A certified financial manager (CFM) is a management accountant who has been accredited the Institute for Management Accountants. Although the designation is widely regarded as a standard certification in the industry, whether or not individuals require it varies from one employer to the next. Rather than preparing people for jobs as investment analysts or portfolio managers, the certified financial manager program prepares people to work in small businesses.
A bachelor’s degree is required, as well as passing the exam, to become a certified financial manager. The exam is made up of 110 multiple-choice questions that are usually administered using a computer. The computer will score the test right away, so test takers will know if they passed right away after finishing the entire exam. Those who pass the exam will receive the certification of certified financial manager. It is not necessary to have a financial management degree or any formal financial management training to take the test, but it may make things easier.
Individuals can use a variety of study guides designed to adequately prepare them for the test in order to prepare for it. A popular exam preparation kit is offered the Institute of Management Accountants. This kit was created the same people who created the test. This could make it one of the most beneficial guides. It is not necessary to purchase the kit in order to take the exam; however, if candidates have never taken the exam before, it may provide them with a good idea of what to expect.
A certified financial manager is regarded as one of the industry’s top experts. As a result, those who hold the title may find themselves with more opportunities for advancement. It may also assist that person in attracting more clients. Even clients who are unfamiliar with the program may feel more comfortable entrusting their money to someone who has received such a professional designation.
A certified financial manager differs from a certified public accountant in several ways. Despite the fact that both are industry standards, the tests are different, and CPAs must have completed a certain number of hours in related coursework. Furthermore, a government’s licensing board, such as a state’s, often determines the CPA designation. A private organization that promotes professionalism and ethical practices in the field administers and monitors the CFM program. CPAs are eligible to skip a portion of the CFM exam.