The Chartered Global Management Accountant (CGMA) credential is a unique accreditation program that is jointly offered by two of the most widely recognized professional financial organizations: the Chartered Institute of Management Accountants (CIMA) and the American Institute of Certified Public Accountants (AICPA).
What is the CGMA?
The CGMA is a global management accounting credential which designates that the holder has the highest levels of financial expertise, accounting knowledge and strategic insight. It is used to differentiate individuals with vast management accounting experience and verify the expertise of academia-based accountancy professors. The CGMA is favored by management accountants around the world because it establishes their core competencies and demonstrates their expertise in key areas, such as strategic planning, change management, risk assessments, corporate assets and operational effectiveness. The field of management accounting uses both financial data and non-financial information to minimize risks, achieve organizational goals and improve internal controls.
The CGMA Competency Framework
This framework is designed to help management accountants and their shareholders understand the skill and knowledge requirements for their positions. The competency framework is based on the collective needs for integrity, objectivity, professional excellence and commitment to continuous learning. The CGMA Competency Framework consists of four knowledge domains: people, business, technical and leadership. The use of the framework is compared with conducting an audit or risk assessment because it creates a conceptual framework that establishes a baseline of targeted behaviors. Companies use the information gained to minimize risks, fill learning gaps and develop growth strategies. For example, executives would use the framework to define the duties and expectations of their management accountants.
A senior accounting manager or controller in a corporation’s headquarters will be expected to have the CGMA credential because they must apply their knowledge to guide financial and operational decisions. They are key members of accounting teams who all work together to maintain the financial health of the company. Senior accounting managers must not only have a strong work ethic and social intelligence, but also a natural talent for engaging employees and promoting improvements. They supervise employees who prepare financial forecasting reports and internal financial statements. They coordinate audits, managing budgets and recommend financial performance benchmarks. They regularly communicate with executives and present accounting reports in key meetings.
Why Employers Favor the CGMA Credential
The success of the CGMA program is rooted in the in-depth connection with the CPA curriculum. All CGMAs meet the exam, ethical, education and experience requirements needed to become an official CPA and a member of the AICPA. The CGMA designation complements the CPA credential because it exclusively focuses on corporate finance and management accounting. It gives the holders access to extensive and highly specialized training, research, networking and professional resources. The CGMA credential empowers the holder to bring value added knowledge to their organization. CGMA holders often are involved with projects to improve operational efficiency and help their companies better understand market trends and upcoming regulatory changes.
Those who possess the Chartered Global Management Accountant credential demonstrate to their employers and the public that they have the management accounting skills needed to maintain financial accuracy and clearness.