CMA Arif Farooqui

Before liberalisation of Indian Economy, career in finance was perceived as a back office record keeping job; but after the liberalisation it has become much more challenging and interesting. Today, it is seen as a career that provides greater roles in decision making, planning and controlling operations in any organisation.

Acquiring an appropriate professional qualification is the first positive step towards a successful career in Finance. In India the three professional bodies offering finance-related professional course are-

Institute

Course

Institute of Chartered Accountants of India Chartered Accountant – CA
Institute of Cost Accountants of India Cost & Management Accountant – CMA
Institute of Company Secretaries of India Company Secretary – CS

No doubt, Chartered Accountancy course has enjoyed wide popularity but CMA and CS courses too have been gaining popularity over the last few years. Particularly, growth in numbers of students enrolled for CMA is far more than any other course in India. This is because of cost awareness amongst the business entrepreneurs due to growing competition in the market, and this has resulted in increased demand for CMA.

Although all three course are good and guarantees a secure future but I would limit my article to “Career as a CMA” – as a lot have already been written about the other two courses.

Cost & Management Accountant (CMA)

A CMA is a person who performs services involving costing, pricing of goods and services, verification or certification of Cost Records and Taxation, especially in Indirect Taxation.

Unlike pure accounting professionals, the demand for CMA cuts across functions in all organizations. In marketing department, he is required to prepare the quotation, in production department he is required to advice on the profitable product mix, in purchase department for taking make or buy decisions and in top management for identifying business risks and their mitigation.

Not only are these, CMAs also working in the fields of Taxation, Valuation, Risk Management, etc. We may, therefore, say, CMAs are ALLROUNDERS rather than mere batsmen or bowlers.

 

Role of CMA in brief

  • Improving Cost Competitiveness
  • Resource & Performance Management
  • Financial Reporting and Strategy
  • Cost Audit and Assurance
  • Direct and Indirect Taxation
  • Internal Audit & Management Audit

Employment options

CMAs in Job

Earlier only Public Sector Undertaking (PSU) Companies offered job to CMAs, but in the last few years trends have changed. Now almost all enterprises/ companies show their interest in giving job to CMAs. It has shown in Institutes’ campus placement where, apart from PSUs, companies such as ITC, ICICI Bank, IDBI Bank, Wipro, Ashok Leyland, Ford etc. are regular recruiters.

Nowadays, with multi-product ventures taking place, it has become important to know and understand the exact cost of every product and service at different stages to minimize the expenditure incurred on them and to ensure optimum utilization of resources. This is where the role of Cost Accountant comes and that is the reason behind increase in demand of the CMAs.

As mention above, a CMA is an ALLROUNDER rather than mere a batsman or a bowler, -apart from cost related assignments, we find CMAs doing jobs as Manager – Taxation, Manager – Accounts, Manager – Credit etc in many companies. Many CMAs are holding top management positions, viz., Managing Director, Finance Director, Financial Controller, Cost Controller, Chief Internal Auditor, CEO, CFO etc.

Besides this, the Institute of Cost Accounts (ICAI) has entered into MoUs with many accounting bodies across the Globe which is creating job opportunities for CMAs abroad too.

Cost Accountants in Government Department:

Realising the importance of the profession of the Cost and Management Accountancy in the economic development of the nation, the Central Government has constituted an All India Cadre known as Indian Cost Accounts Service (ICAS) at par with other Class-I services such as IAS, IFS etc. to advise the Government in cost pricing and in framing the appropriate fiscal and tax policies. CMAs are eligible for Indian Cost Accounts Service/Job.

Cost Accountants in Education:

& University Grants Commission (UGC) has notified, CMA with First Class Graduation can be appoint as Assistant Professor in universities and colleges in the area of Management/ Business Administration.

& Various Universities (36 till today) have recognized CMA qualification for the purpose of admission in PhD in Commerce. It enables CMAs to pursue PhD without any master degree.

