Chartered Global Management Accountant (CGMA) | Complete Guide
What is a CGMA?
A Chartered Global Management Accountant (CGMA) is a professional management accountant designation that represents expertise in finance, operations, strategy, and management. It aims to combine financial expertise with strategic management skills. Chartered Global Management Accountant was launched in the year 2012 jointly by the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA) to meet the demand of growing employers of hiring financial professionals with strategic skills. The CGMA is the most widely held management accounting designation globally, with over 137,000 credential holders.
Key Takeaways
- A Chartered Global Management Accountant (CGMA) is a professional designation recognized globally and is jointly offered by the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).
- CGMA is a certification that demonstrates a person’s expertise and knowledge in the field of finance, operation, management, and strategy.
- CGMA certification aims to develop valuable human assets to meet the demand for an expanded skillset in an individual.
- CGMA certification ensures professional integrity and credibility as outlined by the AICPA and CIMA. This makes CGMA the most trusted and reputed designation in the world.
- An average salary offered to a CGMA is $ 51,826 per year as per https://www.ais-cpa.com/cgma-vs-cma-certification/
- CGMA certificate holders can enjoy diversified job roles and can become CFOs, CEOs, consultants, entrepreneurs, firm partners, and more.
Table of Content
- Benefits of CGMA Certification
- CGMA Eligibility
- Salary of a CGMA
- CGMA Exam Structure
- CGMA Exam Tips
- CGMA Exam Resources
- Conclusion
- Chartered Global Management Accountant (CGMA) – FAQs
Benefits of CGMA Certification
CGMA Certification offers benefits like:
1. Global Recognition: CGMA certification is offered by the world’s two leading accountancy organizations- the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA) and hence enjoys worldwide recognition and popularity. It represents individual expertise and experience in management accounting roles.
2. Integrated Skills: CGMA certification aims to produce value human resources with diversified and expanded skills. CGMA integrates financial expertise with strategic management skills making the certificate holder an expert in financial data analysis, strategy development, business risk management, and strategic decision making.
3. Diverse Career and Better Career Opportunities: CGMA certifications integrate financial knowledge with strategic management skills, offering diversified career options to its holders. CGMA Certifications even invite better career opportunities and advancement. CGMA-certified professionals enjoy preference over others due to their ability to provide strategic financial insights and drive business performance. Their commitment to excellence, professionalism, and continuous learning in management accounting extends their competitive advantage.
4. Ethical Standards: CGMA is offered by the two most reputed accountancy bodies that ensure compliance with the ethical code of conduct and professional standards. This makes CGMA the most trustworthy designation. CGMA-certified professionals are expected to adhere to transparency, integrity, and accountability principles.
5. Professional Credibility: CGMA Certifications prove the professional credibility and knowledge of a person in the field of management accounting, strategic management, finance, and business. CGMA enhances their skill and imparts credibility to their position.
6. Continuous Professional Development (CPD): CGMA professionals can stay updated about the latest industry trends, regulations, and best practices through ongoing professional development programs. CGMA professionals can maintain their relevance and competitiveness by being committed to a lifelong learning strategy.
7. Higher Salary: CGMA professionals enjoy higher salaries in comparison to other management accounting personnel. Their specialized skills and expertise help them attract higher salaries and additional benefits.
CGMA Eligibility
A. Educational Requirements
Candidates must have a bachelor’s degree or higher from a recognized educational institution in accounting, finance, business administration, or a related field. Some additional coursework or credits in management accounting or related subjects may be required.
B. Experience Requirements
Candidates must have relevant work experience in management accounting or a related field often ranging from one to five years. Candidate shall have verified work experience in tasks such as financial analysis, budgeting, strategic planning, and decision support.
C. Examination Requirements
CGMA candidates must qualify for the required exams to demonstrate their knowledge and skills in management accounting. This examination includes case studies, computer-based assessments, or other evaluation methods. The candidates are excepted to complete Certificate in Business Accounting and CGMA Professional Qualification.
