Why is the CFM Important to an Accounting Major

by Jim Rigos, CFM, CMA, CPA, JD, LLM.

 

Why is the CFM important to an accounting major?

Rick Swanson, the CEO of the IMA, asked the question, "where have all the accountants gone?" The answer is that we are still here, but business people now call us financial analysts, strategic planners, budget analysts, and the like. These new titles are a reflection of a fundamental change brought about by two factors.

First is the effects of the computer. Many of the compliance focused tasks are now done mechanically by a computer. Twenty years ago most accounting was still done primarily manually. The 1980 and 1990's technological improvements generally, and the computer spreadsheet applications specifically, have made obsolete most of the manual accounting functions.

Second, the role of an accountant in business has broadened. The logical extension of accounting skills is into the financial management field. Included are such functions as cash management, ratio analysis, ROI measurement, portfolio decisions, risk analysis, security offerings, SEC rules, IPOs, and financial planning. These areas have always been close to accounting.

The result is a new blended role involving both accounting and finance in a business. Neither the CMA nor the CPA is focused directly on these topics yet this new blend is clearly what the international corporations want. The new CFM is designed to recognize expertise in these areas. A thorough study to prepare for the exam takes about 80 hours. Many of our students have described our CFM course as a "mini-MBA with a finance concentration". Not a bad description for a pretty good exam.