals, an IMA approved premier training institute of US CMA has introduced special orientation classes on basic accounting for its students apart from the regular US CMA classes as an add-on at no extra cost. This is going to be highly beneficial for students who don’t have basic accounting degree, the working professionals who are not in touch with study for prolonged period and obviously to students who are weak in basic accounting concepts.
The US CMA course or certification is offered by IMA® (Institute of Management Accountants) of USA, which is the worldwide association of accountants and financial professionals in business. It was founded in 1919, having 90,000+ members and global reach of 140 countries through 300 professional and student chapters.
CMA® (Certified Management Accountant) certification has been the global benchmark for management accountants and financial professionals. You can now get a professional certification from the USA within 12 – 18 months.
The CMA certification is well recognized by all the MNCs, Big 4 audit firms, US Banks, Consulting firms and other BFSI companies having offices in India. This certification from IMA® (Institute of Management Accountants) is considered to be on par with the Indian CMA by most employers.
CMA certified professionals are observed to get a career and earnings premium. In the US, median total compensation is 28% higher for CMAs over non certified peers. Globally, it’s 50% higher.
If you’re planning for your US CMA course credential, you should know the CMA exam dates, schedule, and deadlines. Plus, it’s essential to understand how to register and manage your time.
1. Steps to become a US CMA
1. Foundational knowledge of economics, basic statistics, and financial accounting
2. Pass both CMA exam parts
3. Bachelor’s degree from an accredited college or university
4. Any major, no course distribution requirements
5. Most CMA candidates hold a degree in accounting or finance
6. May be earned within 7 years of passing US CMA exam parts
7. Two years of professional work experience
8. May be fulfilled within 7 years of passing CMA exam parts
9. Active membership in IMA
2. Requirements to maintain US CMA certification
1. 30 hours of CPE annually
2. CPE must include 2 hours of ethics training
3. Maintain active IMA membership
3. Which CMA part one should take first?
It is to be noted, you do not have to take the US CMA course exam parts 1 and 2 in order. It’s completely up to you. For example, you can choose to take Part 2 first, if you want. So, how do you decide? The first step is to know what content each part contains. If one part seems significantly easier for you, then you can choose to tackle that one first. There really isn’t a right or wrong way, since in the end, you need to complete and pass both parts to get your certification.
4. The IMA breaks it down like this:
Part 1: Financial Planning, Performance, and Analytics
15% External Financial Reporting Decisions
20% Planning, Budgeting, and Forecasting
20% Performance Management
15% Cost Management
15% Internal Controls
15% Technology and Analytics
Many candidates find Part 1 to be more difficult since it covers more topics and a wider array of subject matter. You can read more about CMA Exam Part 2 difficulty compared to Part 1 if you want to learn more.
In general, Part 2 has fewer subjects and units, so many people do consider it easier. Personally, I was more frustrated with Part 2. It seems easier when you look at it, but the questions were not as straightforward as Part 1.
Part 2: Strategic Financial Management
20% Financial Statement Analysis
20% Corporate Finance
25% Decision Analysis
10% Risk Management
10% Investment Decisions
15% Professional Ethics
You will have an average of 12-18 months to complete each part, with 3 years to complete both. Many people sit for the exams in order, taking Part 1 first since it seems the most logical.
However, some people think Part 2 will be easier for them, so they register to take it first and get it out of the way. The choice is yours. If you want to review the material a bit more and then make a decision, that is one option.
1. Each exam part is four hours in length
2. 100 multiple choice questions, followed by two 30-minute essay scenarios
3. Exam administered at Prometric testing facilities across India.
5. Overview of 2022 US CMA exam dates
You need to understand the US CMA course exam schedule to register for your exam dates. Maybe you’ve been studying for weeks (or even months), and you finally feel confident enough to book your CPA exam date in 2022. However, it’s not possible to take the exam whenever you wish.
First, you must schedule your CMA exam within one of the testing windows. The good news is that we already know the CMA exam dates for 2022, so you have plenty of time to prepare. Furthermore, understanding the timeframe for the testing windows is essential to your CMA exam schedule.
The IMA currently offers three testing windows each year for the CMA accounting exam dates, as follows:
CMA Testing Window
First Exam Date
Last Exam Date
Last Date to Register
January/February
Jan. 1, 2022
Feb. 28, 2022
Feb. 15, 2022
May/June
May 1, 2022
June 30, 2022
June 15, 2022
September/October
Sept. 1, 2022
Oct. 31, 2022
Oct. 15, 2022
Additionally, the dates are the same for each section of the two-part exam. Therefore, the CMA exam part 2 dates are identical to the part 1 dates. If you miss your testing window, you’ll have more hassles than just needing to reschedule. After all, it could throw your study plan off by months. Missing a testing window isn’t the end of the world, but it’s always better to avoid it when possible. Since the testing windows are always the same, you can avoid this problem by being proactive about your planning.
