The Chartered Global Management Accountant designation is a current joint providing of the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA). Launched in January 2012, the CGMA is supposed to signify information in the areas of control accounting and control reporting, which practice accounting knowledge to activities including:
- Performance dimension
- Management choice support
- Corporate method
- Identifying commercial enterprise opportunities
- Making funding decisions
- Risk management
- Asset protection
Management accounting includes the gathering, upkeep, analysis and alertness of each financial and non-monetary records and metrics.
The Sales Pitch
In an inaugural press release, the AICPA supplied 5 motives why a CPA should do not forget adding a CGMA designation.
- According to a survey by the AICPA and the CIMA, 80% of CEOs might pick a job candidate with a CGMA designation to 1 without it. Additionally, 75% answered that they would really like existing economic personnel to reap a CGMA.
- Because control accountants have a vast ability set and are skilled to use measures of performance beyond purely economic ones, they could upload specific value in agencies' choice-making strategies.
- CGMAs have above-average agility and adaptableness, key characteristics in hastily converting commercial enterprise environments.
- As a global designation, CGMAs have the mobility to transport to different departments inside a organization and around the sector.
- The CGMA creates a course to so-known as "C-Suite" positions due to the fact holders have the competencies to participate in vital commercial enterprise selections.
Critiques of the Sales Pitch: The AICPA's income pitch for the CGMA is concern to a number of critiques. Here are a few, keyed to the motives listed above.
- CEOs are far removed from the hiring selections in an effort to have an effect on the significant majority of CGMAs. Also, few have accounting credentials or information inside the area and are not likely even to have heard of the CGMA earlier than being surveyed. As a end result, the fee of this survey is rather questionable.
- Just due to the fact a given practical location is critical, it does now not necessarily follow that a new credential related to it's miles either vital or precious in itself. Moreover, it has yet to be validated that holders of a CGMA are any more professional, on average than experienced management accountants without one.
- Again, the CGMA is just too new for everyone to decide whether its holders are any better, on common than other human beings in the subject without it.
- Once more, given that the CGMA is new and in large part unknown, it has no tune record in selling mobility.
- Given the novelty of the CGMA, that is yet another unsubstantiated prediction not supported via reality.
Furthermore, it must be cited that neither a CPA nor an extensive heritage in accounting usually is vital to go into the fields of control accounting or management reporting. Rather, as is real of many enterprise and monetary disciplines, at the job education is often the key to building know-how in these regions.
In order to receive the CGMA designation, one need to first be both a balloting member in good status of the AICPA (that is, a CPA) or a member of the CIMA. Additionally, one need to have at the least 3 years' experience in control accounting. For the ones looking for their CPA license, this indicates getting at least two years of public accounting revel in.
The examination began being administered to applicants for the CGMA beginning in 2015. Someone who isn't a CPA but who obtains the CGMA won't present themself as a CPA, which ought to be earned one after the other.
Being designated as a CGMA is loose for existing contributors of the CIMA. For individuals of the AICPA with out being a state CPA society member, becoming a CGMA prices $a hundred ninety in line with year. For members of each the AICPA and a state CPA society, the charge is $140 in step with yr. (These membership dues amounts are for 2021-22.)