What is the full form of CFM?

Introduction

Certified Financial Manager (CFM) is a professional who has undergone a certification process to verify their competence in various financial areas, such as accounting, financial analysis, risk management, investment management, and financial planning.

Due to their expertise in managing intricate financial challenges and making sound financial decisions, CFMs are highly sought-after in the corporate world. In this article, we will discuss the requirements for obtaining CFM certification, the advantages of being a CFM, and the career paths available to those who hold this credential.

Benefits Of Obtaining CFM Certification

Obtaining a Certified Financial Manager (CFM) certification can bring numerous benefits to finance professionals. Here are some of the most significant benefits of becoming a CFM −

• Improve your knowledge and abilities − The CFM certification procedure necessitates a thorough comprehension of financial management ideas and tenets. You can use this information to make wiser financial decisions and confidently handle challenging financial challenges.

• Increase your credibility − Getting a CFM certification might make you more credible in the eyes of clients, employers, and other professionals. It shows that you are dedicated to continuing your professional growth and have attained a high degree of skill in financial management.

• Increase your job options − The CFM certification may lead to new prospects in management, finance, and accounting. Companies value the CFM designation because they understand its value of it.

• Join a professional community − Holders of the CFM certification are part of a large international network of financial management experts. You can gain access to helpful tools, networking opportunities, and continuing education programs through our community to keep current on the most recent financial management trends and best practices.

Process of Obtaining CFM Certification

The following stages must be taken in order to become a Certified Financial Manager (CFM) −

• Meet the prerequisites which are often a minimum level of education (such as a bachelor's degree) and work experience in financial management (such as two years).

• Enrol in and succeed on the CFM exam provided by the Institute of Management Accountants (IMA). The exam is divided into two parts and covers subjects like corporate finance, budgeting and forecasting, risk management, and financial statement interpretation.

• Accept the IMA's code of ethics and pledge to keep your membership active

• Fulfill continuous requirements to keep your certification, for continuing education.

Career Opportunities Of CFMs

CFMs are in high demand in the financial industry and have a variety of job opportunities available to them.

• Financial Manager − CFMs can work as financial managers and oversee financial operations, develop budgets, and make financial decisions.

• Investment Manager − CFMs can choose to work as investment managers and oversee investment portfolios, assess risk, and determine which investments to make.

• Risk Manager − CFMs can work as risk managers and identify and assess financial risks, develop risk management strategies, and evaluate the effectiveness of risk reduction activities.

• Financial Analyst − CFMs are capable of performing the duties of financial analysts, including analyzing financial data, producing financial reports, and advising clients on financial matters.

• Controller − CFMs can work as controllers in public accounting firms or private businesses and supervise accounting and financial reporting processes.

• Chief Financial Officer (CFO) − CFMs can advance to the position of CFO through training, experience, and leadership abilities, and oversee a company's financial operations to promote expansion and profitability.

Success Stories of CFMs

Certified Financial Managers (CFMs) have a record of successful careers, gaining professional recognition and advancement through their expertise in accounting and financial management. Here are some notable CFM success stories −

Julie L. Stackhouse

As a former executive vice president of the Federal Reserve Bank of St. Louis and CFM, Stackhouse has been recognized for her contributions to the banking industry, being named one of American Banker's top 25 women in finance in 2019.

John A. Kosar, CMT, CFM

Kosar, a CFM and principal investment strategist at Asbury Research LLC, has over 30 years of experience in financial research and investment management. He has been featured in various media outlets, including CNBC, Bloomberg, and Reuters.

Helen Drexler, CPA, CMA, CFM

Drexler, a CFM and CFO of Purdue Pharma, has held executive positions at IBM and Deloitte and has over 20 years of experience in finance and accounting. She credits her comprehensive understanding of financial management to the CFM certification, which has facilitated her professional growth.

Bill Kelly, CPA, CMA, CFM

Kelly, a CFM and CFO of Phillips-Medisize, has over 25 years of experience in accounting and finance, with expertise in financial planning and analysis. According to Kelly, the CFM certification has equipped him with the necessary tools to excel in his role and has opened up various career options.

Conclusion

In conclusion, the CFM certification is known to provide finance and accounting professionals with the necessary knowledge and skills to succeed in various roles within the industry. Through the certification process, individuals gain access to a network of experts and tools to aid their career growth and keep them updated on market developments. The achievements of successful CFMs like Julie L. Stackhouse, John A. Kosar, Helen Drexler, and Bill Kelly showcase the benefits of obtaining the CFM certification in terms of career advancement and professional recognition. Although the CFM certification requires hard work, the potential rewards for those seeking to advance their careers in finance and accounting are significant.

FAQs

Q1. How much time does it take to become CFM certified?

Ans: Depending on the candidate's background, education, and experience, the CFM certification process can take a while. Yet the procedure usually takes a few months to a year.

Q2. What is the cost of CFM certification?

Ans: Depending on the person's region and level of Institute of Management Accountants membership, the cost of CFM certification varies (IMA). Nonetheless, the overall price is between $1,300 and $1,800.

Q3. What distinguishes the CFM certification from other financial credentials?

Ans: While other financial certifications could cover a wider variety of subjects, such as investments or risk management, the CFM certification concentrates primarily on financial management and accounting.