What does a Management Accountant do?
A Management Accountant ensures that an organisation remains financially healthy. They oversee all financial activity, prepare and present financial analysis, and take decisions regarding an organisation’s financial direction.
Management Accountants supervise and, when necessary, intervene in accounting tasks, including the recording of incomes and expenses, the tracking of liabilities, the management of payrolls and the monitoring of investments. They review these activities and prepare reports such as balance sheets, and income and cash flow statements.
Analysing this data allows Management Accountants to produce insights on an organisation’s overall financial status. This includes the uncovering of waste and inefficiency, the forecasting of future risks and opportunities, and the identification of financial successes.
Management Accountant skills and qualifications
Being both a technical and a management role, a successful Management Accountant requires a broad range of skills and qualifications. The particular nature and composition of your organisation will determine which of these carry the most weight but, in general, Management Accountants should demonstrate:
- Mathematical proficiency, including an aptitude for calculation and an interest in numbers
- Consistent attention to detail
- Proficiency in GAAP (Generally Accepted Accounting Principles)
- Strong business sense and understanding of organisational financial practices
- Leadership, management and training skills
- Communication and presentation skills – the ability to synthesise complex sets of data into easily understandable information and then confidently communicate findings to senior management.
- Risk analysis and forecasting
Management Accountant experience requirements
Before stepping into the role of Management Accountant, a candidate should have extensive experience working in more junior financial roles. These can include roles such as a staff or cost accountant, a junior auditor or a tax accountant. Other roles in financial institutions, such as banks, mortgage brokers or investment firms, may also be of benefit.
As this is also a management role, some previous experience in leadership is also recommended. Candidates who have run a department, managed their own business or participated in organisational committees, will have leadership experience that allows them to hit the ground running as a Management Accountant.
Experience working in the public sector or on government projects can also be useful, granting a potential Management Accountant greater familiarity with relevant laws and regulations.
Of course, when it comes to roles in major companies, previous experience as a Management Accountant at another organisation would be highly recommended.
Management Accountant education and training requirements
There are two major accounting certifications recognised around the world as standard by senior accounting professionals. Both of these certifications require at least a relevant undergraduate degree to be completed before they can be undertaken.
The first of these certifications is the Certified Management Accountant from the Institute of Management Accountants. The IMA also offers the title CSCA, which stands for ‘Certified in Strategy and Competitive Analysis’ and is a further extension of the qualification.
The second certification is the Chartered Global Management Accountant designation offered by the American Institute of CPAs together with the Chartered Institute of Management Accountants in London.
Management Accountant salary expectations
According to Indeed Salaries, the average salary for a Management Accountant is $96,038. Of course, the actual salary appropriate for individual positions will depend on many factors, including candidate experience , job location and the company that is hiring.
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Management Accountant job description FAQs
What is the difference between a management accountant and a chartered accountant?
While both roles provide organisations with assistance in making financial decisions, a Management Accountant refers specifically to an in-house role, in charge of an accounting or finance department. Charted Accountants, by contrast, are usually independent contractors that provide external advice.
How has management accounting changed in the past ten years?
As the business environment changes, so too does the role of the Management Accountant. Specifically, with ever-increasing technological development and the rise of big data, Management Accountants are increasingly required to handle large, complex sets of information about their business – synthesising them into understandable, useful advice for management. Evolving geopolitics and new regulatory frameworks, particularly regarding climate change and energy security, must also influence the perspective the modern Management Accountant brings to their role.
What is the most important role of a Management Accountant?
This will vary depending on the size and specific needs of the organisation. When hiring, it’s important to consider exactly what quality you would value most in a candidate, whether that’s technical accounting expertise, business and management sense, the ability to communicate financial information to management or another key quality.
How does the role of Management Accountant vary between small and large businesses?
Ultimately, precisely what a Management Accountants does will depend on the nature and scale of the organisation they are working for. In the context of a small business, Management Accountants may not differ greatly from a traditional accountant. As an organisation and its financial department grows, however, Management Accountants acquire more and more resources and data at their disposal and thus take on greater and great management, oversight and analysis responsibilities.
Do Management Accountants manage people?
Yes, besides the direct management of an organisation’s finances, Management Accountants – particularly in larger organisations – are also the leaders of their respective departments and thus take charge of all of the related managerial activities associated with such stewardship. They can design and provide training programs to junior staff to ensure ongoing professional development, create and implement departmental policy and procedures and take decisions regarding personnel.
What is the benefit of hiring more qualified candidates?
Hiring a candidate with a Certified Management Accountant (CMA) or Chartered Global Management Accountant (CGMA) qualification guarantees a certain level of professional and academic experience.
For example, the CMA only be earned by first acquiring two years continuous professional experience in management accounting or financial management, then taking the relevant course of study and by passing the CMA exam. Afterwards, CMA-holders must continue to undergo at least thirty hours of professional education each year to maintain their certification.
The CGMA also requires a level of work experience and the passing of an exam. So, in the case of both qualifications, you will know your candidate dedicated not only academically, but also has relevant work experience under their belt.
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