All About Certified Management Accountant

A CMA is a Certified Management Accountant, globally recognized credential with a special focus on corporate finance and management accounting. This is different from a Certified Public Accountant. A Certified Management Accountant is employed by a business firm or a not-for-profit organization, and deal with private accounting.

A CMA can obtain employment by companies, government, and non-for-profit entities. A CMA can obtain employment as a Bookkeeper, Payroll Clerk, General Accountant, Budget Analyst. And also as Cost Accountant, Internal Auditor, or Information Technology Auditor. These CMA careers have starting salaries ranging from $28,500 to $72,500, which is much higher than the salary range for CPAs.

A Bookkeeper does not need to have any certification, and therefore does not have to be a CMA. A Payroll Clerk must have certification called Certified Payroll Professional, or CPP, but does not need to be a CMA. A general accountant or budget analyst may not be required to be a CMA. However, many CMAs begin as a general accountant or budget analyst. A Cost accountant must be a CMA and be licensed by whatever state agency monitors and regulates accountancy in that state. An Internal auditor must be a CMA and have an additional certification as a certified internal auditor, or CIA. An Information technology auditor must be a CMA and also have certified information system auditor licensing, or CISA.

CMA Certification Program

The certification program to become a CMA is sponsored by the Institute of Management Accountants, or IMA. The CMA certification is proof of competence in management accounting. To receive a CMA certification, you must have a college degree, two years of experience, and pass a two day session of testing.

A CMA does not have the versatility of a CPA. Because a CMA works internally within a firm, the duties given to a CMA are fairly rote. That means that the CMA does typically the same work each day. On the other hand, a CPA has as much variety in type of work and work duties as the variety of the clients. It is due to this fact that most accountants choose to obtain a CPA certification and licensing rather than a CMA certification and licensing.

Cost Accountants

Most CMAs are cost accountants. A CMA cost accountant enters transactions into accounting records like journals and ledgers. CMA cost accountants also prepare financial statements. The financial statements that the CMA prepares are vital to the business. The financial statements that the CMA prepares are used for business decision making, investor decision making, competitive comparison, and searching for industry trends. A CMA must also attempt to discover and correct any errors in the cost accounting records. This can be done in a number of ways, but is always very tedious for the CMA.

A CMA should be found if you are starting a business that will require extensive and accurate bookkeeping and accounting. You can save a lot of money in your business by hiring a CMA in house rather than using a CPA on a fee for service basis. In this way, you are left free to run your business while someone else worries about the accounting for your business.

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Tax Help Can Save You From This Misery!

When it comes time to file taxes, you can look to software or a real live person. In this article, we are going to focus on living people that can provide tax help, to wit, the tax professional. You might be surprised to learn there are different types of assistance out there.

Tax Preparer

Generally, tax preparers have the least amount of experience when it comes to filing taxes. Tax preparers are individuals that are trained for the job or pick up the knack over time. An example of a huge collection of tax help prepares would be the people that work at H&R Block. The advantage of using a tax preparer is they are very cheap. Just keep in mind that you get what you pay for.

Enrolled Agents

The IRS actually licenses certain individuals if they pass scrutiny with the agency. Unlike tax preparers, an enrolled agent can represent you at an audit. Enrolled agents’ tax help is a step up from tax preparers, but the quality of work and knowledge varies from agent to agent. Some can be excellent because they have an interest in the work and stay on top of changes. Others are less impressive.

CPA

The Certified Public Accountant goes through a hellish process to obtain their license. Getting licensed as a CPA requires significant study and the licensing test is absolutely brutal. If you have a unique or complex financial situation, you want to use a CPA to do your taxes. In fact, you should use a CPA throughout the year to not only prepare taxes, but plan to avoid paying as much tax as possible.

CPAs are expensive with hourly rates in the $200 to $300 range. They can, however, be worth their weight in gold and a few of them are pretty heavy. When picking a CPA, you want to find a proactive one. A proactive CPA is going to talk to you about your life and finances. They are then going to make suggestions to significantly lower your tax bill. The savings typically far outweigh their fees, and you’ll be glad you hired them.

So, who should you pick? The answer is entirely dependent upon the sophistication of your finances. If you are salaried employee earning $50,000 a year, you don’t need a sophisticated tax planner. If you are a small business owner with three businesses, it is time to find a CPA.

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Types of Accountancy Career

Now that you’ve taken up a course in accountancy, you probably know that there are various types of accountancy career waiting for you after you’ve graduated. If you pass the CPA examination, you will have higher chances in securing a position as a professional accountant.