Practice as Cost Accountant

In the job market both professional accountant i.e. CA and CMA, are treated as equivalent. It is in the field of practice, in which CAs has more scope than CMAs but this situation is changing too, – all thanks to Notifications and Cost Orders issued by Ministry of Corporate Affairs (MCA).

Some of the services offered by practicing CMAs are listed below:

Maintenance of Cost Records

Every company on which Companies (Cost Accounting Records), Rules 2011 (CARR 2011) apply, (Covering Lakhs of Companies) shall keep Cost Records on regular basis and submit a Compliance Report, in respect of each of its financial year duly certified by a Cost Accountant, to the Central Government.

Cost Audit

Almost all organizations / industries engaged in Production, Processing, Manufacturing, Mining to which CARR 2011 applies are now covered under Annual Cost Audit (MCA order 52/26/ CAB 2010 dated 06Nov 12). Only Cost Accounts are authorized to sign Cost Audit Report.

Audit and other Work

The Cost Accountants are authorised to conduct audit and other as follows:

Value Added Tax

States have authorised Cost Accountants for auditing, certification of returns and to appear as authorised representative on behalf of their clients under the relevant Acts.

Central Board of Excise and Customs (CBEC)

1. Special Audit under Central Excise Act 1944, Customs Act, 1962 and Service Tax;

2. Certification of refund of Additional Duty of Customs (CVD);

3.    Certificate of Cost of production of captive consumed goods as per Rule 8 of Central Excise Act, 1944 in accordance with CAS-4.

4.    Certificate for Average Cost of transportation as per Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.

5.    Certifying Performa CI & C2 and Statement of cost of production under Anti Dumping as prescribed by Ministry of Commerce;

6.    As per MOU with CBEC, CMAs are authorised to act as facilitators under CFC Scheme in filing various Excise and Service Tax Returns.

7. Under Fixation of brand rate of Drawback without pre-verification – drawback rates should be duly verified by CA / CMA;

8. Under Customs & Central Excise Duties Drawback Rules, 1995, exporters should furnish a certificate from CA / CMA as to consumption and cost of processing chemicals used for its processing;

Ministry of Corporate Affairs (MCA)

& MCA has authorized CMAs for certification of returns and various forms required by a company from its Incorporation to Liquidation. CMAs are also authorized to appear as authorized representatives on behalf of their clients before Company Law Board.

&  Ministry of Corporate Affairs, have authorized CMAs in practice to act as Certifying Filing Centers on their behalf for purpose of certification of various type of e-forms and their filing with Registrar of Companies periodically as per provisions of Indian Companies Act, 1956 and Limited Liability Partnership (LLP);

Foreign Trade Policy

CMAs can certify DGFT Documents under Foreign Trade Policy. Under the EXIM Policy and Procedure, CMAs can certify all Documents which are required by Exporters.

Securities Exchange Board of India (SEBI)

Half-yearly Internal Audit of Stock Brokers and Credit Rating Agencies as prescribed by the Securities Exchange Board of India (SEBI)

Central Board of Direct Taxes (CBDT)

Parliament Standing Committee has suggested inclusion of Cost Accountants in “Accountant” definition under Direct Tax Code. This will authorized CMA to do Tax Audit.

National Securities Depository Ltd (NSDL)

Internal and Concurrent Audit for depository operations under National Securities Depository Ltd (NSDL)

Insurance Regulatory and Development Authority (IRDA)

Certification of Application for License and renewal thereof to act as Surveyor and Loss Assessor under Insurance Regulatory and Development Authority.

Central Electricity Regulatory Commission (CERC)

Certification of various forms prescribed under the Central Electricity Regulatory Commission.

Reserve Bank of India

  • & Compliance Audit for the purpose lending under Consortium Arrangement / Multiple Banking Arrangements, banks are required to obtain regular certification from professional like CMAs regarding compliance of various statutory prescriptions that are in vogue.
  • Stock Audit and Concurrent Audit of many Public Sector and Private Sector Banks.