D. Process
1. Meet the educational and experience requirements mentioned above.
2. Gather all the necessary documents like transcripts, experience letters, and any relevant certifications.
3. Visit the official website of the Chartered Institute of Management Accountants (CIMA) to apply for the course online. You may also apply offline by visiting regional offices.
4. After being registered, qualify for all the relevant examinations and obtain the CGMA Certificate. Further, you need to become a member of either the AICPA or CIMA to maintain your CGMA designation.
E. Fees
1. Registration Fee:
Registration (one-time payment) |
GBP 99 |
Re-registration |
GBP 99 |
2. Subscription Fee:
Existing candidates must pay their subscription fee before 31 March each year to prevent expiration.
New candidates (first year’s subscription fee) |
Free |
Candidates |
GBP 139 |
Affiliates (candidates who are taking a short study break) |
GBP 99 |
Candidates who have passed Strategic Case Study exam |
GBP 319 |
Practical Experience Requirements (PER) application fee |
GBP 190 |
3. Exam Fee:
CIMA’s CGMA exams are priced based on a tiered structure mentioned below:
Tier 1: Western Europe, Australia, Singapore, USA and Canada.
Tier 2: Rest of the world
Tier 3: Sub-Saharan Africa
Exam Fee Subject-wise |
Tier 1 |
Tier 2 |
Tier 3 |
---|---|---|---|
Certificate in Business Accounting – Objective Tests (per exam) |
GBP 117 |
GBP 106 |
GBP 85 |
Professional Qualification: |
|||
Operational Level – Objective Tests (per exam) |
GBP 138 |
GBP 125 |
GBP 98 |
Operational Level – Case Study |
GBP 239 |
GBP 223 |
GBP 181 |
Management Level – Objective Test |
GBP 164 |
GBP 143 |
GBP 122 |
Management Level – Case Study |
GBP 246 |
GBP 232 |
GBP 189 |
Strategic Level – Objective Test |
GBP 232 |
GBP 223 |
GBP 168 |
Strategic Level – Case Study |
GBP 350 |
GBP 329 |
GBP 287 |
Note: GBP stands for British Pound Sterling. As of 29th April Current Price of, £1 British Pound sterling (GBP) = $1.25 United States Dollar(USD)
4. Exemption Fee:
There is no charge for exemption fees.
F. Membership
Candidates who meet the eligibility criteria and complete the required exams or assessments are awarded by CGMA membership, granted by the Chartered Institute of Management Accountants (CIMA).
Benefits of CIMA Membership:
- The Chartered Global Management Accountant (CGMA) designation is globally recognised as most trusted profession.
- Imparts package of skills that develop the career and add on value to its members.
- A series of web broadcasts throughout the year that keep members updated about the relevant changes in rules nad practice.
- Networking opportunities are provided to the members.
Salary of a CGMA
According to a recent AICPA® & CIMA® survey, salaries of new accountants and finance professionals have grown 8% over the past year, and those holding the prestigious CGMA designation enjoy even greater advantages.
According to AICPA® & CIMA® , ZipRecruiter, and payscale,
- CGMAs in the United States earn an average salary of $110,000 – $150,000+ per year.
- CGMAs in the United Kingdom earn an average salary of £70,000 – £100,000+ per year.
- CGMAs in the India earn an average salary of ₹20,00,000 – ₹65,00,000+ per year
Job Title |
Average Salary |
---|---|
Chief Accounting Officer (CAO) |
$220,925 |
Chief Financial Officer (CFO) |
$164,973 |
Corporate Controller |
$133,979 |
Financial Controller |
$117,634 |
Vice President (AVP), Financial |
$166,186 |
Internal Audit Director |
$135,498 |
Accounting Director |
$165,162 |
Finance Manager |
$108,177 |
Business Unit Controller |
Business Unit Controller |
The information presented here is based on salary data from reputable sources like Payscale, AICPA® & CIMA®, and ZipRecruiter.
