Is Earning the CGMA Designation Worth Your Time and Money?

A relatively recent designation for management accountants is GGMA, which stands for Chartered Global Management Accountant. A collaborative endeavor between the AICPA and CIMA awards the title.

Why Do I Need a CGMA Designation?

The "formal" justifications for wanting to become a CGMA are listed on the CGMA website. The following are my justifications from a practical standpoint.

1. It Was Possible for You to "Buy" This Designation

Since January 2015, candidates seeking the designation must sit for the CGMA exam. But the great majority of CGMAs received the title previous to 2015 by just completing a form and paying the price.

2. The majority of AICPA members are employed by the sector

It is believed that the reason for this joint endeavor is because the majority of AICPA members work for corporations rather than public accounting firms. These CPAs want their knowledge of management accounting to be acknowledged. CGMA is a simple approach to capitalize on the AICPA's current membership.

3. AICPA / CIMA Really Want to Build a Global Brand

Accounting standards used to be different across the globe. Because of this, it is very hard to build a global designation for accountants. Now that the accounting standards are converging, and that management accounting concepts are similar across countries anyway, AICPA and CIMA decide to join hands to establish a new, truly global brand.

The CFA Institute has been wildly successful in monopolizing the finance designation on a global scale. The IIA also grants only internal audit certification in the world. It is possible that the two institutes are able to pull this off.

CGMA vs CMA

1. Now, Both Designations Require an Exam

CMA

The CMA designation granted by the IMA has been established for more than 40 years. Although membership is much smaller than that of the AICPA, it has a sizable community of around 20,000 active CMAs and 70,000 IMA members. It has also established a strong footprint in China and the Middle East. The CMA program is rigorous requiring the passing of a difficult 2-part exam together with 2 years of relevant experience. Employers pay more respect to a title that is earned rather than paid.

CGMA

The exam has been launched in January 2015 and it has become mandatory for the CGMA designation. The exam is developed by CGMA to test a candidate’s problem-solving skills in real business situations. Coverage includes financial strategy, risk management and strategic management, as well as research, data analysis and communication skills. The exam is delivered online in case study format.

2. More Titles = More Maintenance Fees + More CPE?

The fee is now $100 to 150 per year for AICPA members. For now, the CPE requirement for AICPA member and CGMA designation holders is the same.

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3. Risk of Being Seen as Title Collectors?

Some employers may not like this CGMA idea (especially if the boss is a CMA). You may be seen as someone who collect titles for the sake of it.

4. Can the CGMA Designation Hold Up to Its Name?

AICPA has ventured out to certifications peripheral to accounting, without much success in my opinion. PFS (Personal Financial Specialist) hasn’t done well in comparison to CFP. The IT certification (for IT auditors) is less recognized than CISA.

More Comparison in Video Format

How to Become a CGMA

This summary is based on my latest understanding of the CGMA exam and certification requirement. Given this is a new designation, rules may change frequently. Please double check this information with that on the official website.

1. Become an AICPA or CIMA Member

The CGMA certification is open to AICPA or CIMA members only.

2. Complete the CGMA Exam

You must also take and pass the CGMA exam.

3. Fulfill the Experience Requirement

For AICPA Members

After the exam, you will need to accumulate 3 years of relevant experience based on the “competency framework”. According to my research, this includes:

• financial accounting, management accounting or internal audit in business, industry or government; or
• financial/management accounting experience on a consulting basis; or
• management accounting role focused on the management and operation of an accounting firm.

Note:

• You can also replace 1 year of the above with 1 year of public accounting experience.
• Personal financial services experience does not qualify for eligibility.

For CIMA Members

The experience required to become a CIMA is sufficient for the CGMA designation. Therefore, CIMA members are automatically entitled to become CGMA at no extra cost. All fees are included in the CIMA subscription.

Other Designation Holders

CPA licensees who are not AICPA members are not eligible to become a CGMA. Generally speaking, the administrator encourages US candidates to choose the AICPA route, and others to choose the CIMA.

How Much Does It Cost?

The CGMA designation is free for CIMA members. For AICPA members who are eligible, the registration fee is $150 per year. Dual state CPA society-AICPA members receive a $50 savings, making the cost $100 per year.

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