How to become A Cost Accountant

• Managerial Accountant
• Management Accountant
• Industrial Accountant

What do Cost Accountants do?

A Cost Accountant would typically need to:

• Help businesses by overseeing and analyzing cost expenditures and purchases within the organization
• Develop and maintain the Cost Accounting system, documents and records of the organization by collecting data about the operating systems of the business
• Continuously evaluate the price of providing products or services and scrutinize associated company expenses to analyze and recommend costs & cost savings
• Prepare and complete internal cost audits and financial statements while complying with Generally Accepted Accounting Principles (GAAP) for financial statements
• Analyze any changes in product design, raw materials, manufacturing methods, finished goods, and services provided to determine what effect they have on the cost
• Prepare and submit to the management, regular reports that specify and compare factors affecting prices and profitability of products or services, e.g., break-even points, periodic variances, and margins
• Build updated databases of expenses to forecast and plan future purchasing costs according to fiscal needs
• Provide explanations for inaccuracies and validations for the expense at which goods and services were created and sold during the month
• Develop depreciation schedules, conduct physical inventories, monitor the cycle count program, and reconcile finished goods inventories
• Prepare statements for investors, creditors and government agencies
• Hire, train and supervise cost and inventory accounting staff

The Cost Accountant generally works in an office environment out of the Accounting department but is expected to be quite familiar with all production operations and regularly visit all significant company operations.

Generally, Cost Accountants are not in a supervisory position. You will be required to work closely with upper management. When a company’s production operations and inventory warehouses are spread out, some on-the-job travel may be required. The dress code for a Cost Accountant depends on the location, sector, size, and type of company, but by and large, a business casual attire is recommended.

Cost Accountants usually work full-time and have a regular 40-hour workweek.

Cost Accountants may establish private consulting ventures and are generally hired by smaller firms that cannot afford to employ a full-time Cost Accountant.

Cost Accountants are generally employed by:

• Government Agencies
• Conglomerates
• Public Accounting Firms

Professional associations and organizations are crucial for Cost Accountants interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. Membership in one or more looks excellent on your resume to bolster your credentials and qualifications.

• Impact of new technologies on demands made by clients
• Understanding employment practices, and how businesses are run
• The ability of the profession to adapt to the rapid pace of change
• Cybersecurity

Candidates with two to five years of experience in Cost Accounting would have a better chance in the job market. It may be worthwhile to gain work experience in a manufacturing facility or warehouse where you were successfully manipulating large databases.

You may be expected to have substantive expertise in job costing or process costing, depending upon the manufacturing system that the company uses. If the position is in an industry that requires considerable knowledge of operations, they would prefer candidates with previous experience in the area.

An accredited bachelor’s degree in accounting, economics, business, finance with a sound understanding of bookkeeping, accounting principles and best practices, accounting laws, standards and regulations, cost systems, statistics, Generally Accepted Accounting Principles (GAAP) is an essential prerequisite. Businesses are increasingly seeking candidates with a master’s degree in business administration (MBA).

Some employers prefer candidates with a certified public Accountant or an accredited management Accountant license and accreditation from the International Accounting Standards Board (IASB). Proficiency in Microsoft Suite and Accounting software like FreshBooks, QuickBooks, MAPICS, and Zoho would add considerable value to your resume.

If the company operates in one or more foreign locations, certification in the country’s official language may weigh the odds in your favor.

Cost Accountants need to be familiar with production operations within their company. So, promotion from within the company is fairly typical. However, a Cost Accountant with excellent business account credentials may be able to move to a new company when a job opens up.

Cost Accountants are often entry-level positions for Accounting management. Cost Accountants often move up to other management level Accounting jobs with higher pay. Because they are familiar with the aspects of production within their company, it is not unusual for them to move up to a higher level Accounting job within that same company.

Experience as a Cost Accountant, however, sets one up to take on any number of management-level Accounting positions. With experience and education, Cost Accountants may advance to becoming Budget Directors, Internal Auditing Managers, Accounting Managers, and eventually Controllers, Treasurers, or Chief Financial Officers. It is not unusual for someone who began in Cost Accounting to become a Corporate President.

Problem-solvers who can analyze and improve cost control and efficiency will have the best job prospects as Cost Accountants.

Training in SAP Financial Accounting and knowledge in SAP Controlling can boost knowledge and income. A Cost Accountant must typically gain on-the-job experience in other areas of Accounting before becoming responsible for a company’s Cost Accounting. Three to five years of experience are often required.

Once a Cost Accountant receives certification, he or she must maintain certification by taking continuing education courses each year. Total requirements are usually a minimum of 60 hours of continuing education every three years or approximately 20 hours per year.

The basic Cost Accounting concept includes being able to convene with upper management to make key decisions to cut costs internally. This can include helping to determine the pricing on products and services as well as the wages offered to employees.

Cost Accountants will need to possess strong research skills to explain specific factors that may cause a fluctuation in price. Private Cost Accountants may help a company establish a price for its products while establishing the inventory’s value as it is subject to market forces.

The first recorded name in history belonged to an accountant. His name was Kushim, and he recorded transactions on a clay tablet (c. 3400-3000 B.C).

Behind every successful business person, there is a great Cost Accountant.

Accounting is the language of business. Surround yourself with assets, not liabilities.