Can anybody tell me the value of CMA (Certified Management Accountant) or CFM (Certified Financial Manager) certification? These two certifications are offered by the Institute of Certified Management Accountants of the United States (http://www.imanet.org/ima/index.asp). Basically I need to know about the job prospects, how an employer evaluates the certifications. Thanks MFH MBA Candidate Touro
Looks good on a resume' but that is about it. In most business environments it is the CPA or nothing. Just my 2 cents worth from 25 years in the world of business.
CMA and CFM Being a CPA myself, I really don't see the value of CMA and CFM. Many people don't even know what CMA and CFM are.
Several years ago, I completed a statewide study of a particular industry certification to assess employer perceptions of its value towards hiring, promotions, and salary. Over 100 survey responses from hiring managers and HR professionals were received and analyzed from a random population of all companies in the state potentially hiring individuals holding that particular certification. I was interested in the topic because I held several certifications myself and wanted to know if they had any value to potential employers. Although my study was limited to one certification, the study required extensive research into credentialing, certification, and licensing practices as a whole across many industry occupations. I became somewhat of an expert on the topic and my research became controversial and highly sought after at the time. Because of these complications, I became involved with politics instead of my work and was forced to drop from the graduate program. Getting back to the topic at hand, basically I found that certification holders generally had a significant edge over non-certified candidates in being hired for entry level and experienced positions. Although certification did not have any significant overall impact towards salary or promotions, small and medium sized companies were more likely to award a salary increase or give a promotion based on certification than large companies. Other interesting data from the survey indicated that employer awareness and understanding of this certification was not as high as generally believed, and that most employers valued formal education, experience, and internal training much more than professional certifications. However, over 90% of the employers surveyed indicated that they would pay the costs involved with any employee who wished to become certified. Since this study was completed, I have maintained an interest in the topic through casual reading and research although I have not conducted any additional formal studies. Although it is possible and likely that measurable employer perceptions have changed over a time, my personal viewpoint is that partly because of the proliferation of certification programs, the value of most professional certifications to employers has lessened overall, although this cannot be proved without another study. Personally, I think that professional certifications are helpful, but are best obtained during employment to achieve the highest return in terms of cost effectiveness and employer recognition. Hope that helps
I think employers award more to CPAs than non-CPAs. Though many employers don't know what the CMA or CFM designations are, don't let that stop you from getting those certifications. The AICPA is bigger and has more resources than the Institute of Management Accountants (IMA). As a result, the AICPA's political and marketing power is greater than that of the IMA. CPA's feel threatened by accountants who are certified in other accounting and business areas. I'm not a CPA. However, I have a Bachelor's in accounting and an MBA. I'm also a Certified Business Manager (CBM) and a member of the IMA. I take continuing education classes to keep current w/ the accounting profession. Remember, due to the many corporate scandals being exposed and due to alleged collusion by CPAs, the CPA designation has been tarnished. Nevertheless, the CPA designation is certainly worth achieving. It is another indicator of a professional.
Certain designations such as the CPA are accepted widely in industry and are certainly worth achieving under any circumstances. Even non-accoutants are aware of the CPA designation. However, of the other certifications besides the CPA in the accounting/financial field, how many even approach the CPA in prestidge? Many occupations have a single flagship certification desgination, but for every defacto standard designation, there is a proliferation of others. It is for the lessor known designations that questions arise as to thier worth.
I am not sure if the value of the certification matters, but it does look good on a business card I once had a boss who said any initials behind your name is good. But if you are going to be a CMA why not a CPA. Do you know if the test is in the same catagory as the CPA exam? I am a CBM (Certified Business Manager) and am currently studying for the CIA (Certified Internal Auditor) and plan on becoming a CFE (Certified Fraud Examiner) in addition to getting my MBA. I believe it's all how you market yourself.
MFH - the whole area of certifications has been an interesting topic to me for some time. Rather than ask "what do employers think?", I like to turn the question around "what will I learn by studying for and passing this exam?". If the process of studying improve your knowledge of a field, the certification may be valuable, even if an employer doesn't explicitly pay more for it. Regards - Andy
Chris, so far I knew, for CPA I have to work for an audit company (under a CPA) for 2 years. I have a full time job... I can't probably do that... Or am I wrong? Does this requirement exists?