Accounting in itself is considered an art. It involves analysis and interpretation of financial data. Do you believe that individuals and businesses need accounting one way or another? Aside from business establishments, individuals also make use of accounting in their everyday life. For instance, when you compute or evaluate your expenses, income, and other financial information – that is accounting. Accounting is very important and because of that, it is considered an indispensable business tool. Big and small businesses, as well as individuals, need accounting.

Accounting is of several types and therefore, when you decide to look for an accountancy career in the future, you will notice that there also several types of accountancy career available.

Private Accountant

To start with, you can become an industrial or private accountant. In that case you do accounting limited to only one firm. If you choose this profession, you will only be serving one employer. You have to provide your best service and skills to your employer and in turn, the employer will remunerate you.

Public Accountant

The second accountancy career that you may be able to land is serving as a public accountant. If you’re already a CPA, you can serve the general public. You will be called a public accountant once there is already the so-called practitioner-client connection or relationship. Even those accountants who are not yet certified can already practice their profession. Oftentimes, CPAs join partnerships and they have a wide scope of clientele from the local area to the national and even international clients at times.

Government Accountant

Being a government accountant is another accountancy career. In this profession, you will be working for the government, whether local, state, or federal. The accounting methods used conventionally are also used in government accounting. You will make use of the method called double-entry systems and you will be using journals as well as ledgers. If you’re a government accountant, you will be focusing more in rendering service. Government units are not very particular with profits because they are put up to serve the public.

Fiduciary Accountant

Fiduciary accounting is another type of accountancy career. Here, accounting relies on trust. Executors, administrators, trustees, or any other person who is trustworthy can do fiduciary accounting. A fiduciary accountant keeps important records and he also prepares certain reports. The courts can authorize these fiduciary accountants to carry out their tasks.

National Income Accountant

The last is being a national income accountant. This type of accountancy career makes use of the social and economic concepts and not the concept of business entity. As a national income accountant, it is your task to provide a public estimate of the yearly purchasing power of a nation.

Now you know the different types of career in accountancy. To sum it all up, the five types are as follows: industrial or public accounting, public accounting, government accounting, fiduciary, and national income accounting. So, which of these five careers will you specialize in? You have to choose wisely because your future career will depend on it. While you’re still studying, you can already determine which career path to take.

Plan ahead because by doing so, you can reach all your goals in life.

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Successful Career in Accounting Even if You’re Hit Forty!

You’re never too old to dream of successful career, right? If it is your ambition to become a well-known and most sought-after accountant in the business industry, you can turn that dream of successful career into reality even if you’re 40 years + already.

If you started planning your successful career path when you were still younger, your dream is within your arm’s reach. In order to experience continuing success, you must have excellent knowledge in accountancy. You must work accurately and you should gather work experience through the years in the profession. Check these steps so that you can at least evaluate your situation right now:

1. You must excel in Mathematics – you must know how to manipulate numbers. Did you excel the subject when you were still in high school or college? As an accountant, you should love mathematics. If you hate it, then you’re not an efficient accountant and you’re bound to commit mistakes especially in the computation and analysis of financial data.

2. Suppose you’re not a graduate of accountancy and you’re already too old to attend classes in traditional classroom-based colleges. Don’t you worry because there are now online colleges that let’s you earn a degree in accounting from your very own home. You simply need an internet connection at home and then you have to comply with the requirements of the online college and that’s it.

3. Are you already a CPA? If you’re not, then you can also get a certification online. Comply with all the requirements and pass the exams and you can become a CPA.

4. State requirements vary when it comes to accounting degrees. You have to ensure that the accounting degree you’ve taken fulfills all the requirements of the sate you live in or in the state that you plan to have your accounting career.

5. There are different accounting fields. Are you already in the right career path? If not, perhaps it’s now time to change your accounting career. So which is it going to be? Government accounting, public accounting, internal auditing, management accounting, etc? Choose the one you really like.

6. Older adults are sometimes hard to teach but if you want to reach your ultimate goals, you must not stop learning. You have to become proficient in the accounting software used by the company that you’re working. There is a great number of accounting software out there and you must familiarize yourself with the software.

7. How long have you been in the accounting field? Have you been promoted? You have to take advanced accounting career studies so that you can become highly skilled and experienced in the profession. You will benefit a lot and promotions will come soon.

Have you looked at the steps carefully? By now, you can already tell if you still have a chance to reach your successful career goals or not. Age should not hinder your ambitions. Besides, by now you’re probably a senior accountant in the company and you’re earning big money. Still, if you’re not contented with your current position, you can always take advanced career trainings to improve and develop up-to-date accounting skills.

