What is CIMA? Management Accounting Career Explained

Do you wish to be at the helm of a major project, making critical financial decisions that steer your company towards success? If so, then you might wonder how to achieve this influential role. The answer might lie in the question- “What is CIMA?” The Chartered Institute of Management Accountants (CIMA) Certification is not only a credential; it’s a transformative approach that equips you with the expertise to excel in management accounting. 

This globally recognised qualification hones your skills in financial analysis, strategic planning, and risk management, positioning you as a trusted advisor in the finance industry. Ready to discover What is CIMA and how can it elevate your professional journey? Let’s in and uncover the potential that awaits you. 

Table of Contents 

1) What is a CIMA? 

2) CIMA Qualification Levels 

3) Advantages of CIMA Certification  

4) How to Earn the CIMA Credential?  

5) Conclusion 

What is a CIMA? 

Chartered Institute of Management Accountants (CIMA), a certification offered by the Investments and Wealth Institute. This designation focuses on key areas such as asset allocation, ethics, due diligence, risk measurement, investment policy, and performance evaluation. Professionals with the CIMA designation often specialise in investment consulting.
 

CIMAs often work for larger financial consulting firms, where they engage extensively with clients and manage substantial accounts. They can serve both individuals and corporations, frequently advising large companies or high-net-worth individuals for various reasons. Preparing for the CIMA Exams helps them develop the necessary skills to provide valuable guidance in these areas.

CIMA Qualification Levels 

The Chartered Institute of Management Accountants (CIMA) qualification is structured into several levels, each designed to build on the knowledge and skills required for a career in management accounting. Here are the main levels: 

1) CIMA Certificate in Business Accounting: 

The Certificate in Business Accounting is the preliminary step for the ones new to accountancy. There are not any formal entry requirements however you ought to have correct Math and English capabilities, ideally at GCSE grade C/four or above. At this degree, you'll examine the fundamentals of business economics, management and financial accounting, and ethics.  

The path typically takes approximately 12 months to complete, despite the fact that you could progress at your very own pace. The CGMA Certificate in Business Accounting is a standalone qualification and no longer necessarily needs to be observed via the Professional qualification. 

2) CIMA Professional Qualification: 

a) Operational Level: This is the initial stage of the CIMA Professional qualification. You can start at this level if you have completed the CGMA Certificate in Business Accounting, AAT Qualifications, AAT Professional Level 4, or hold a relevant degree in accountancy or finance. For any questions about exemptions, it’s best to contact CIMA directly.

At this level, you will learn about managing finance in a digital world, cost analysis in production, and financial reporting and taxation. This level typically takes around 12 months to complete, building on the Benefits of AAT Qualifications and enhancing your skills for further advancement.

b) Management Level: This level equips you with the skills needed for advanced management accounting and financial reporting tasks. You must have completed the Professional Operational level to start this stage unless you qualify for exemptions.  

You will learn how to manage companies using both internal and external tools, including business ecosystems, project management, and investment appraisal. Most students complete this level in approximately 12 months. 

c) Strategic Level: The Professional Strategic level is the final stage in becoming a Chartered Global Management Accountant. At this level, you will develop your leadership and management abilities and learn about risk management and financial strategy.
 

You can only undertake this level if you have passed the Professional Management level or completed the CIMA Gateway, and it usually takes around 12 months to complete. 

Advantages of CIMA Certification  

There are several reasons to consider obtaining a CIMA certification, including: 

1) Networking Opportunities  

Obtaining the CIMA certification can open up new networking possibilities via local chapters, country-wide meetings, and different events. Individuals with this certification are much more likely to obtain invitations to such occasions, which could cause employment or professional advancement possibilities.  

This permits you to connect to peers who can assist in improving your competencies and might also cause treasured mentorship opportunities. 

2) Flexibility  

The CIMA certification provides significant flexibility in both study options and career paths. You can study at your own pace, whether online or in person, allowing you to balance your studies with work and personal commitments. The knowledge and skills gained through the CIMA programme are applicable across various sectors, offering you the flexibility to pursue multiple career opportunities in finance, management, and beyond. 

