A management accountant usually works at providing advice to the management of a company or individual clients on how to interpret financial information to help them make wise financial decisions that will affect the company. The company or individual may have financial goals they want to achieve and therefore need the assistance of a person trained in this branch of accountant. It is a broad field in which there are several different job titles, such as:
- Strategic Management Accountant
- Cost Accountant
- Budgeting Accountant
- Finance Manager
- Financial Advisor
- System Cost Accountant
Other duties of a management accountant could include reviewing the validity of specific investments for the company. You might be involved in preparing cost estimates associated with specific projects and monitoring these projects to ensure that they do not exceed the budget. Knowledge of dealing with contractors and skill in negotiating contracts is essential for this type of work. Being able to forecast future income and expenditures is also necessary in some areas of management accounting. One of the main focuses of this type of job is that you will identify areas of the business where there may be inconsistencies that need to be addressed or corrected.
You need to have a Bachelor’s degree with a major in accounting in order to become a management accounting. There are also personal characteristics and other knowledge you need to perform well in your job. These include being proficient at using the computer and accounting software, especially the use of spreadsheets. Analytical and problem-solving skills are important as well as skill in interpreting financial information. Word processing skills are also important in writing reports. You do need to have exceptional interpersonal skills and use tact and diplomacy in some challenging situations.
Along with your undergraduate degree, you do need to be certified as a management accountant to obtain such a position. This means taking courses and passing the exams administered by the Institute of Management Accountants leading to the Certified Management Accounting designation. You do need to have at least two years experience and pass the rigid four-part exam required for this certificate. This exam covers areas related to analyzing financial statements, the policies of working capital, and issues of valuation, capital structure and risk management. When you aspire to obtain this position, you will receive training on the job when a management accounting firm hires you and this will help you gain the work experience necessary for the certificate. The salary is quite high and this job offers many opportunities for advancement in your accounting career.