Don’t be left behind and don’t stop learning. Bear in mind that every year, new accounting graduates come on the market and you have to stay as competitive as ever to maintain your seniority in the office.

In any type of businesses, an accountant is needed. Accounting is in general the language in business. Having enough knowledge about accountancy is essential for business leaders to know how their company is doing. All this is why accounting professionals are in big demand right now and why one’s accounting career can be very successful. Thus, a lot of certified accountants have become quite successful in their field. And some have also started their own accounting business.

The great thing about accounting career is that it will enable you to interact with all levels of business, from analysts to top executives, and you will learn a lot from this.

Here is what does it take to become an accountant and follow this career.

HOW TO START

First of all, you need to know about the eligibility in becoming an accountant.

You need to be a graduate in a 4 year bachelor’s degree in accountancy or any related field. Aside from this, an accountant should be able to have good analytical and technical expertise in business systems (e.g. ERP). Good mathematical aptitude is also a must-have for accountants. And, of course computers are one of the most used medium in computing. You should also have knowledge and the operating skills of a computer.

Another requirement is that you will need a bachelor’s degree with a minor in another subject. You need to take it from an accredited college or university in order for you to apply for Master’s in accounting.

You can also pursue accounting career if you had your course in accounting over distance learning programs or through the internet.

Moreover, you will need an accreditation or license of certain organization. Such as being a CPA should have a license by the STA or the State Board of Accountancy. The other organizations are ACCA, CIMA, etc.

Additionally, you also should complete a number of semester hours as well as work hours. Those are considered for a 4-year bachelor’s degree. When you become a public accountant, you will start as a trainee. You will usually begin your accounting career as a junior internal auditor or as cost accountant.

If you have a master’s degree in business administration or an MBA, it can accelerate your accounting career. MBA is preferred by more companies who are looking for accountants as part of their employees.

WHERE TO PROGRESS

The great thing about pursuing accountancy as a career is that it presents a lot of career opportunities. For example, you can get a job as auditors or accountants in government offices or in private companies. Even if you do not have any license.

During the course of your accounting career, you can even get promoted to a position, such as the chief financial officer position, tax director or corporate controller, which presents a lot more great opportunities for your career.

You can also work in the legal office. You can work as an auditor, a financial officer, a budget analyst, a management accountant, and also as a tax accountant. Most companies that are looking for tax accountants will prefer accountants with legal background.

Forensic accounting is another promising career for accountants. Here, you will investigate crimes, such as fraud in company’s finances.

If you have a knack for teaching, you can teach a subject related to accountancy in college. This is a great career option and many accountants feel that this job is really fulfilling.

HOW TO GET THERE

Just remember that in this profession, you have to start slow. Accounting job is about the details, so you need to patient. If you are just beginning a career as an accountant, try to start as a trainee. Then work your way up to the accounting career path that you want to take.

Accountancy or accounting career is a very promising career that presents a lot of great opportunities. You can be sure that you will find the right career that you want if you take this type of career.

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TAX JOBS MARKET

DRIVERS OF A CHANGE

Tax jobs market has been significantly changed over the last few years. We faced a lot of legislation changes and initiatives taken by the governments and international bodies to tighten tax rules and to close the gaps. BEPS, CbCR, FATCA, US Tax Reform, new tax implementations providing VAT changes and  „Obesity Taxes”, and finally BREXIT and US election. So, all of this significantly impacted the old tax world we were used to live. On the other hand, fast development of tax technology and automated solutions put us in completely new situation. These changed the role and way how the modern tax department run.

Leading tax function became much more complex than just managing effective tax rate and tax compliance. We have to be project oriented and have experience in managing the projects. At the same time, continuously looking to make the overall process more efficient. Aggressive tax structures have became a taboo and nowadays tax planning has to be more „sophisticated”.

STILL A CANDIDATE DRIVEN MARKET

Lack of manager level candidates across the tax jobs market made most of the clients to look at different options. Either more senior or more often to go for juniors with growth potential. This partially impacted a decrease in salaries at the senior end.  At the same time, current focus on tax transparency has positive impact for candidates with high exposure to corporate tax compliance and reporting.

HEAD OF TAX

The role of Head of Tax evolved from managing ETR as the primary barometer of success to the overall quality of an In-house Tax department contribution.  Tax function must now interact with the business at the highest level. Acting commercially and thinking proactively at all stages.  Head of Tax must develop not only technical proficiency but also commercial, communication skills and the understanding of wider business initiatives.  All above had a positive impact on Head of Tax compensation, with increases in base salary across all sectors.