6. Scheduling the Exam with Prometric Centre
Upon selecting the appropriate test window, next comes the booking of your exam slot. Prometric offers convenient, online, anywhere, anytime scheduling and registration with global contact center support. Using the Prometric website, test takers can quickly, easily and conveniently register or schedule an exam online anytime they wish.
Online test scheduling allows test takers to search for the exam they want to take, locate a test center near them, select a time and date to test and book the exam, all from the Prometric website. You will schedule your test with Prometric.
However, you can either take the CMA at a Prometric test center near you, or you can choose online remote proctoring from your own computer at home. If you choose to take it in-person, plan carefully, since planning potential travel arrangements is also essential when you schedule a test. You can also use the same Prometric dashboard to reschedule or cancel your test and to confirm your test once you have scheduled it.
Next, in order to reserve a space at the Prometric exam site or to reserve a remote proctored time slot, you will need an authorization number. It is advised that you send in your registration around 6 weeks before the intended date of your exam to ensure everything is processed on time. Keep in mind that many people are trying to register, and spots may be limited, especially at more popular testing centers.
Finally, remember that you must be an IMA member before you register for the exam.
Now that you know the IMA CMA exam dates, let’s look at some tips for scheduling your appointment.
7. Tips related to scheduling of US CMA Exam
If possible, schedule your exam in the first month of a testing window (i.e., Jan, May, Sep). This gives you more time in case you need to reschedule. This could save you money in the long run, where rescheduling fees are involved.
Candidates are allowed to reschedule their exams for free within the same testing window as long as their test date is still 30 days away. For example, if you run out of studying time, you can still postpone your January exam to February. If you schedule the exam in February, you can’t extend it to May, and instead must pay in full for your next exam. Of course, no one likes to think they will need to reschedule their exam, but you never know what will happen. Putting yourself in the position of having the free rescheduling time is a smart move, just in case.
Top US CMA Exam tips – the preparation strategy [ 2021 Update] :- The most important part is the study/preparation in a guided manner having a proper schedule. Eventually, you will be adapted to the syllabus and format of the US CMA exam. But the ultimate aim is to clear the exam in shorter duration and obviously at first attempt.…continue reading
8. Other Important CMA Exam Dates IMA
In addition to knowing the exam windows, you should be aware of a few other restrictions for scheduling your US CMA course exam.
1. All exam appointments must be made with Prometric at least 72 hours before your exam date.
2. If you need to cancel an exam appointment, you must do so at least 72 hours before your date, according to Prometric’s policies.
3. Exam appointments must be scheduled within the same testing window. For example, if your original appointment was in the January/February window, you can’t reschedule for the May/June window.
9. Time Management
It is of utmost importance to understand your “CMA clock.” You have to complete all steps of the certification process within a certain timeline. Please note that the countdown on your CMA exam clock starts the day you pay the CMA entrance fee. On this date, you’re officially “in” and your work to become a CMA begins. Specifically, you must register for the exam within 12 months of entering the CMA program and pass both parts of the CMA exam within 3 years. Therefore, it is important to be mindful of your window and not to allow these dates to pass you by.
If you run down your CMA exam clock, you must start all over again by re-paying the entrance fee. To manage and track your CMA exam clock, most people keep a CMA calendar. You can also work this CMA exam calendar into your study program to help you stay on track.
10. Example of US CMA Exam Scheduler- At a Glance
Let’s take January 1 ,2022 as the day of commencement and to wrap up the whole thing within 6 months.
1. Apply for IMA membership and pay the entrance fee – January 2022
2. Pick a CMA review course and start studying – January 2022
3. Pick your CMA test exam dates and register for the CMA exam – around mid-March 2022
4. Sit for the exam (Part 1) – May 2022
5. Sit for the exam (Part 2) – June 2022
6. Pass the 2 parts and get your CMA certification.
You can make your personalized roadmap to US CMA based on the above example accordingly.
11. US CMA Exam Score Release Date 2022
Your CMA exam result date is based on a formula depending on your test window. They say the waiting is truly the hardest part. And while this may be true, you can do some value-added things while you wait.
Results come 6 weeks from the last day of the month you took the test, plus or minus a day.
Example:
1. If you take the exam on January 30, you will know the date sometime in the middle of March.
2. If you take the exam a few weeks earlier on January 2, your CMA exam result is released the same day as the above. Why? Well, you’ll wait 6 weeks after the end of the month you tested.
So, in this example, if you choose any CMA January 2022 exam date, you won’t get your results until March. The results will be updated online in your IMA profile almost immediately from this date. Furthermore, Prometric will email you a performance report about 14 days after your exam.
