What is the CGMA designation?
The Chartered Global Management Accountant (CGMA) is a global management accounting designation that recognises the unique role played by men and women at organisations around the world who combine accounting and financial expertise with strategic insight to guide better business decisions. Additionally, it recognises the management accounting experience and expertise of accountants in academia.
Created in 2012 by the American Institute of Certified Public Accountants (AICPA) and The Chartered Institute of Management Accountants (CIMA) the CGMA designation recognises the competencies and expertise of management accountants who are leading the world’s most successful organisations, and teaching at universities around the world, preparing the management accounting leaders of tomorrow. It demonstrates management accounting expertise in such areas as leading strategically with management to make more informed decisions; helping organisations manage change, risk and uncertainty; protecting corporate assets; and promoting operational efficiency and effectiveness.
What is management accounting?
Management accountants combine accounting and financial expertise with strategic insight to guide better business decisions. They understand both financial and non-financial data and continually integrate information from across an enterprise to help achieve organisational objectives.
Management accountants are business professionals at the heart of decision-making, who “connect the dots” and recognise how the different parts of the business need to come together to create value. They help their colleagues understand income and costs, and risks and opportunities. Their understanding and experience of business goes well beyond financial accounting; they are trained to monitor and oversee all performance and focus on the organisation’s future prospects by using a wide range of information. Some management accountants work in the finance department. Many put their broader business training to use across the business, culminating in board roles such as chairman and CEO.
Who are CGMA designation holders?
CGMA designation holders are business strategists who apply non-financial, qualitative information along with financial analysis to understand all aspects of business. CGMA professionals may work in finance, or may put their broader business training to use across the organisation, often in the roles of Board Director, Chairman, CEO or CFO. CGMA holders are on the front lines of business and are responsible for helping businesses in a number of ways, including:
- developing business strategy;
- protecting corporate assets;
- supporting the management of risk and uncertainty;
- communicating with key stakeholders;
- managing relationships – internal and external;
- assuring high organisational integrity; and
- making sound investment choices.
CGMAs are characterised by their discipline and commitment to sharpening their skills and adhering to a code of conduct and ethics. They understand and are committed to helping organisations correlate and understand financial and non-financial information across multiple functions so the business can maintain growth and perform more efficiently.
CGMA designation holders are trusted to guide critical business decisions and ensure strong business performance. CGMA designation holders also include the educators who conduct research in management accounting and related disciplines and accounting faculty who meet certain experience requirements. CGMAs in academia are recognised for their contributions to the profession, their research and industry experience, and for preparing students for careers in management accounting.
What does the establishment of the CGMA designation and the AICPA-CIMA joint venture mean for me as a professional?
Obtaining the CGMA designation means you are now part of a global network of distinguished finance professionals and academics who have advanced proficiency in finance, operations, strategy and management. This enhanced network creates a forum for promoting the value that management accountants can add to an organisation, boosting your career prospects throughout the world. CGMA designation holders are eligible for a number of benefits, including the cgma.org website, which hosts numerous AICPA-CIMA jointly-developed resources and content. In addition, by establishing the CGMA designation, the AICPA and CIMA are providing an additional way for members in business, industry, government and academia to further showcase their expertise in management accounting.
I am already a U.S. CPA, why should I consider becoming a CGMA designation holder?
The CGMA designation offers an additional opportunity for U.S. CPAs to distinguish themselves and demonstrate their commitment to sharpening their management accounting skill set. The CPA, CGMA designation is a powerful combination. It proves you have the skills and knowledge tested in the Uniform CPA Examination. It further acknowledges your management accounting expertise and qualifying experience. The designation provides global recognition for your contributions to your organisation's success and acknowledges your influence in preparing the future leaders of the profession.
Why did the AICPA and CIMA create the CGMA designation?
The CGMA designation was created to increase the recognition of management accounting worldwide, to complement the U.S. CPA and help AICPA and CIMA members stand out as leading management accountants. CGMA designation holders benefit from the enhanced reputation and community of their CGMA peers and further develop their competencies with the publications, resources and tools available on cgma.org.
How much does the CGMA designation cost?
For AICPA members who are eligible, registration for the CGMA designation is $170 per year. Dual state CPA society-AICPA members receive a $50 saving, making the cost $120 per year. CIMA members do not incur any extra expense for the CGMA designation.