Actually I believe it's either or. You can work for a public firm or work under a CPA in an accounting environment. My boss did not work for a public firm but did work in a bank finance department. However, she had to document alot to prove that she had the knowledge and requirments. The CMA has similar work requirements, From the website Candidates for the CMA or CFM Certificate must complete the following: Two continuous years of professional experience in management accounting and/or financial management. This requirement may be completed prior to or within seven years of passing the examination. Teachers can meet this requirement if the majority of their course load is in accounting and corporate financial management courses above the principles level. Professional experience is expected to be gained in full-time employment. However, continuous part-time positions of 20 hours per week meeting the definition of qualified experience will count toward this requirement at a rate of one year of experience for every two years of part-time employment. Qualifying experience consists of the following: Positions requiring judgments regularly made employing the principles of management accounting and financial management. Such employment includes financial analysis, budget preparation, management information systems analysis, financial management, management accounting, and auditing in government, finance or industry; management consulting; auditing in public accounting; research, teaching or consulting related to management accounting or financial management. Non-qualifying experience consists of the following: Employment requiring the occasional application of management accounting principles such as in computer operations, sales and marketing, manufacturing, engineering, personnel, and general management will not satisfy this requirement. Internships and trainee, clerical, or non-technical positions do not provide appropriate experience to fulfill this requirement.
Certified Business Manager Man... There are so many Certified Business Manager in this forum, and I almost forgot I am one myself. What's the value of it anyway? I think I might have wasted $399 for it (under grandfather clause). But again, only time will tell.
Not a waste yet. I am taking part 4 of the CIA (Certified Internal Auditor) exam in Nov. On of the perks is that if your are a CPA CFSA etc, you can get professional recognition for part 4 (meaning you would not have to take that part). I faxed over my CBM certificate to the IIA (Institute of Internal Auditors) to see if the CBM qualified. I was told not at this time but the designation is being considered for recognition in 2005. So it seems that someone (at least the IIA) is starting to considered it a worthy designation.
CPA is a license, the others are not. It is that simple. One may not practice public accounting without a license. NY: http://www.op.nysed.gov/pubaccb.htm OH: http://www.state.oh.us/acc/lawsect.html MD: http://www.dllr.state.md.us/license/law/cpalaw.htm FL : http://www.state.oh.us/acc/investgn.html Just as one cannot practice law without having passed the relevent bar examination leading to licensure one may not practice public accounting simply by deciding to open an accounting office to the public. Public accounting differs from book keeping and accounting in that the CPA provides a report that draws conclusions or produces a report to which he or she attests. So if I want a licensed CPA I cannot hire someone with a million certifications should he not be a CPA. The CPA 'designation' as it has been called is no more maligned than lawyers and I would certainly trust a CPA more that I would trust a lawyer. Ask a CPA the meaning of the word IS and he can tell you. Ask a lawyer, heck a specific lawyer named Bill, and you get nonsense. CMA, CIA, FOAD... whatever you wish to add after your name is not a license and hiring managers, at least the ones I know, won't be the least bit impressed. Most certifications these days are not worth the paper on which they are printed. Show me a license from the state, now that is a different story.
1. The 20 hours of CPE credits that CBMs are required to fulfill every year are a good investment. I find the Havard Business School articles quite informative and educational. 2. On a different subject - Not all CPAs are licensed by the state where they passed the exam. I know someone who passed the exam in Georgia. However, this person did not meet Georgia's work experience requirements. As a result, this person is not a CPA.
I think I would like to address the somewhat confusing responses to the CPA being a license or a certification. Recently, I went to the Web site of the professional organization that develops and grades the CPA exam, the AICPA. Because the AICPA defines the body of knowledge for the profession as a whole and develops a uniform examination to evaluate the competency of accountants, as accepted by the public (in this case, State Boards of Accountancy), the examination can be considered a certification exam. As far as I know, the examination was not developed specifically for any state's use, but for the entire profession. The State boards of accountancy, use the CPA examination as developed by the AICPA and further define their own requirements that differ from state to state in the form of experience, education, ethics, etc. The states can then issue a CPA certificate, which then functions as a state license. So technically the CPA is a license based largely on a certification exam. If it were strictly a state license, all the requirements (including the exam) would be defined by the states and would possibly differ from state to state. (governments usually do not define the body of knowledge for professions) In this case, the CPA exam functions as both a certification and a license for the profession of accounting. Because of its longstanding and wide acceptance as the standard certification/license for the profession, the CPA is the yardstick by which all other accounting certification or licensing credentials are measured. FYI, I am not an accountant, and don't know the entire history of the CPA, but this is the way I understand it.
