The role of a Management Accountant is different than a private practice accountant. Private accountants deal with accounting and auditing for a client base where as management accountants are part of an internal business department.
Management accountants handle the fiscal responsibility of accounts and face the challenges of making sure the accounts are profitable for the business.
Management accountants produce, or help produce monthly or weekly management accounts showing the profit and loss position of the business.
The skills needed to become a successful management accountant are:
- ability to be an effective communicator
- keen eye for detail and organization
- impeccable time management skills
- able to work independently on different projects
- excellent math and computer knowledge
- interpret technical financial information
In order to become a Management Accountant, you are required to train for a professional certificate. There are many different accounting organizations but most individuals seeking a Management Accountant position focus on the Chartered Institute of Management Accountants(CIMA).
The CIMA has two tiers to complete for certification:
- CIMA Certificate in Business Accouting
- CIMA Professional Qualification
To learn more about the CIMA certification, please visit the website.
If an individual decides to pursue a different way to achieve certification, the Association of Certified Charter Accountants(ACCA) and the Institute of Financial Accountants(IFA) offer training in financial and business management. The website for more information on the ACCA is http://www.accaglobal.com. The IFA website is http://www.ifa.org.uk
Earnings for a Management Accountant differ based on training and certification. The breakdown of salary rages are based on typical guidelines:
- Trainees or part-time accountants can average between UK18,000-30,000 per year.
- Qualified management accountants are paid between UK30,000-50,000 per year.
- The size of the company determines the possible average salary of a finance manager or director-UK50,000-100,000 per year.
After the individual is employed by a company, he/she will be expected to perform duties of a Management Accountant:
- involvement with payroll and bookkeeping
- interact with business managers on accounting practices and procedures
- identify areas where profits can be increased and losses can be decreased
- assist management on making decisions about the company
- prepare all financial statements-including profit and loss
- engage in internal audits of companys accounting practices
Management accountants have the opportunity to utilize their skills to move their career direction into other opportunities like finance manager or director, CEO or consulting.
You can work towards becoming a management accountant if you have no experience see our Accounting Technician job profile.