Average Salary of a CMA
In today’s rapidly evolving business landscape, companies are constantly seeking the expertise of skilled accounting professionals to help them navigate the complexities of financial management. Among the various certifications available in the field, the Certified Management Accountant (CMA) designation has emerged as one of the most highly regarded and sought-after credentials. With its rigorous curriculum and comprehensive exam, the CMA certification clearly indicates an individual’s mastery of the essential skills and knowledge required to excel in the world of accounting. As such, earning a CMA certification can open up many career opportunities and help professionals stand out in a competitive job market.
What is CMA?
The Certified Management Accountant (CMA) is a professional certification in the accounting and financial management fields. The CMA certification is offered by the Institute of Management Accountants (IMA), a professional organization for accountants and financial professionals.
To become a CMA, you must meet specific eligibility criteria, including a bachelor’s degree from an accredited college or university, two years of professional experience in management accounting or financial management, and passing two exams.
The CMA certification is essential for accounting professionals who want to advance their careers in management accounting and financial management. CMAs have the necessary skills and knowledge to provide strategic financial advice, manage financial risks, and analyze financial data to make informed business decisions.
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Job opportunities for CMA
Numerous job opportunities are available for CMAs in various industries, including manufacturing, healthcare, financial services, and government. The job roles of a CMA include financial analyst, budget analyst, controller, and chief financial officer.
The top industries hiring CMAs are manufacturing, healthcare, and financial services. According to the IMA, the job prospects for CMAs are expected to grow by 16% through 2028, which is faster than the average growth rate for all occupations.
The average salary of a CMA
The average salary of a CMA varies depending on several factors, such as experience, industry, and location. According to the IMA, the average salary of a CMA in the US is $110,000 per year.
The salary of a CMA is higher than that of other accounting professionals, such as Certified Public Accountants (CPAs). The CMA certification provides specialized knowledge and skills in management accounting and financial management, which employers highly value.
The average annual salary for a Certified Management Accountant (CMA) varies based on location, industry, experience, and job role. Here are some of the critical points regarding CMA salaries:
• According to the Institute of Management Accountants (IMA), the average base salary for a CMA in the US is $107,000. Entry-level CMAs typically earn between $60,000 to $80,000.
• CMAs in finance, banking, and consulting tend to have higher salaries than other sectors.
• Salaries for CMAs in San Francisco, New York, and Boston are often the highest due to these cities’ high cost of living.
• CMA salaries increase with experience and additional certifications. Senior CMAs with more than ten years of experience can earn up to $140,000.
• CMAs in managerial or director roles often have higher salaries than staff accountants or analysts. Management roles commonly pay at least $20,000 more than non-management roles.
• Finance executives and CFOs with a CMA designation can earn over $150,000 annually. Top earners make more than $200,000.
• Bonuses and stock options can significantly increase the total annual compensation for CMAs, especially those in mid to senior-level roles.
The average CMA salary in the US ranges between $80,000 to $110,000 per year depending on location, industry, experience, and job role. But top earning CMAs working in senior positions in finance hubs like New York City can make over $200,000 with bonus and equity compensation.
How to increase your salary as a CMA?
As a Certified Management Accountant (CMA), you have the potential to increase your salary by taking various steps. One such effort is gaining more experience in your field, which can be achieved by taking on challenging assignments and working on projects that expand your skill set.
Another option is to obtain additional certifications, which can showcase your expertise in specific areas and make you more desirable to potential employers. Higher education, such as earning a master’s degree in accounting or finance, is another way to increase your earning potential as a CMA.
The benefits of increasing your salary as a CMA are numerous. It can lead to more excellent financial stability for you and your family and result in higher job satisfaction and more career opportunities. With a higher salary, you may be able to afford a better standard of living, including excellent housing, better healthcare, and increased leisure activities. You may be able to save more money for your future, whether that be for retirement or other long-term goals.
Taking steps to increase your salary as a CMA is a wise investment in your future. By doing so, you can achieve more excellent financial stability, enjoy more career opportunities, and experience higher job satisfaction.
Challenges Faced by CMAs
Although a Certified Management Accountant (CMA) career has numerous advantages, it also presents challenges that CMAs must navigate in the job market.
The competition for CMA jobs is high, and the job market can be volatile, making it tough to land a job. Additionally, CMAs must keep their certification current by engaging in ongoing professional development and continuing education, which can be time-consuming and costly.
CMAs can take several steps to overcome these challenges to enhance their marketability. For instance, they can focus on gaining more experience, both through their current job and by seeking out additional opportunities to expand their skill set.
Networking with other professionals in their field can also be beneficial, as it can help CMAs stay informed about job openings and trends in the industry. Finally, staying abreast of the latest best practices and trends in the CMA field is critical, ensuring that CMAs are up-to-date and competitive in the job market.
FAQs
What is the difference between a CMA and a CPA?
A CMA focuses on management accounting and financial management, while a CPA focuses on auditing and taxation. Additionally, the eligibility criteria for a CMA and a CPA are different.
Is the CMA certification worth it?
Yes, the CMA certification is worth it for accounting professionals who want to advance their careers in management accounting and financial management. The CMA certification provides specialized knowledge and skills highly valued by employers and can lead to higher salaries and more excellent career opportunities.
What industries hire CMAs?
Top industries hiring CMAs include manufacturing, healthcare, financial services, and government. However, CMAs are in demand across various sectors, as their skills and expertise in management accounting and financial management are highly valued.
How can I increase my chances of getting hired as a CMA?
To increase your chances of getting hired as a CMA, you can focus on gaining more experience, obtaining additional certifications, and networking with other professionals in the field. Additionally, staying up-to-date with industry trends and best practices can help you stand out to potential employers.
What are the benefits of becoming a CMA?
Becoming a CMA can lead to higher salaries, more excellent career opportunities, and increased job satisfaction. Additionally, the specialized knowledge and skills gained through the CMA certification can help accounting professionals provide strategic financial advice, manage financial risks, and analyze financial data to make informed business decisions.
Conclusion
In conclusion, the Certified Management Accountant (CMA) certification is a valuable asset for accounting professionals who want to advance their careers in management accounting and financial management. The average salary of a CMA in the US is $110,000 per year, which is higher than that of other accounting professionals. However, to increase your salary as a CMA, you must gain more experience, obtain additional certifications, and pursue higher education. Despite the challenges CMAs face, many opportunities are available for those who are dedicated and committed to their profession.
