Do I Need Strong Mathematics Skills to Study CMA? The Truth Many Students Need to Hear
Each year, many commerce students enroll in different professional courses that can help them achieve success in their life as financial managers, accountants, and businessmen. Amongst these professional courses, there is only one that excels in terms of its practical application and career prospects. This is none other than CMA (Chartered Management Accountant).
But, a certain doubt emerges amongst students each time during their guidance session, workshops, and career counseling. And, the doubt is, "Do I need to be good at mathematics in order to pursue CMA?" It seems odd as the question is being asked by those who are aiming for careers in finance and accounting.
There were quite a few number of students who although proficient in commerce, did badly in math. There were also those who did exceedingly well in mathematics but did not like this subject. Most of these students gave up on their desire to pursue CMA as they considered themselves weak in mathematics.
And, from my experience, this is the biggest myth regarding CMA. However, what will be the answer to this question? Certainly not.
Why Students Often Fear Mathematics
Yet, the fear of mathematics usually starts much sooner before the students start thinking about their career prospects. Mathematics is a subject, and in general, it is associated with complicated formulas, calculations, computations, and anxiety prior to taking exams by the students.
The graduates from the Plus Two class will definitely think that working with finances means dealing with tough math on a regular basis. It is completely natural. Indeed, once the notions like accounting, financing, budgeting, costs analysis, or finance management appear in the conversation, the only thing people think about is problem-solving.
However, it is not really like that. First of all, the best financiers usually devote much more time to data analysis than math problem-solving.
What CMA Really Focuses On
Among the reasons that have helped CMA to continue drawing many learners from all over the world is the fact that it focuses on the field of management accounting and decision making within a business organization.
The main objective of CMA is to ensure that learners gain knowledge regarding how business organizations manage their finances and how they undertake cost controlling, performance evaluation, budgeting, and decision-making.
When assessing the subject matters under the CMA curriculum, one will notice that the focus is not on complicated mathematics. Instead, the emphasis is on ensuring that learners grasp business concepts and apply financial knowledge properly.
In CMA, students undertake subjects such as financial planning, performance management, budgeting, risk management, cost analysis, and corporate finance. These areas do involve numbers, but the most important thing is being able to interpret and apply the numbers properly.
Mathematics vs Analytical Thinking
One of the misconceptions held by many students is that mathematics and analysis are the same thing. There are relations between the two, but they are different terms altogether.
While a student may face problems handling complex algebraic calculations, there is someone who can handle analytical questions well. However, there will be another student who is good at mathematics but bad at analyzing business situations and offering advice.
CMA values analytical skills very much. For example, when there is a company realizing that its expenses have increased by fifteen percent in a year's time, it is not hard to calculate the amount increased since it is quite easy to calculate using computer software. The problem comes when trying to figure out why this happened and what solutions to offer.
The Type of Mathematics Used in CMA
Students are often relieved when they discover the actual level of mathematics involved in professional accounting and finance studies. Most calculations encountered during CMA involve concepts that students have already studied in school.
These may include:
- Percentages
- Ratios
- Basic algebra
- Profit and loss calculations
- Financial comparisons
- Interest-related calculations
- Budgeting calculations
- Cost analysis
- Variance calculations
The mathematics is generally practical rather than theoretical. You are not expected to solve highly advanced engineering equations or perform university-level mathematical proofs. Instead, you are expected to understand how numbers influence business decisions. This is a very different skill set.
Real Industry Expectations
Employers now seek the services of finance professionals who can help them grow and make decisions. While seeking CMAs, employers definitely will not consider finding mathematicians.
What they seek are finance professionals who can analyze the financial statement, evaluate performance and budgets, find ways to improve, and communicate financial matters effectively.
It is possible that a finance professional may discuss profitability, efficiency, risks, and investments over the whole period of discussion. It all has to do with business, but nothing at all with mathematics.
Indeed, in many cases, the generation of financial statements is done by computers automatically. The finance professional simply analyzes the data and influences decision-making processes.
Why Average Mathematics Students Often Succeed
And probably the most impressive thing that I have found is that there are a lot of successful financiers who were once only average math students.
True, although they were not the best students when it came to writing their math exams, yet, they had something else – persistence. Persistent people get better results during certification processes.
Attendance to classes, application of knowledge gained, asking questions and gradual success are all necessary in order to outsmart those who simply have a talent for doing math.
There have been a lot of examples where CMA students were afraid to deal with numbers at first sight. But, after several months they noticed that there was really nothing to be afraid about.
Common Challenges Students Face
Though mathematics is not a requirement altogether, there should be certain expectations from the people studying for CMA. Mathematics plays a significant role in this course.
People who try to avoid all knowledge about mathematics will have difficulty with certain aspects at first. Rather than having a fear of the subject, people should work on developing skills step-by-step.
Following are some simple methods:
- Revision of basic mathematics concepts
- Practice Use of financial calculators
- Understanding of formulas, instead of rote learning
- Seeking assistance when necessary
A Skill That Can Be Improved
An important point about math is that it is not a talent one is born with. There is a wrong assumption that someone is naturally skilled at math while others are doomed to be always poor at it.
However, mathematical skills and self-confidence may be improved by practice and experience. Those who could not do well at school often show an unexpectedly good understanding of mathematical issues when taking a business course since the relevance makes everything clearer.
Mathematical operations in real life situations seem much more exciting than similar tasks in a boring class setting.
Advice for Students Considering CMA
If being good at mathematics is the only reason behind your indecision regarding CMA, perhaps it would be worthwhile for you to question your assumptions.
Rather than questioning yourself about whether you have a flair for numbers, try asking yourself other relevant questions.
- Are you fascinated by finance?
- Are you excited about comprehending the inner workings of companies?
- Are you able to think logically and solve problems?
- Are you eager to learn?
- Do you envision a career in corporate finance, management accounting, or business analysis?
Answers to such questions tend to give a better assessment of your prospects than math grades. Professional designations aim to hone your abilities. You don’t have to start off being an expert.You just have to be willing to learn.
Looking Beyond the Fear of Numbers
However, too many students find their way barred by this fear of mathematics, never comprehending what lies behind these doors.
This is indeed a shame because CMA, contrary to all perceptions, is an accreditation of students who love finance yet hate mathematics. The importance of mathematics in this process should be obvious. Yet, the real value of CMA cannot be reduced to proficiency in numbers, but rather knowledge of what these numbers mean.
Numeracy, like good communication skills or analytical mind, certainly plays an important role. It, however, can never substitute for other qualities that matter. They include curiosity, perseverance, consistency, and desire to know and study.
To put it simply, the main difficulty encountered by students does not relate to either math or finance. They just lack self-confidence due to their incompetence in these subjects. The obstacle overcome, new horizons will open up for them.
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