Telecom Regulatory Authority of India (TRAI)

  • Legal Representation before Appellate Tribunal as per Section 17 of TRAI Act,1997
  • Reporting and Audit for System on Accounting Separation – Certification Work
  • Audit for Metering and Billing Accuracy- authorized to conduct audit

Directorate of Advertising and Visual Publicity (DAVP)

CMAs are authorized for certification of various forms prescribed under Directorate of Advertising and Visual Publicity (DAVP).

Various Ministries of Government of India have authorized CMAs in practice for certifying various returns and to issue Compliance Certificate as per their formats. Such ministries are

  • Ministry of Finance,
  • Ministry of Commerce,
  • Ministry of Corporate Affairs,
  • Ministry of Chemicals and Fertilizers,
  • Ministry of Textile,
  • Ministry of Consumer Affairs,
  • Food and Public Distribution

Others

  • Empanelled by many Public and Private Companies and Cooperative Societies as Internal Auditor for auditing financial books of accounts.
  • Apart from above services, Central & State Governments, Companies, Banks have empanelled CMAs for variety of work such as Cost Management, ERP, Financial Management, Project Consultancy, Materials Management, Tax Planning, Revival of Sick Units, Incentive Plans, Energy Audit etc.

Even after all this, one may not agree that scope in Practice is equal for both CAs & CMAs. I would like to say one thing, there is no doubt that CAs have more scope in practice as even a General Stores requires Tax Audit but the number of practicing CAs are far more than this and in CMAs, work-to-be-done is more than practicing CMAs.

In today’s world, apart from Degree / Qualification, one should have below mention qualities in his personality to have successful career as CMA.

  • Effective Communication & Negotiation Skill
  • Patience (especially in practice)
  • Punctuality (that I need to improve)
  • Leadership Skill
  • Passion for learning. It is more required in case of practising CMAs, as they themselves says – they are doing practise (means still learning) no matter how many years they have spent on practice i.e. learning.

Lastly, a Qualification / Degree is just a passport, to be eligible for getting Working Visa of a developed country (i.e. employment in good company), one must have PASSPORT with the above mention qualities in his shape of his personality. Sources:

  • www.icwai.org  
  • Orders and Circulars issued by Ministry of Corporate Affairs 

(Author can be reached at arif_cwa@yahoo.co.in)

More Under CA, CS, CMA

Posted Under

Category : CA, CS, CMA (3652)
Type : Articles (16256) Featured (4128)
Tags : CMA (330) CMA Arif Farooqui (10)

22 responses to “Career as Cost & Management Accountant”

  1. Nitish kalka says:

    Thank you for the detailed explanation.it was rather motivational and inspiring in an atmosphare where people compare this course with CA directly when they both have diff roles and work area.

  2. Rishi Raj Chakraborty says:

    Hello Sir, I’m a CMA inter student. Your article was very knowledgeable. Thank you so much for the information that you have provided to all upcoming cma’s. I found it very helpful. Thank you.

  3. Nikita Prasad says:

    Thankyou for furnishing these information regarding CMA, its very much beneficial. I am going to appear for CMA inter in DEC. 2017. From the point of job prospect i would like to know that what goverment job can I have access on after becomming a CMA also if there is any scope in RBI for the same. kindly help me with a detail description of it.

  4. Dibakar says:

    Sir I am ami b.com graduate.. I want to know that what will be the opportunity for me….. And what kind of salary expect due to the practice prio….?

  5. rajkumar says:

    My age is 40 years and I am a CMA having experience of 4 years with a gap and just complete CMA what are scope and options for me please advise me

  6. vipan kumar says:

    I m CMA inter 2 student .. I keep in mind all aspects sir thnxx

  7. teju says:

    Thnkx a lot

  8. Suman Biswas says:

    I am a student cma foundation. and i am from arts background. I passed my Higher Secondary exam on 2011 and i will appear for foundation December 2015 so can u tell me that when I will complete CMA final will i face problem to get a job coz my year drop? pls reply me as soon as possible.

