A typical accountant is concerned with reporting financial outcomes to external parties like banks and shareholders, however, managerial accountant is concerned with delivering information to internal decision-makers. As a result, management accounting plays a critical strategic role in organizations.
Roles and abilities of management accountants
The Institute of Management Accountants (IMA) explains that management accountants have the expertise to deliver high-quality since they have specialized abilities in professional ethics, financial planning, analysis, decision support, and control.
Management accountants have a diverse set of talents that enable them to contribute to a company’s success in a variety of ways, that includes:
- Advising project managers on the financial consequences
- Explicitly stating the financial implications of business decisions.
- Putting together a business strategy
- Monitoring financial controls and spendings
- Carrying out internal business audits
- Explaining the competitive landscape’s impact
Management accounting -salaries and job growth
The Bureau of Labor Statistics (BLS), the job outlook for management accountants and auditors is strong with an expected growth rate of 4 percent between 2019 and 2029. The job sector pays a median wage of USD 71,000 per year, with a bachelor’s degree being the normal entry-level academic qualification required. Management analysts, a related discipline, are considered to be performing slightly better. With the same degree of education, this industry pays a typical annual salary of USD 85,000.
Career opportunities in management accounting
During the early stages of a management accounting career internal auditors, cost accountants, and financial analysts are common job roles for management accountants to pursue. Management accountants may oversee a team of internal auditors or analysts after a few years of experience, or they may serve as financial controllers.
Management accountants have many opportunities today. Those with advanced degrees and industry qualifications are well rewarded in today’s job market. Experienced professionals can go a long way with the right qualifications. Professionals with associate’s degrees may also find good employment opportunities.
Management accountants may advance to treasurers or Chief Financial Officers (CFO) after many years of work.
Here are some of the management accounting jobs with varying degrees of experience that are currently available for those interested in pursuing a management accounting career.
These professionals construct and analyze budgets to assist organizations in achieving efficiency, managing their finances, and increasing profitability.
These professionals examine financial statements and corporate operations to ensure that all applicable laws and procedures are followed. Internal auditors report to senior management on their findings and suggestions.
These professionals work closely with controllers and are in charge of all financial reporting. They also collaborate with external auditors on occasion to ensure that regulatory obligations are met.
They are senior professionals in charge of a company’s internal controls and accounting procedures. They have a wide range of responsibilities, including financial reporting and accounting.
Management accounting skills to acquire
The following are the basic skills that professionals in their management accounting careers, regardless of their job roles, must possess:
- Communication: One of the most important aspects of managerial accounting is the ability of accounting professionals to explain their findings and conclusions to the company’s management teams. For this, professionals must have great written and oral communication skills.
- Spreadsheet applications: Professionals in this industry will almost certainly need to know how to use Microsoft Excel. Although there are alternatives, such as Libre Office’s Calc, professionals who are familiar with Excel should be able to transfer their skills to Calc or Google Sheets. These specialists must be able to create macros and customize them to match their requirements.
- Trend analysis: Most organizations want to know where management accountants are going in their finance and accounting careers and how they can best prepare for the future. Management accountants must be able to evaluate the trajectory of their company from the past to the future. This could include things like market changes, social trends, and elements like the resources needed to run a business.
- Collaboration: Unlike financial accountants, management accountants communicate more with other departments inside their company. That is, management accountants must collaborate with other departments to decide where improvements are required.
- Margin analysis: This skill can prove useful when professionals are attempting to determine the main profit centers of their companies. This type of study can also help professionals spot inefficiencies that are costing them money.
To wrap up…
Managerial accounting may be a suitable option for those who wish to take their number-crunching employment to the next level. They’ll require at least a bachelor’s degree and may have to start as a staff accountant. They will be able to receive a designation after a few years in the industry, which will help them work their way up the corporate ladder and fetch a higher income.