Preparing data for use within a company is one of the features that sets aside a management accountant from other types of accounting jobs, such as public accounting. There is more to management accounting than just crunching numbers.
If you have an aptitude for or interest in numbers, math, business, and production processes. Also with accounting skills, knowledge of GAAP, and leadership skills, then management accounting is the best consideration for you.
In this article, we are going to take you through what a management account represents, the skills needed, formal education requirements, career job opportunities, and the salary of a management accountant in the UK. You found the right article for your search.
What is a management accountant?
The management accountant is responsible for designing the format of the financial and cost control reports.
These professionals also may be called cost accountants, managerial accountants, industrial accountants, private accountants, or corporate accountants, so do not get confused when they are referred to that way, it is simply talking about management accountants anywhere.
Management accountants can work for public companies and private businesses. And even government agencies. Management requires an individual who is ably expected to gather information, break it down and organize it into meaningful and understandable stages.
Moreover, management accountants are expected to be able to separate relevant and irrelevant information and then rank the relevant information according to the degree of importance to the management.
What does a management accountant do?
Preparing data for use within a company is one of the characteristics that distinguishes a management accountant from other types of accounting jobs including public accounting.
There is a lot of work that a management accountant is expected to be able to do, you’ll be responsible for recording and crunching numbers that would be suitable for internal reviewWhich would be able to help companies budget and perform better.
You may, as a management accountant be able to help the company choose and manage its investments.
Alongside other company managers. Management accountants are seen as risk managers, planners, strategists, and or decision-makers.
They do the works that would help the company owner, manager, or board of directors make decisions.
Which would drive the company to betterment. Management accountants often also are there to supervise lower-level accountants who do handle basic accounting tasks, such as recording income and expenses and tracking tax liabilities which the information is used to prepare income statements, cash flow statements, and balance sheets.
In other smaller companies, you may end up carrying out these tasks by yourself. A management accountant carries out analysis to forecast, budget, and also measure performance and other plans, and then presents them to senior management for their assistance in operational decision making.
Why become a management accountant
The role of a management accountant depends on his status in the organization, agreement with the organization, experience and capacity of the management accountant.
Therefore, the functions of a management accountant are listed below.
- Protection of assets
- Appraisal of economy
- Administration of tax
- Reporting of Government
Looking at all the duties of a management accountant, it is almost impossible to think or believe that someone else can replace them on their seat. Let us think and talk about the whole benefits you stand to get becoming a management accountant.
From meeting esteemed men, being head of a team in a company, maybe a renowned one at that. Not to talk of the salary involved, an accountant on their own, get a lot of knowledge working as one. He has to advise the management in order to improve the performance of operations.
Skills to become a management accountant
Employers will be looking for the following skills when reviewing your CV:
- Good maths and computer skills
- Analytical and logical problem-solving skills
- A good business understanding
- Good attention to detail
- Good communications and presentation skills
- An ability to explain complex financial information in a clear way
- Honesty and discretion
- Teamworking skills
How to become a management accountant
Certified management accountants can work in and play major roles such as in corporate accountants, cost accountants, management accountants, financial planners, financial strategists and risk managers. They are often also the financial decision-makers for the company they work for.
It is important to make sure you are a certified management accountant because there are benefits which come with it, including a higher salary.
Listed below are the steps for you to follow to become a certified management accountant:
- Get a degree.
- Apply for Institute of Management Accountants (IMA) membership.
- Enrol in the Certified Management Accountant (CMA) program.
- Pass the CMA exam.
- Gain relevant work experience.
- Get and maintain your certification.
#1. Get a degree
For you to be a certified member of your career, the first step is to get your degree, Management accounting is not a street program in that you only need a high school certificate to attend and attain heights.
You need to batch a Bachelor’s Degree in Accounting, Finance or a related field. Furthermore, your degree must be strictly on business. Getting your degree is the first step toward becoming a management accountant.
#2. Apply for the institute of management Accountancy membership
It is also important, and after the first step which is to get a degree. Identify with other people who already are in the field, it may help you to learn more from them. Candidates in the institute pay an annual membership fee ranging from $39 to $245 depending on whether you are considered a qualified student, a regular student or a professional.
#3. Join the certified accountants’ program
Joining the certified accountant’s program. will require an additional entrance fee of $188 for students and $250 for professionals.
#4. Passing the certified management accountant test
You need to pass the two exams that will be required of the students.
#5. Gaining relevant work experiences
Having relevant work experiences would be an added advantage for anyone in any field.
#6. Maintaining your certificate
Do not just answer someone who owns a certificate, maintaining your certificate may include, working as hard as you did to get the certificate. Maintain your certificate to become a certified management accountant.
Salary
Work experience, specialities, education and designations, and the company for which you work are all examples. According to the BLS, the median annual salary for accountants and auditors is $77,250, or $37.14 per hour. In the UK, a part-qualified management accountant can earn between £27,000 and £40,000. Certified management accountants, on the other hand, can exponentially increase their earning power and earn an average salary of £41,300 – £50,500.
Conclusion
If you enjoy math and have a natural aptitude for working with numbers, management accounting is a viable career option for you. Aside from the attractive pay, it exposes you to a variety of fields and opportunities.
As a management accountant, you are 80 percent responsible for whether or not the company you work for survives. Giving advice to a company’s management is not for the faint of heart.
A Bachelor’s degree is the minimum requirement for anyone to be considered in the field. Professional designations include certified accounting and chartered global management accountants. Experience can help you command a higher salary and advance up the career ladder.
FAQs About Management Accountants
What is the major role of management accountants
Managing risk, planning, mapping out strategies, and decision making. They are also responsible for supervising lower-level staff and identifying trends and opportunities for improvement.
Which type of accountants make more money?
Certified accountants or chartered accountants, make more money. Commanding high pay depends on factors like experience.
Is management accounting a good career
Management accounting is a good career when you are able to do stuff with numbers. Crunching numbers and interest in the business.
