What is a CGMA?

The Chartered Global Management Accountant (CGMA) designation was introduced as a form of support for worldwide management methodology. The value that the CGMA designation can potentially add to professional bodies is based in the scope of knowledge held by accredited accountants.

The CGMA has specific standards for the areas of skill that it upholds as key aspects of an account manger’s full repetoire. The specific areas of expertise that the CGMA highlights are management, strategy and operations.

Key operations

Account managers are responsible for the management of both general systems and ledger systems. Both financial statements and rudimentary tax computations must be prepared on a regular basis. While managing the short term finances, capital expenditures must be evaluated as well. The managers will be responsible for conducting both the budget and forecast for all of the organization’s vital activities, as well as calculating the overall expenditure on the costs of products.

The primary operation that managers will be responsible for is to keep up constant awareness. Managers must be aware of all issues with efficiency, quality, marketing, IT/IS, and environment. While each account manager’s priorities will be uniquely related to the nature of their business, they will oftentimes employ IFRS and GAAP to work more efficiently.

Management tasks

Management tasks are related to the analysis of all competition metrics in the environment. Managers will need to prepare CSR reports, generate group accounts, and conduct evaluation of the organization’s performance. Group accounts will need to be prepared, budgeting systems will need to be designed, and the costs for competitive advantage need to be planned accordingly. Product management advisement is a top priority, and all projects will need to be prepared, managed, and executed properly.

Strategy development

The manager will be responsible for designing and running all of the vital performance management systems to keep up consistent results. Financial strategies are formed and evaluated for the highest chance at a positive ROI. Cash flows and all other forms of finances are forecast and modeled. When it comes to strategy development, accurate risk management will be key for avoiding any possible expensive pitfalls along the way.

CGMA designation granting

At least three years of experience in management, a Chartered Institute of Management Accountants (CIMA) certificate in Business Accounting, and passing grade on the CIMA exam are required in the CIMA Pathway towards the receiving the designation. Similarly, in the American Institute of Certified Public Accountants (AICPA) pathway, AICPA-affiliated members must have three years of experience and successfully pass the CGMA exam.

Both the AICPA and CIMA share joint ownership as issuing bodies of the designation to all potential candidates. In order to be considered deserving of the designation, the potential applicants need to exhibit a certain level of competence in business sustainability strategizing.

Conclusion

Chartered Global Management Accountant (CGMA) designation is centered around proper risk management, strategy development, and operation conduction for well-oiled marketing machines worldwide. No matter what the specific area of focus of the business may be, a CGMA should ideally contribute their skills towards thinning the margin of error for all campaigns by as much as possible.