  9. CMA Ahmad Adnan Khan says:

    Really a nice article sir.Quite motivating for the students, as well as the young Professional.All the key points were discussed briefly.

  10. vansh raj chauhan says:

    Sir I am really passionate about this professional course but I am little bit confused to opt it as a carrer or not. Please clarify my doubts as soon as possible. Thanks

  11. akash says:

    Dhanya vad bt cma final me maths hai ki nai guru ji

  12. Gurjant says:

    Dear sir give me information what have to be done after passing out cma final to go to abroad cause i want make my carier abroad only

  13. B.S.K.RAO says:

    AUDIT IN COMPANIES ACT IS A COST, FINANCIAL & MANAGEMENT ACCOUNTS AUDIT. HERE ONLY CMAS BE ALLOWED TO FURNISH THE SAME (ANNUAL REPORT PRESUMED TO BE UNDERSTANDABLE BY MEMBERS OF PUBLIC INDICATES THE SAME). REASON BEING CAS ARE AUTHORISED TO WORK IN THE AREA OF FINANCIAL ACCOUNTS ONLY. WHEREAS IN INCOME-TAX ACT, IT IS A TAX LAW AUDIT. THEREFORE ALL PERSONS AUTHORISED TO PREPARE RETURN UNDER RULE 12A READ WITH SECTION 288(2) OF INCOME-TAX ACT, BE ALLOWED TO FURNISH TAX LAW AUDIT REPORT U/S 44AB. HERE MORE STRESS GIVEN TO INTERPRETATION OF LAW. THEREFORE, DECISION OF LEARNED OFFICIALS IN FINANCE MINISTRY TO EXPAND THE DEFINITION OF ACCOUNTANT IN DTC TO INCLUDE RELATED PROFESSIONAL IS APPROPRIATE. I MIGHT HAVE USED THE WORD MOST APPROPRIATE, IF TAX ADVOCATES AND INCOME-TAX PRACTITIONERS WERE ALSO INCLUDED IN DEFINITION OF ACCOUNTANT IN DTC-2013. AS CBDT COULD NOT GET SECTION WISE WRONG CLAIMS IN TAX AUDIT REPORT FURNISHED BY CAS SINCE 1984 TO CONCLUDE QUALITY ASSESSMENT, WHY 2ND OPINION ABOUT EXPANDING THE DEFINITION OF ACCOUNTANT IN INCOME-TAX ACT/DIRECT TAXES CODE.

  14. zaheer says:

    i have appeared intermediate 2nd year MPC exams and waiting for results.
    can u please advice where shall i get the colleges in andhra pradesh to study this CMA course. please advice.
    thanks zaheer

  15. Narendra says:

    Please let me know which has higher recognition in India – CMA(US) by IMA or CIMA UK?

  16. Arun says:

    Can a practising cost accountant be also a insurance advisor and receive Renewal commission . Please make a reply to aruncma@hotmail.com

  17. CMA Jagrati Gupta says:

    sir thanks for givving us such imp knowledge…. pls give me some information about governent services in field of commerce….

  18. mayur says:

    if u have any opeing for cma inter student in mumbai pls let me konw

  19. OM PRAKASH says:

    Thanks for sharing valuable information

  20. Aniket says:

    Thanx for summerised info…
    Jay Hind !!!

  21. Rajesh V. Thakur says:

    Dear sir,
    Please give me information about GST. How to calculate GST. Give me recent best book name with author.
    I am waiting your reply.

    Thanks
    Rajesh Thakur

  22. Kamlesh says:

    well explianed and summarised the key points..nice

Leave a Reply

Your email address will not be published. Required fields are marked *