12. Stats from IMA regarding US CMA
1. The CMA has a 45% pass rate globally
2. 5,000 CMAs granted each year on average
3. 100,000 CMAs awarded to date
13. IMA: Important Updates for IMA Members and CMA candidates
A. Testing Center Update
Updated on April 27, 2022
As we continue to monitor the global COVID-19 pandemic, our top priority remains the health and safety of all CMA candidates and our staff. Given the current outlook, please note the following schedule and process changes:
B. Prometric testing centers are open
Most Prometric testing centers around the world are open, many at full capacity. Review the complete list of open Prometric testing centers. Note: This list is subject to change.
C. Update to mask/exposure policy:
In light of recent trends and mask mandate changes around the world, along with updated guidance from leading world health organizations, effective May 1, Prometric will not require masks to be worn in testing centers. Prometric, however, will continue to allow and encourage the wearing of masks regardless of mandate or vaccination status. Please note: If masks are mandated in a specific market by local government and/or health officials, then Prometric will follow that guidance in testing centers as well.
In addition, regarding COVID-19 exposure, if a candidate has tested positive for COVID-19 or reports exposure to someone who has COVID-19, Prometric asks that they wait five days and are symptom free prior to testing.
D. Proof of vaccination
In an effort to comply with regional and local/government guidance and mandates, some Prometric testing centers are now requiring candidates to present proof of COVID-19 vaccination at check-in.
Prometric maintains a list of test sites globally that require proof of vaccination in order to test. Candidates testing at these identified sites should be prepared to present the documentation provided to them by their healthcare provider at the time of vaccination. Prometric will update this list on a regular basis.
Candidates should check for additional details by visiting Prometric’s COVID update page.
Have more questions regarding testing sites and COVID-19? Go to the Prometric FAQ page now.
14. What to expect on test day?
This video will provide you with a detailed overview of what to expect during your visit to a Prometric test center.
A. Prometric has resumed biometric procedures
Prometric has reinstated its biometric procedures, specifically fingerprint and ID scans. Out of an abundance of caution, all test takers will be required to use hand sanitizer before using any fingerprint scanners, and Prometric staff will wipe down devices with cleaner after each use to help reduce any risk of transmission. Prometric test center staff are trained on how to assist test takers in using fingerprint and ID scans from an appropriate distance. More information about these policies can be found on the enhanced test center procedures page on Prometric’s website.
B.Remote Testing Option
CMA candidates now have the option of taking their exams either in-person at a Prometric test center or remotely using Prometric’s ProProctor™ service. Certain technology and space requirements apply. Please see the Remote Testing webpage for complete details.
C. Education Transcript Submission
Change to submission process for education transcripts
CMA candidates must submit all required educational transcripts to ICMA electronically on a temporary basis. Please email all documents in PDF format and make sure to include your IMA membership number. Send to:
If you have already submitted your educational documents by mail, please resubmit a scanned copy of your documents to the above email address. To register to take the CMA exam, please visit the exam registration page.
15. Summary
By now, after browsing this write up, you being a CMA US aspirant, believed to be well acquainted with the CMA US course and the procedures of registration and booking of the CMA US exam through prometric centers. Till available updates are provided to help you take steps judiciously to complete the entire process. Last but not the least, everything depends on the status of your preparation and preparation brings confidence and it is the confidence that will pave your way to become a CMA US in the long run.
Select the Premier Institute for becoming a CMA US at First Attempt
Uplift Pro is an official partner of the Institute of Management Accountants (IMA), USA, for providing 360-degree study support for the prestigious and globally demanded US CMA certification.
Salient Features of the US CMA Course
1. US CMA course is a worldwide demanded qualification in Finance.
2.The US CMA course has just 2 parts.
3. US CMA exams can be cleared in 7 to 9 months time.
4. Exams are conducted online at the prometric centers.
5.Typically, the US CMA exams have 75% of the questions as MCQs (objective type) and the rests are Essay questions.
6. Pass percentage of US CMA course is globally near-about 50%, Uplift Pro has a pass percentage of more than 70%. We are one the smartest US CMA institutes in India.
7. Along with providing CMA Study Support, we uplift the soft skills of our students, if required, and also help them in getting placed in leading companies in and outside India.
8. US CMA course helps professionals to build a career across the globe.
9. Uplift Pro is a valued CMA study center recognized by the IMA US and Gleim Accounting for training students for the US CMA course. Students of Uplift Pro enjoy special discounts in IMA fees.
10. A US CMA is respected worldwide to be the decision maker in the industry and formulate robust finance and accounting strategies.
11. Uplift Pro’s US CMA live online classes are scheduled and designed in such a way you can avail them from your home computer after your regular working hours.
12. Uplift Pro provides “Till you pass” guarantee to every student which means once you become our student you may attend our live online classes at no extra cost until you pass.
13. In case you miss a class, you get the recording of it the very next morning.
14. You get 1:1 personal support from our experienced CMA certified faculties in class and out of the class in dedicated WhatsApp study groups.
Request for Live Demo class / contact at +91-8787088850 to book your seats now
