A few days back, we saw an interview with the Chairman of WIRC - CMA Harshad S. Deshpande (Practising Cost Accountant, Insolvency Professional and a Registered Valuer Independent Director, Member of the Advisory Committee of IPA, Member of the Valuation Standard Board, ICMAI RVO, Member of Advisory Committee of ICMAI RVO, Director, Decode Resolvency International Pvt. ltd.)
We wanted to highlight the key points in his take on the future of CMA in 2023. So, go through the entire blog to know more about how he chose CMA as a career and his journey till now as a CMA.
Table of Contents
Harshad Sir’s CMA Journey.
When asked about his CMA journey, he exclaimed It was a fascinating CMA journey. Choosing to pursue a career in CMA after 12th grade was an unusual path to take, especially at a time when CA was the more popular option.
It was difficult to make the family understand the role of a CMA because the profession was not well-known or recognised at the time and I knew this career will be known in future. In 2003, I passed the CMA Final.
The Salary Range of a CMA in 2003
When asked about his pay, he stated that he previously received a stipend of 3000, which was later increased to 5000.
then mentioned that he was offered a job with a salary package of 3 lakhs, but turned it down because he wanted to continue his own practice. He was aware that it takes time to build a successful practice, but he was confident that the wait would be worthwhile in the long run.
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CMA Career in the Stock Market
The Reasons for Low Salary Packages
He stated that the highest salary package offered at the last CMA campus was 28 lakhs, while the lowest was 6 lakhs. He acknowledged that the salary gaps could be due to a variety of factors.
However, he explained beautifully that the student who received the 28-lakh package may have the potential to grow faster and receive even better packages in the future.
On the other hand, the student who received the 6-lakh package could grow and earn a 50-lakh package in 5-10 years, depending on their potential and motivation to achieve their goals.
Ultimately, the initial package does not define a person's potential or future growth. It is up to the individual to work hard, learn new skills, and prove their worth in order to be successful in the future.
Harshad Sir’s Career Guidance For 12th Students
Sir stated that in the past when students chose to study commerce, approximately 90% of them decided on CA (Chartered Accountancy). However, today's commerce students have many more options and choices, such as forensic auditing, data analytics, system auditing, etc.
This means that students who have completed their graduation and gained some work experience now have more opportunities for growth and advancement. It is important to note that professional courses are not some of the options available today.
He emphasised that it is up to each student to select a course or field that matches their skills, interests, and expertise. As a result, students should carefully consider their options before deciding on the best path for them.
Learnings and Challenges as the Chairman of WIRC
Harshad sir stated that the position he held was extremely demanding and presented its own set of challenges.
He explained that he became chairman during the COVID pandemic and that despite the challenges, the agenda and programmes were carried out successfully, resulting in the organisation earning the highest profit that year.
However, there was a lot of chaos due to the pandemic, and the council had to make some difficult decisions, such as switching to online exams. This change raised many questions and anxiety among the students.
As I had to consider the student's needs and think about how the decision would impact them because the council has authority over exams and everything related to them. He made certain that he carefully considered the situation and took actions that would ultimately benefit the students.
Areas that CMA Students Need To Work On
In response to this question, he stated that students pursuing CMA courses are less vocal than those pursuing other professional courses.
This could be due to a lack of communication and soft skills. Although CMA students work hard, they may have difficulty expressing themselves.
Students are given orientation and soft skills programmes to help them overcome this challenge. These programmes are designed to provide them with the necessary communication and soft skills for success in the industry.
It is important for CMA students to understand the value of communication skills and how they can help to progress in the industry. CMA students can become more effective in their roles and establish themselves as leaders in their fields by improving their communication and soft skills.
How to Start and Maintain CMA Practice?
Starting and maintaining a successful practice requires a proactive approach. It is important for students to understand the job market and anticipate which roles will be relevant in the long run. Completing a professional course such as CA, CS, or CMA is not enough anymore. Students must expand their qualifications portfolio.
Cost auditing and tax auditing were once popular fields, but as compliance has become more rigid, there are fewer opportunities in these areas. As a result, students should look for roles that are likely to remain in demand and will not be replaced by automation or other factors in the near future.
To achieve this, students should do market research to determine which areas are growing and have a long-term future. By doing so, they can position themselves to take advantage of these opportunities and establish a long-term practice.
Starting a practice can be a challenging decision, and it's important not to regret it. It takes patience and dedication to succeed in the first few years, and it's essential to have the necessary qualities to perform the work correctly.
This includes the ability to manage and delegate tasks to others effectively. It's also important to remember that practice isn't a typical 9-5 job.
Practitioners need to be available 24/7 and be willing to learn new things constantly. Dedication is crucial in this field, and it requires a commitment to ongoing learning and development. The first few years can be tough, and practitioners need to be patient and persistent in building their practice.
What Are Some of the Traditional Roles of CMA?
A CMA's traditional roles in the industry include:
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Keeping cost records
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Budgeting
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Internal control evaluation and monitoring
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Product management analysis
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Auditing of costs
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Compliance with indirect taxation
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MCA compliance
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Audits of financial statements
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Cost management in the organisation
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Ensure product profitability
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Keep track and analyse the cost of production and materials.
How Can CMA Grab Higher Packages and What is the Future of CMA?
With experience and knowledge, CMA students can accomplish great things. Completing the CMA course and ranking well in the CMA Final exams can impact salary but it is more important to focus on long-term goals, identify its prerequisites for desired roles, and network effectively. These three steps can assist students in obtaining higher-paying jobs.
The CMA has a very bright future, and it has always grown during times of crisis, we have seen various career paths struggle during times of crisis, as we saw in Covid, but we have seen CMA grow during times of crisis, and this profession will never be replaced by AI, accounting can be replaced, but cost management will not.
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