What is the CGMA designation?
The Chartered Global Management Accountant (CGMA) is a new global management accounting designation that recognises the unique role played by men and women at organisations around the world who are guiding critical business decisions and driving strong business performance.
Created through a joint venture of the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA), the CGMA elevates management accounting and recognises the competencies and expertise of management accountants who are leading the world’s most successful organizations and providing employers with the best professional management accounting talent to drive sustainable business success. 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. In addition, the CGMA advances management accounting while supporting and growing the U.S. CPA and the global reach of CIMA.
What is management accounting?
Management accounting combines financial accounting—reporting financial performance, understanding the framework of financial laws, standards and regulations and providing a compliance perspective—with additional management skills that help drive business decisions, including managing business opportunities, providing a framework of solutions and best practices and guiding strategic decisions.
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. Management accountants add value by supporting and driving the right decisions in all areas of the organisation to achieve sustainable success for the business. They help their colleagues understand income and costs, and risks and opportunities. Management accountants have an understanding and experience of business that goes well beyond financial accounting. They are trained to monitor and oversee all performance and focus on the organisation’s future prospects and past performance 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 CGMAs?
CGMAs are business strategists who apply non-financial, qualitative information along with financial analysis to understand all aspects of business. CGMAs may work in finance, or may put their broader business training to use across the organization, often in the roles of Board Director, Chairman, CEO or CFO. CGMAs 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 organizational 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. CGMAs are trusted to guide critical business decisions and ensure strong business performance.
What does the establishment of the CGMA and the AICPA-CIMA joint venture mean for me as a professional?
Earning the CGMA means you are now part of an enhanced network of finance professionals. The AICPA-CIMA joint venture creates a forum for promoting the value that management accountants can add to an organisation, boosting your career prospects throughout the world. CGMAs 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 U.S. CPAs in business, industry and government to further showcase their expertise in management accounting.
I am already a U.S. CPA, why should I consider becoming a CGMA?
The CGMA offers an additional opportunity for U.S. CPAs to distinguish themselves and demonstrate their commitment to sharpening their management accounting skillset. The CPA,CGMA is a powerful combination. It proves you have the skills and knowledge tested in the U.S. Uniform CPA Examination. It further acknowledges your management accounting expertise and qualifying experience and recognises you globally for your contributions to your organisation's success.
Why do CIMA members need a new set of letters?
The ACMA and FCMA are globally recognised (we have members in 169 countries) but we have been underrepresented in the US. By joining with the AICPA we will be able to harness their expertise and their membership to push management accountancy in an exciting new direction. To maximise this relationship and not to favour one organisation over the other, a new set of designatory letters were defined. CIMA members do not have to use the letters but when you do, you demonstrate your participation in this exciting new designation for management accounting.
Why did the AICPA and CIMA create the CGMA?
The CGMA was created to increase the recognition of management accounting worldwide, to complement the U.S. CPA and help U.S. CPAs and CIMA members stand out as leading management accountants. CGMAs benefit from the enhanced reputation and community of their CGMA peers and further develop their careers with the publications, resources and tools available on cmga.org.
How much does the CGMA cost?
The CGMA is free for CIMA members. For AICPA members who are eligible, starting in July 2012, registration for the CGMA is $150 per year. Dual state CPA society-AICPA members receive a $50 savings, making the cost $100 per year.