CGMA Exam Structure
The CGMA exam is divided into two parts-
A. Certificate in Business Accounting
Certificate in Business Accounting is an objective tests of 120 minutes. It has four parts BA1, BA2, BA3 and BA4. BA1, BA2 and BA3 contain 60 Objective Test questions each and BA4 contain 85 Objective Test questions.
B. Professional Qualification
There are two types of computer-based exams for the Professional Qualification:
1. Objective Tests: It is a computer-based exam of 90 minutes and include short multiple-choice questions, number-entry questions, drag-and-drop questions and other formats covering the entire subject. Conducted on demand.
2. Case Study Exams: It is also computer-based exam of 3 hours each conducted 4 times a year. It is conducted to judge the candidates knowledge, skills and techniques from across the three pillars including Operational Level, Mangement level, and Strategic level. The question structure is “Case-Study Type” to analyze the candidate’s ability to apply managerial accounting principles in real-world situations. Under the CGMA examination, fictitious industry data and information are provided to the candidates 7 weeks before the examination date, and on the day of the exam new information is provided and they are required to answer 3-5 questions about the fictitious company.
Information as per https://www.aicpa-cima.com/resources/landing/exams?
CGMA Exam Tips
1. Understanding Requirements: Get clarity about the CGMA qualification process, including the educational requirements, work experience criteria, and exams or assessments.
2. Rely on Official Study Materials: Use official study materials provided by the Chartered Institute of Management Accountants (CIMA) to prepare and take practice exams to gain experience with the CGMA exam format and case study analysis..
3. Strenght and Weakness Analysis: Identify your weaknesses and strengths and focus accordingly to balance all the aspects of the examination.
4. Network Opportunities: Grab the advantage of networking. Join online forums where you can connect with other CGMA candidates and professionals to seek guidance and mentorship.
5. Embrace Your Confidence: Trust your abilities and stay calm and confident. Manage your time effectively to take maximum advantage.
CGMA Exam Resources
- The official website of AICPA & CIMA.
- Online learning platforms and professional organizations that offer CGMA courses.
- Books and publications related to management accounting principles and best practices.
Conclusion
Chartered Global Management Accountant (CGMA) is a designation in the field of management that integrates financial and strategic knowledge enabling professionals to become more versatile in their approach. CGMA as a profession offers a more competitive edge to its members and helps them grab better career opportunities in today’s world that demands an expanded skillset. CGMA certification represents professionalism and ethical conduct as outlined by AICPA and CIMA. CGMA has emerged as a versatile career option to meet the demands of the growing industries.
Chartered Global Management Accountant (CGMA) – FAQs
How is the CGMA different from other accounting certifications?
The CGMA designation focuses specifically on management accounting and strategic finance, distinguishing it from other accounting certifications such as the Certified Public Accountant (CPA) or Certified Management Accountant (CMA). CGMAs are trained to integrate financial expertise with strategic management skills to drive organizational success.
What does a CGMA do?
CGMAs are skilled professionals who provide financial and strategic management expertise to organizations. They analyze financial data, develop strategic plans, evaluate business risks, and make informed decisions to support organizational goals and objectives.
What career opportunities are available to CGMAs?
CGMAs can pursue a wide range of career opportunities in various industries and sectors, including finance, consulting, manufacturing, technology, and healthcare. They may work as financial analysts, management accountants, business managers, or executives, among other roles.
How do I maintain my CGMA designation?
CGMA members are required to engage in ongoing professional development activities to maintain their designation. This may include attending seminars, workshops, webinars, and other learning opportunities to stay updated on the latest trends and best practices in management accounting and strategic finance.
When is the CGMA exam administered?
The CGMA exam is administered in May, August, and November. Applicants can register up to six months before the test, but they must complete all learning competencies two weeks before the exam.
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