Definition: A Certified Financial Manager is a professional accounting designation for individuals who have passed the CFM exam and met the Institute of Management Accountants requirements. This designation is similar to certified managerial accountants, but with more of a focus on corporate finance than actual production logistics.
What Does Certified Financial Manager Mean?
The education requirements to become a CFA are fairly extensive. Candidates must complete a bachelor’s degree in accounting, finance, or degree with similar course work including financial and economic concepts related to managing and operating a business including management, managerial accounting, corporate finance, ethics, and decision-making. They must also obtain at least two years of professional or managerial experience. In addition to the formal education requirements, candidates must pass the four-part exam and the written communication requirements before accreditation is granted.
Certified financial managers typically become executive level operating officers because they understand how financial and accounting decisions affect business processes and the overall goals of the company. For example, they understand production schedules and the importance of supply chain management with regard to the corporate finances.
Most professionals pursue this certification after completing a different certification like the CPA designationhttps://www.myaccountingcourse.com/cpa/ in an effort to hone their skills and specialize in a certain area of finance. Most people who are certified in financial management are also certified in other areas of accounting and finance. Officially, CFA testing was stopped in 2007, although active professionals are still able to maintain their designation.