Is CIMA for me? or CFA, ACCA

This is the 7th time I have been asked - Should I study for CIMA qualification or CFA or ACCA or the list goes on and on... I planned to save some time and direct people to read my blog. For the benefit of students who are used to reading academic books, I have tried to keep the style as dry as possible; comes to me easily as well.

So here it is.

CIMA is a management accountancy course offered by Chartered Institute of Management Accountants, UK. The course is intended to teach techniques required to advise management on direction and strategy for the company as well as providing support to the run the operations. The focus of the course is not so much on the technical or regulatory aspect of accounting. The full syllabus of the course is available on CIMA website (www.cimaglobal.com). CIMA has four level s of examination (and if the syllabus has changed again, it means I have become more experienced and a little old)

The course starts at foundation (certificate) level which is intended for students with no business background. If you are a business / finance / economics graduate, there is a probability that you might be exempted from the certificate level. This level covers basics of accountancy, business statistics, economics etc.

The second level is the Managerial level which equips CIMA students with knowledge to advise management and take decision (if you become a manager) on day to day operation of your business. The level covers 6 subjects – ranging from financial accounting, management accounting, operations management, organisational management, human resources management, marketing etc. What I like about the course is that it teaches general business frameworks and decisions models and reinforces that with case studies and exams till the cows come home.

The third level is the Strategic level which takes a broader view of the organisation as would be seen by senior leadership team and the board of directors. It teaches what controls are required to run the company, corporate governance, financial strategy (corporate gearing etc.), business strategy (e.g. positioning strategy vs. emerging strategy) etc.

The last level is the TOPCIMA. You are basically given a case of a random company few weeks before the exams to prepare. On the exam day you are given additional information about the company and what is required of you. You will generally be asked to advise the board of directors about the issues facing the company, possible solutions of the issues and recommendations. You will have to give comprehensive recommendation that includes time frame, financing, impact to workforce, possible impact to reputation etc. You will also have to include ethical dilemma facing the company.

If you intend to work for a company in a commercial capacity and your goal is to reach a senior management role, in my view this is a great course.

How is it different from CFA or ACCA?

CFA is a great course (and difficult) that specialises you in Finance. You will learn ways to invest money, join investment banking and earn a lot of money. If you are looking to progress into a more general management or CFO role, the course may not add sustained value (unless you grow in the investment banking type industries). It doesn’t teach you how to support organisational decision making or management of the P&L or reporting etc.

ACCA is a fantastic course that takes you into details of Financial Accountancy, GAAP, Taxation, Audit etc. It is similar to CIMA in the course content except that ACCA focuses extensively on regulatory accountancy, GAAP etc. but less on managerial accounting that support strategic decisions. If your career choice is to become an accountant or financial controller for a company this is a great course. ACCA can lead you to CFO’s role through a different route than CIMA. ACCA is not for you if you don’t like reconciling numbers, learning about IFRS & FAS, auditing, GAAP etc.

Whatever course you choose, qualifications help initially in your career. Regarding progression, once you reach middle management - your performance, your image, your exposure and your approach to others will decide whether you progress or not. It does not matter whether you are CIMA, CFA or ACCA at that stage.

I hope this is helpful in deciding what to study. All the best!

PS & Disclaimer: Not authorised by any organisation and please read with caution. Content may be unintentionally biased I ended up with a CIMA qualification.

Career Management my way

How should I manage my career? Where do I want to be in 5 years time? What is the best career line for me? etc. etc. I have never met a person who has proper answer to these questions and I am among the confused lot.

That said, there is something I know (that's what I think) which is different but provides foundation on which answers to the questions posed above can be based. What I know is not restricted to career or job but can be applied in personal life, education and career.

Let me put it in easy points -

1. If you choose to do a thing, strive to be the best. It doesn't mean to say you will turn out to be the best. But it will mean that you will be much above the average. You shouldn't study to just pass; you shouldn't work to be just good; you should not ain to be an average. And if you unfortunately find you still cannot be great in what you do, think harder - you might need a change. Eagles are great not when they run but when they fly.

2. Be Good to others (sincerely and intentionally). Success in life has never been one man's game for anybody. Then how do some people succeed magnificently and some fail miserably. Answer lies in the way they interact with others and the way they make others feel. Sincerely be good to others. Help them when they need and you can expect to be treated the same. (Principle of Reciprocation). Once you have start doing it, it becomes your second nature and you are always helpful. Then make sure you do more and for that be good intentionally.

3. Focus on your reputation: Reputation is a blend of lot of things. Both the topics discussed above play their part and add consistency, confidence and more interaction (networking) in the mix. Reputation is the best long term friend leading you to success. Now you know why companies invest so much on building brand.

4. Find your weakness and solve it. The first part is much easier that many think. Try saying what you are not good at or bad at. Examples-I cannot talk in front of many people; I am not confident; My English is weak; I am bad with excel; I have never managed anyone; How can I influence others? etc. etc. Make sure to focus on those that is hurting you or impacting you the most. Once you found your main weakness, get some advice. What I do is search for podcasts in Itunes relating to my weakness, download to my IPOD and listen while traveling. You can talk to your parents, your mentor etc. etc. Then practice. Now if you think you cannot talk infront of people, vocal cord wouldn't open, join a local toast masters club or public-speaking club. Just go and listen for few sessions. Gain some courage, prepare and talk about something you like the most for 1 minute. And I can tell you that the most effort is to get the wheel rolling, once you have done it, you just need to guide it.

5. Use commonsense: At times we feel pressured to act different because we are too educated or we are in competition. What we forget is that commonsense would have led us to a totally different route. With any big decision you think of making, it is worthwhile making time to think on the ground of commonsense. Disregard any popular notion or theory for a while. This way you are sure you have used your brain as well.

There could be many other things to focus on but hey this is what my commonsense tells me. And my commonsense tells me that if I try to focus on more than these many things - I wouldn't be able to proceed.
Hope this blog makes you think.


Copyright July 2009 Raghab Nepal