3) Cost Efficiency  

Pursuing the CIMA certification may be a cost-effective option compared to other expert qualifications. The programme’s modular structure permits you to unfold the price over time, and there are various educational options available to match distinct budget. 

4) Access to Expanded Learning Options  

Remaining knowledgeable about modern-day traits in investment and finance is vital for professional fulfilment in an unexpectedly evolving industry. The CIMA programme gives acccess to sources that hold your talents up to date as new trends arise. Continuing education programmes like these can help you display understanding in key regions of investment management, inclusive of portfolio management, asset allocation, chance management, and performance size. 

5) Enhance Professional Credibility  

The CIMA vs ACCA debate often arises when choosing the right certification for a finance career. The CIMA certification is highly respected globally and equips you with the skills, knowledge, and experience needed to excel in various roles within the finance industry. Adding this credential to your CV or cover letter can highlight your expertise and significantly enhance your chances of securing more job opportunities.

6) Preferential Immigration Status  

Holding a CIMA certification can enhance your immigration prospects in certain countries. Many countries recognise the value of professional qualifications like CIMA and may offer preferential immigration status to certified professionals. This can open up opportunities for international career advancement and the ability to work in different parts of the world. 

How to Earn the CIMA Credential?  

The initial step towards obtaining your CIMA designation is to meet the eligibility requirements. For this, candidates must submit applications detailing their experience and qualifications, which the Investments and Wealth Institute reviews for approval.  

This process typically takes around ten days. The basic requirements for pursuing the CIMA credential include the following: 

1) Acquire Relevant Experience  

To obtain the CIMA credential, candidates must have three years of work experience in finance and investment management. Moreover, up to two years of full-time education can be counted towards this requirement. The institute only considers candidates with a clean record of ethical conduct in their workplaces. 

2) Obtain a Degree  

The minimum educational requirement for CIMA is a bachelor’s degree in finance or economics from an accredited university. Candidates must complete a qualifying course at one of four institutions: the Yale School of Management, the University of Pennsylvania, the Portfolio Construction Forum, or the University of Chicago. 

These programmes vary in their curriculum structure. For instance, some institutions offer the option to study online or in person. The duration of each programme also differs, ranging from five days to three and a half months. 

3) Pass the Exam  

The CIMA exam, which takes up to five hours to complete, requires extensive self-study preparation. It assesses candidates’ knowledge across nearly every aspect of investment management. To prepare for this exam, focus your studies on portfolio management, asset allocation, and financial statement analysis. You can appear for the exam online through a proctored service or at a local testing centre. The CIMA certification exam includes questions on the following topics: 

1) Basic Financial Skills: This section covers foundational knowledge of financial analysis, money markets, and statistics, making up about 15% of the exam. 

2) Investment: This section includes investment tools such as assets and equity, policies, taxes, inflation rates, and money markets, comprising about 20% of the exam. 

3) Portfolio Management: This section covers various topics, including portfolio management, portfolio theories, and investment philosophies, accounting for 20% of the exam. 

4) Risk and Return: This section addresses many aspects of risk and return, particularly performance management and risk attributes, making up about 20% of the exam. 

5) Portfolio Processes: This section includes content on ethics and regulations, constituting about 25% of the exam. 

4) Pursue Continuing Education  

To maintain their CIMA certification, candidates must complete 40 hours of continuing education every two years. The Investments and Wealth Institute permits candidates to earn up to six hours annually by attending meetings and events.  

Other ways to gain credits include reading publications and taking online courses from approved providers. Additionally, candidates can earn up to three credits per year through self-study or mentoring programmes. 

Conclusion 

In essence, What is CIMA? It’s your passport to a prestigious career in management accounting, offering unparalleled global recognition. By pursuing CIMA, you’ll gain the expertise to navigate complex financial landscapes and drive business success. Understanding the Functions of Management Accounting through CIMA’s framework will equip you with the tools necessary for effective decision-making and organisational growth. Ready to elevate your career? Begin your CIMA journey today!