UK: up to GBP 340k + up to 50% bonus

EMEA: up to EUR 380k + up to 50% bonus

US: up to USD 550k + up to 50% bonus

TAX PARTNER

Demand for commercial and reputation risk management around Tax makes firms and their Partners to evolve in the same way as the Heads of Tax.  Demand for „aggressive” tax planning solutions has diminished. So, the focus for advisers is increasing on advisory and compliance work linked to tax transformation projects and commercial activity. Corporate and International Tax Partners engaged to deliver broad range of services. More closely integrated with related Consulting and Assurance Service Lines. Major growth area are Tax Reporting and Strategy. Technology increasingly offers opportunities to introduce efficiencies with respect to global Tax management.

UK: up to GBP 450k

EMEA: up to EUR 350k

US: up to USD 500k

CORPORATE TAX ROLES

Centers of Excellence are increasingly being used across the UK and EMEA giving a greater focus on controllership and oversight within group.  Tax departments are effectively partnering with business, thus demand for Corporate Tax in the EMEA region and in the US remains high.  Domestic and international businesses enhance their capability to satisfy the complex Compliance and Reporting requirements of the US Tax law.  Talking about the salaries, those have remained relatively stable. On the other hand,  rapid growth in Tax Operations and Technology drove professionals in these areas have enjoyed comparably larger increases in compensation.

Director: UK – up to GBP 140k

EMEA – up to EUR 150k

US up to USD 350k

Manager: UK – up to GBP 75k

EMEA – up to EUR 80k

US – up to USD 180k

TRANSFER PRICING ROLES 

BEPS and CbCR fundamentally increased the value of Transfer Pricing expertise. TP professionals enjoyed recently uplifts of 10-20% by moving/re-positioned internally, which increased importance and visibility of their skills. US and European TP professionals enjoyed strong demand for their skills throughout. Professional Services firms maintained large teams due to increased need for local advisers in order to support client projects globally. All that caused considerable investment in additional TP headcount In-house and increased compensation through market demand / internal adjustments to current market rates.

Director: UK – up to GBP 140k

EMEA – up to EUR 150k

US up to USD 300k

Manager: UK – up to GBP 75k

EMEA – up to EUR 80k

US – up to USD 160k

INDIRECT TAX ROLES

Indirect Tax market is a place of continuous change. The political upheaval of Brexit and the US election, EU laws surrounding BEPS, FATCA and the importance of managing Tax risk are driving significant transformation here. In Europe, companies have already started to model the impact of Brexit, including the future of many multinationals’ European Indirect Tax processing hubs. Economists are confident that the current UK VAT rate of 15% will stay well in to the 2020s.  UK’s trade agreements re-negotiation drove the companies to analyse potential changes to VAT rates and customs duties. At the same time, Tax Technology improves operational efficiencies and automates returns’ processing and filings. We noticed increased demand for top Indirect Tax talent across Europe. Furthermore, we expect Indirect Tax to be one of the main areas for business-critical hires over the next years. The salary for Indirect Tax talent will increase at all levels. In Asia demand for Indirect Tax specialists is increasing in both Professional Services firms and In-house. As part of broader tax reform, it appears likely that the US will introduce a VAT to offset a reduction in personal and corporate income taxes, aimed at stimulating investment led growth.

Director: UK – up to GBP 160k

EMEA – up to EUR 200k

US up to USD 275k

Manager: UK – up to GBP 70k

EMEA – up to EUR 85

US – up to USD 165k

PRIVATE CLIENT TAX ROLES

Private Client Tax expertise is in high demand globally.  Globally coordinated Tax, Wealth and Estate planning services as well as Family Offices and Wealth Advisory businesses value Tax capability as a component of their operations.  In the UK we observed a considerable growth for the last years, driven by changes in legislation (non-domicile rules) and Brexit.

Director: UK – up to GBP 140k

EMEA – up to EUR 140k

US up to USD 300k

Manager: UK – up to GBP 65k

EMEA – up to EUR 65k

US – up to USD 175k

UK TAX JOBS MARKET

Still the biggest tax jobs market in Europe. Last years brought steady increase in permanent tax roles, while slow down in temporary roles. The market moved towards more compliance and risk focused tax roles as well as review and compliance project management, rather than the hands-on computation work. Candidates with an interest in tax research and financial services tax operations are still in high demand outside the traditional corporate tax space. 

Radomir Graj

founder taxjobz.com

 

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