HOCK Study Path Series

R. Ananth Narasiman is an Associate Analyst at Big 4 company, a participant in the HOCK Study Path Series, and a HOCK CMA student. In this blog, he shares his firsthand experiences of applying the CMA certification concepts directly to his finance role, detailing how the skills and knowledge acquired have enhanced his analytical and decision-making capabilities in the workplace. Through practical examples, he illustrates the relevance and impact of CMA training in real-world financial strategies and operations, providing valuable insights for both current and prospective CMA candidates.

Introduction to CMA’s Role in Finance

My current job role revolves around the field of Finance, Planning, & Analysis, which aligns with the CMA certification, although it doesn’t utilize all the concepts that the certification provides. I have personally come across concepts from the subjects of ratios and decision analysis in my current job role.

Applying Financial Ratios in Real-World Scenarios

From the subject of ratios, identifying the Gross Profit Margin and Day Sales in Receivables has been crucial. The firm always tries to enter into engagements which will help them recognise revenue in the form of profits, therefore initially when the company tries to bring in new projects, they usually look at the Engagement Profitability. My role involves providing forecasts to the leaders to maintain their profits as decided during the planning phase across the project’s tenure, or anything above the predetermined margin would be well appreciated by the leaders. When it comes to Days Sales in Receivables, maintaining the ratio below the firm thresholds has been one of the roles. To maintain this, we need to initiate and process billings from the clients in a timely manner, as we usually have a lot of pushback from them.

The Importance of Breakeven Analysis in Decision-Making

Another such instance or topic that has been useful is the Breakeven Even Point (in dollars) analysis. With regards to this, accuracy plays a crucial role, as the metrics of engagement keep fluctuating, with expenses and employee hours being very volatile from one week to the other. A Breakeven Point must be reported to let the leadership know how an engagement is presently trending and suggest the required deviations so that the leadership can devise a strategy for the same based on the insights provided.

CMA Certification: A Gateway to Diverse Financial Careers

The CMA certification makes the candidate “market ready” because of possessing diverse knowledge across the fields of Core Audit, Financial Planning & Analysis, Risk & Advisory and even Investment Banking while possessing the required skill set along with relevant work experience. I see investment banking as a field as a “road less taken” by the presently qualified CMAs where topics of Part 2 are extensively helpful when it comes to the units of Investment Decisions and Corporate Finance, which imparts significant knowledge to enter this field. The knowledge gained from Financial Statement Analysis and Corporate Finance helps one to enter the Core Audit while Ethics also plays a vital role for the candidate to venture into any of the fields or disciplines.

Guidance for Aspiring CMAs

The advice which I would provide to anyone who is pursuing the certification would be to stay consistent and determined throughout the journey. Planning also plays a crucial part in clearing the certification along with having in-depth conceptual clarity before taking the exam. The positive side of the certification is the extensive knowledge you gain, which will make you feel grounded with the amount of knowledge that exists. Once you develop an interest in learning, it will be one of the most interesting things you will ever learn, and you will be on your toes to impart the knowledge gained on real world scenarios. The drawbacks to this would be the journey which you go through where keeping your morale up becomes difficult on the bad days. The marking scheme is not provided by the IMA to the candidates. The cost to pursue the certification is also relatively higher, where affording to give multiple attempts becomes a luxury. On that note, I would like to draw a conclusion by saying that the pros outweigh the cons and pursuing the US CMA certification will surely reap your rewards once quailed and after gaining the right skills.

If you are ready to pursue your CMA career and eager to start studying, we encourage you to begin with our 7-day free trial. The HOCK trial provides comprehensive access to all CMA study tools and materials, offering an excellent opportunity to explore our study system and determine if the CMA certification is the right fit for you. Take advantage of this chance to engage with our resources and see how they can help you achieve your professional goals.