Chartered Global Management Accountant (CGMA)

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on September 08, 2023

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What Is a Chartered Global Management Accountant (CGMA)?

A Chartered Global Management Accountant (CGMA) is a globally recognized professional designation for management accountants and financial managers.

The designation is awarded by the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA).

The CGMA signifies proficiency in finance, operations, strategy, and management, providing a broad-based business perspective.

The CGMA is designed to develop and recognize professionals who can connect all aspects of business, from financial performance to strategic management.

This designation emphasizes the holistic role of management accountants, moving beyond the traditional confines of finance into a wider business context.

How the CGMA Designation Works

Obtain the Certification

To become a CGMA, one must first meet certain educational and professional experience prerequisites. Candidates must pass a comprehensive exam, demonstrating proficiency in the key competencies defined by the CGMA Competency Framework.

Role of a CGMA in an Organization

A CGMA contributes to an organization by applying its understanding of business strategy and performance management. They drive better decision-making through strategy formulation, planning, risk management, and financial analysis.

Skills Required for a CGMA

A CGMA is expected to possess a range of skills, including financial management, business strategy, risk management, and decision-making. Moreover, proficiency in financial reporting, strategic planning, performance evaluation, and business ethics is highly desirable.

Process of Becoming a CGMA

Education and Experience Requirements

Candidates should hold a bachelor's degree or equivalent, preferably in business or a related field. Also, a minimum of three years of relevant professional experience in business or finance is needed.

Exam Details

The CGMA exam tests candidates' abilities in areas like management accounting, financial strategy, and business strategy. The exam format includes both objective and case study questions.

Continuing Professional Development (CPD)

Once the CGMA designation is achieved, professionals are required to engage in CPD to keep their knowledge and skills up-to-date. The AICPA and CIMA provide resources and opportunities for learning and development.

Process of Becoming a Chartered Global Management Accountant (CGMA)

Benefits of Being a Chartered Global Management Accountant

Recognition and Credibility

Holding a CGMA title enhances professional credibility and recognition in the global business community. This credential signals advanced skills and commitment to high ethical standards.

Enhanced Career Opportunities

A CGMA can open doors to various roles within finance, business strategy, and management at global organizations, significantly enhancing career prospects.

Professional Development and Learning Resources

CGMAs get access to a wealth of learning resources, including webinars, industry reports, and toolkits, providing continuous professional development opportunities.

Challenges in Becoming a Chartered Global Management Accountant

Rigorous Exam and Experience Requirements

The CGMA exam and experience requirements are challenging, and the road to certification can be time-consuming and demanding.

Balance Work, Study, and Personal Life

Candidates often struggle with balancing their professional commitments and personal lives with the rigorous study required for the CGMA exam.

Keep Up With Continuing Professional Development

Staying updated with industry trends and standards, as required by CPD, can be challenging and time-consuming for some professionals.

Benefits and Challenges of Being a Chartered Global Management Accountant (CGMA)

Impact of CGMAs in the Business World

Strategic Decision-Making

CGMAs often play a vital role in strategic decision-making, using their financial expertise to drive business strategies and outcomes.

Realm of Global Business

CGMAs' broad understanding of global business practices allows them to navigate complex business landscapes, facilitating international business operations.

Comparison With Other Accounting Certifications

CGMA vs Certified Public Accountant (CPA)

While both CGMA and CPA are prestigious accounting designations, they focus on different areas. The CGMA emphasizes management accounting and business strategy, while the CPA focuses more on public accounting and auditing.

CGMA vs Chartered Financial Analyst (CFA)

While the CFA designation is centered on investment management, portfolio strategy, and financial analysis, the CGMA focuses on broader aspects of business and financial management.

CGMA vs Certified Management Accountant (CMA)

The CGMA and CMA are similar in their focus on management accounting, but the CGMA provides a more international perspective, reflecting its global acceptance.

Comparison of Chartered Global Management Accountant (CGMA) With Other Accounting Certifications

Conclusion

The Chartered Global Management Accountant is a prestigious, globally recognized designation that signifies a high level of proficiency in management accounting, strategy, operations, and finance.

The role of a CGMA is multifaceted, contributing to strategic decision-making and driving improved business outcomes. Despite the rigorous process of acquiring the designation and the commitment required for ongoing professional development, the benefits are numerous.

CGMAs not only enjoy enhanced professional credibility but also have access to a broad range of career opportunities and a plethora of learning resources.

Their understanding of international financial and business standards positions them uniquely to navigate the complexities of the global business landscape.

With evolving industries and the increasing complexity of business challenges, the demand for the strategic acumen and financial expertise of CGMAs is poised to grow in the future.

Chartered Global Management Accountant (CGMA) FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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