What is Certified Management Accountant (CMA) Salary in India?

Students are turning to cost accounting to earn handsomely in their professional careers. For a fresher, the average annual income for a certified management accountant (CMA) in India is ₹2,50,000. As you gain experience and knowledge, your salary will increase. If you hold the highest position within an organisation, as a CMA, you can earn a salary of up to ₹50,00,000 per annum. CMA has seen a rise in popularity over the past few years. Here we will also explain the differences between CMA and CA (chartered accountant).

Did You Know?

CMAs sometimes work closely with C-suite managers and executives to offer financial guidance, as they are experts at making financial decisions. Hence, an elevated role occasionally translates into greater earning potential.

Also Read: What is the Salary of a Chartered Financial Analyst (CFA) in India

An Overview of CMA Salary in India

CMA jobs abroad and in India have been highly sought after. There are many job options for graduates, and some CMA graduates have the opportunity to build their careers in finance, management, accounting, and research. CMA salary in India is approximately ₹2,50,000 per annum.

This may vary depending on the work that the graduates are required to do. There are many jobs in the cost management accounting field in India or abroad, and it is also very competitive.

Cost Management Accounting Recruitment

CMA graduates can be found in different fields and industries. Indian and international companies prefer CMA graduates as they can excel in their respective fields. The following areas are suitable for CMA graduates:

• Research
• Management
• Finance
• Accounting

CMA Salary in India - Packages Explained

CMA Salary in India, in both the private and public sectors, is approximately ₹2.5 lakhs PA to ₹7 lakhs PA. This means that the average CMA salary in India is ₹4.5 lakhs PA. Therefore, there is a wide range of jobs available for CMA graduates with decent salaries. Based on the area of recruitment and the skills of graduates, the salary packages may vary slightly. The following are some of the most desirable CMA jobs in India.

Average Salary of CMA in India for Private Jobs

CMA jobs are available in both the public and private sectors. CMA graduates earn an average starting salary of ₹5 lakhs PA. These are some of the CMA job openings in the private sector:

CMA Salary in India for Government Jobs

CMA graduates can find jobs in nearly every government sector with good salaries. The job opportunities in India after completing the CMA program are highly rewarding. These are some of the most prestigious CMA government jobs. These salaries are according to the statistics gathered in 2022. In the upcoming years, there can be changes in the salaries.

Also Read: Chartered Accountant or CA Salary in India

Role of a Certified Management Accountant

As a certified management accountant, you will be responsible for tracking the company's expenses and incomes. Certified management accountants can work in public companies, private companies, or government agencies. The daily tasks of a certified management accountant include budgeting, recording numbers, strategy, and decision making. They prepare data for internal use. The following information illustrates the separate role of a certified management accountant.

1) Performance Management

CMAs are responsible for analysing the performance market in the firm's financial sector and improving the performance of their workforce. They are responsible for determining the organisation's structure and assigning responsibilities.

2) Cost Management

CMAs are responsible for managing the entire process of budget planning and control. They assist businesses in predicting future expenditures and help to reduce the risk of running over budget. While the project is still under planning, they calculate the expected cost.

They keep track of these expenses and monitor them under the supervision and control of a CMA to ensure that they are in line with the cost management plan. To ensure that their budget is under control, they also create a cost management system and conduct proper research on projects.

3) Analyse profitability

CMAs conduct profitability analyses by studying specific ratios based on the purpose of the analysis. CMAs construct profitability ratios by dividing profits or equivalent values by revenues, assets and expenses. Also, CMAs must have knowledge of the following: return on assets, profit margin, return on capital used and return on equity.

4) Internal controls

CMAs are responsible for implementing rules and procedures that ensure accountability and financial integrity and prevent fraud. They manage the compliance of laws and regulations at work and prevent employees from stealing or committing fraud. Additionally, they help improve operational efficiency and financial reporting accuracy by improving accuracy and timeliness.

5) Investment decisions

CMAs are responsible for making important investment decisions regarding allocating funds to investment opportunities. They must choose an asset or investment proposal that will yield long-term returns. They must also analyse the proposal's uncertainty and potential risk. They determine the minimum rate of return that can help evaluate the performance of the long-term project.

Types of Certified Management Accountants

There are many sub-disciplines that students can choose to pursue a career as a certified management accountant. A certified management accountant can be a decent career alternative for students. Below are the sub-disciplines that make up a career as a certified management accountant.

1) Financial Advisor

A financial manager is responsible for ensuring that potential investments are financially sound. A financial manager also has responsibilities such as advising companies on splitting stock or issuing corporate bonds and performing financial research and analysis that provides information about business stability, profitability, and liquidity.

2) Manager Accountant

A major sub-discipline in a career as a certified management accountant is the management accountant. This career requires students to be able to plan and strategise. However, accountants will need to be able to budget, plan and strategise. It will also help company managers make financial decisions regarding the company's future.

3) Chartered Accountant

A chartered accountant is the most well-respected job in sub-disciplines, as Certified Management Accountant. It is a well-recognised job in India, and Indians who are members of the ICAI (Indian Institute of Chartered Accountants) are eligible to become chartered accountants. Auditing financial statements, corporate tax returns filing, and financial advice are all part of the job.

4) Accounting Manager

Accounting managers are responsible for developing and maintaining systems and procedures that allow others to assess and collect data. It is important to be aware of other accountants and work in large industries where there are many accountants.

5) Cost Accountant

A cost accountant's job is to track and analyse every cost that a company incurs. This allows it to identify areas where the company is losing money and improve its financial management.

Conclusion

Some people find that studying for the CMA exam during college is the best route. They plan to work for two years and then get their official designation after the experience component. Some people want to get work experience and decide if the CMA route suits them.

CMA may be easier for experienced accountants who have greater knowledge.
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