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Explaining the CMA?

  • 1.  Explaining the CMA?

    Posted 05-24-2024 10:48 PM

    Hi,

    I'm curious how anyone has explained the value of the CMA to prospective employers?

    Thanks,

    Morgan



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    Morgan McQuade
    Analyst
    Seattle WA
    United States
    ------------------------------


  • 2.  RE: Explaining the CMA?

    Posted 05-25-2024 08:58 AM

    Douglas Sledge

    Good Day,

    It has been/is my opinion the base problem with CMA recognition is professional interaction ownership.  The CPA is given, by law and code, attestation and review rights such as: opinions, reviews, audits, compilations, certifications, etc.    

    I have suggested for some time that the ICMA develop an analysis, or some such action, to take ownership and administration of, while setting standards for related professional work..   Yes, an Analysis, to differentiate it from designated CPA rights. The analysis could be directed toward: budgets, projections, and internal reporting of customers of Banks and other financial institutions looking for financing.  The analysis would provide an added assurance to bank officials as to the validity of loan qualification supporting documents. Recently, legal issues are being scrutinized as to correct asset valuation by loan seekers.  The CMA would be designated in the ICMA standards as the professional authorized to develop and approve such an analysis.

    Sledge
    Douglas A. Sledge, CPA Management Accountant

    Douglas A. Sledge, CPA, CGMA. CMA. MBA
    Certified Advanced QBO QuickBooks ProAdvisor
    256-443-1624

    Plan, Organize, Implement, Control.



    ------------------------------
    Douglas Sledge, CMA, CPA, CGMA, MBA, ADVANCED QBO PROADVISOR
    [DOUGLAS A. SLEDGE . CPA MANAGEMENT ACCOUNTANT]
    Foley AL
    United StatesConsultant
    ------------------------------



  • 3.  RE: Explaining the CMA?

    Posted 30 days ago

    Whereas the CPA test is primarily for those who wish to work in a CPA firm doing auditing and taxes, the CMA is for those who work in industry. The tests are different, the CMA proves knowledge of cost accounting needed in a company, such as activity based costing, recognizing revenue and cost drivers, pricing, channel inventory, financial strategy and forecasts, quantitative analysis and other skills needed daily in an organization to help achieve productivity and profitability, particularly in manufacturing firms.

    As a CPA and a CMA as well as owning a financial staffing firm, I explain this often.

     



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    Patricia Mayer CMA, CPA
    Chief Executive Officer
    Patricia J Mayer & Assoc LLC
    Martinez CA
    United States
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  • 4.  RE: Explaining the CMA?

    Posted 28 days ago

    The way I explain it to those who have a basic understanding of accounting is:  "A CMA is to operations what a CPA is to the audit and tax."  



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    Thomas Meisenzahl CMA, CSCA
    Controller
    Johnson Matthey
    Sevierville TN
    United States
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  • 5.  RE: Explaining the CMA?

    Posted 28 days ago

    Douglas Sledge

    Good Day,

    It has been/is my opinion the base problem with CMA recognition is professional interaction ownership.  The CPA is given, by law and code, attestation and review rights such as: opinions, reviews, audits, compilations, certifications, etc.    

    I have suggested for some time that the ICMA develop an analysis, or some such action, to take ownership and administration of, while setting standards for related professional work..   Yes, an Analysis, to differentiate it from designated CPA rights. The analysis could be directed toward: budgets, projections, and internal reporting of customers of Banks and other financial institutions looking for financing.  The analysis would provide an added assurance to bank officials as to the validity of loan qualification supporting documents. Recently, legal issues are being scrutinized as to correct asset valuation by loan seekers.  The CMA would be designated in the ICMA standards as the professional authorized to develop and approve such an analysis.

    Sledge
    Douglas A. Sledge, CPA Management Accountant

    Douglas A. Sledge, CPA, CGMA. CMA. MBA
    Certified Advanced QBO QuickBooks ProAdvisor
    256-443-1624

    Plan, Organize, Implement, Control.



    ------------------------------
    Douglas Sledge, CMA, CPA, CGMA, MBA]
    [DOUGLAS A. SLEDGE . CPA MANAGEMENT ACCOUNTANT]
    Foley AL
    United StatesConsultant
    ------------------------------



  • 6.  RE: Explaining the CMA?

    Posted 12 days ago

    Thanks for the suggestion - great quick explanation!



    ------------------------------
    Morgan McQuade
    Analyst
    Seattle WA
    United States
    ------------------------------



  • 7.  RE: Explaining the CMA?

    Posted 28 days ago

    My current analogy is comparing a general practitioner doctor to a specialist, such as a cardiologist. While both doctors know about the heart, would you go to a GP for a serious heart problem or would you go to a cardiologist? Similarly, CPAs and CMAs both know accounting. If you are looking for a specialist on budgeting, forecasting, cost analysis, etc., go with the specialist, the CMA.



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    David Belnap, CMA, CSCA, CPA
    Belnap Accounting
    Hollywood FL
    United States
    ------------------------------



  • 8.  RE: Explaining the CMA?

    Posted 27 days ago
    The lack of knowledge of the CMA is a "SYMPTOM".   "Lack of professional interaction ownership" is the problem.  Explanation of a "symptom" never ressolves a base problem.

    Sledge
    Douglas A. Sledge, CPA Management Accountant
    Douglas A. Sledge, CPA, CGMA. CMA. MBA
    Certified Advanced QBO QuickBooks ProAdvisor
    256-443-1624

    Plan, Organize, Implement, Control.






  • 9.  RE: Explaining the CMA?

    Posted 22 days ago

    One way to explain it is that CPA can easily be outsourced but CMA is CORE and a must to have inhouse.  







  • 10.  RE: Explaining the CMA?

    Posted 22 days ago
    I am an outsourced Management Accountant.
    Sent from my iPhone




  • 11.  RE: Explaining the CMA?

    Posted 27 days ago

    One way I like to think of it is that if you want to improve your reporting, hire a CPA. If you want to improve your results, hire a CMA.



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    William Holmes CMA
    Analyst
    Pataskala OH
    United States
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  • 12.  RE: Explaining the CMA?

    Posted 12 days ago


    Thanks to everyone who responded!  All helpful!



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    Morgan McQuade
    Analyst
    Seattle WA
    United States
    ------------------------------