How To Become A Managerial Accountant

June 12, 2012 · Posted in Accounting · Comment 

A managerial CPA is not be similar to other financial advisers. Here are a few distinctions between all of them.

Typical accountants are essentially back looking for the reason that they look at information that has already happened. Managerial accountants will be more forward looking in that they make base their business actions on the future by using a number of tools. This is the primary difference between management accountants and traditional accountants.

Management accountants therefore not only need to be thorough in accounting principles, they also need to have sufficient analytical ability and decision making ability, to be able to make projections.

Considering that a management accountant’s job is that much more than even a CPA’s (Certified Public Accountant’s) and that they earn on average 22% more than accountants in a similar capacity in other fields, the requirements to become a managerial accountant is fairly low.

In fact, there is no certification needed to become a managerial accountant too, although being certified opens more doors and enables you to get better jobs.

All you need for a certificate in management accounting is a BA. Sometimes you don’t even need this if you have enough on the job training.

What you BA is in is inconsequential.

However, considering the difficulty level of the examination, a bachelor’s degree with a strong emphasis on accounting principles not only makes it much easier, it is becoming almost a must have.

The only other requirement to sit for the CMA examination is that the candidate has two years of working experience in management accounting or financial management. It is however not required that they are in a position to make financial projections.

For those who are lacking a BA, you can just take the GMAT or GRE. You will then be able to take the CMA exam (as long as you are at least within the top 50th percentile).

The examination is a two part one and is configured in such a manner as to test the candidates understanding of topics like budgeting, forecasting, planning, control, ethics, performance management, risk management, investment decisions and financial statement analysis.

Even though it doesn’t take too much to be able to take the CMA exam, the test itself is brutal. Even having a BA in Accounting accompanied by an MBA doesn’t ensure that you will be passing the exam without a lot of preparation.

Becoming a member of the IMA or Institute of Management Accountants is necessary as well. After paying a yearly fee, you should give them all of your education and experience information prior to paying for the exam itself.

To summarize, a management accountant is more manager than accounting, as you need to be able to make decisions about business based on financials. So even if you aren’t a CMA, you can obtain a position as a management accountant.

However, as mentioned before, getting certified is always a good idea.

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