How to become A Management Accountant

The key features behind any successful enterprise are having a powerful circle of expert business advisors and remaining organised and informed at all times through timely and well-formatted reports and records. It is precisely these services that a Management Accountant delivers, integrating accounting, finance and management to drive businesses towards success.

• Cost Accountant
• Managerial Accountant
• Industrial Accountant
• Private Accountant
• Corporate Accountant
• Lead Accountant
• Enterprise Accountant
• Chief Accountant
• Chief Accounts Officer
• Controller of Accounts
• Finance Controller
• Finance Director
• Chief Intelligence Officer
• Finance Manager
• Financial Advisor

What do Management Accountants do?

A Management Accountant would typically need to:

• Record and crunch numbers, help to select and manage company investments, carry out risk management and budgeting, and formulate plans & strategies; assist management with decision-making while also explaining its financial impact; prepare financial statements
• Analyse and communicate a company’s financial position and the financial implications of its business model and decisions; offer insights into enterprise performance; work with the general management to create business strategies that generate shareholder value
• Prepare commentaries, monthly budgets, forecasts, and accounts to help with business planning; analyse, control and forecast income and expenditure to ensure conformity with the budget
• Develop and maintain financial systems and policies; identify and recommend systems that reduce costs, manage risks better, and improve business performance
• Negotiate and procure finance for major projects
• Offer professional inputs on financial matters, such as competitor analysis, variance analysis, tender preparation and review, strategic planning, and long- & medium-term planning
• Liaise with colleagues; simplify and communicate financial data to non-financial managers
• Create and supervise a team of accountants who monitor the business activities of various firms
• Stay aware and ahead of different emerging macroeconomic trends and fluctuations in the financial markets

Management Accountants typically work in an office setting in government chambers, large firms and local businesses. Some may choose to take up residence near their workplace for ease of commuting.

They may sometimes travel to attend conferences and seminars.

Typically, you will work general office hours Monday to Friday, between 40 and 45 hours a week. However, there are certain times of the month and the financial year when there are tight deadlines, such as month-end and year-end, when extra working hours may be required. Part-time work and short-term project work is also available with several large employers. 

Finding a new job might seem challenging. Management Accountants can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs and inquiring at staffing agencies.

Management Accountants are generally employed by:

• Consulting Accountants
• Manufacturing Industries
• Retail Enterprises
• Tech Firms
• Local & Central Government Agencies
• Banks
• Insurance Companies
• Utilities
• Travel and Tourism Sector
• Transport Corporations
• Central, State & Local Governments
• Healthcare Corporations

Professional associations and organisations, such as the Institute of Management Accountants (IMA), are crucial for a Management Accountant interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Stressful job environment; difficulty in maintaining a cohesive thought-process when under pressure
• Susceptibility to burnouts and exhaustion due to lack of time for self-care
• Work overload, especially during the tax season and the end of a given financial year
• Repetitive work, such as forecasting income and expenses, can seem unrewarding, especially in the early stages of a Management Accountant’s career
• Intense competition in the field
• Growth from lower positions to high-level executives is steady but slow

Pre-entry experience is not compulsory for Management Accountants since freshers typically work under an experienced professional. As their knowledge and experience expand, they are assigned more complex projects, which foster independence. However, experience through sandwich courses, part-time employment, vacation placements or internships may help incorporate transferable skills that will ensure success in the professional accounting realm. You may contact accounting firms, local government agencies and even local companies and entrepreneurs to gain such opportunities.

Reading as much as possible about the profession and interviewing those working in management accounting will prove your commitment to course providers and prospective employers. 

A bachelor’s degree is highly recommended for aspiring Management Accountants. Although any major is acceptable, accountancy, finance, business, statistics, or mathematics may be more relevant. These subjects may exempt you from some exams required to qualify as a professional Management Accountant through relevant courses.

Aspiring Management Accountants may take high school classes in mathematics, economics and business to enhance their chances of securing admission into prestigious universities.

Individuals with a high school diploma may also become Management Accountants by taking a certificate course in business accounting from the Chartered Institute of Management Accountants (CIMA) before seeking professional qualification.

However, with relatively fewer years of experience than college graduates, one may seek only entry-level positions.

To become a Management Accountant, you must complete training with professional bodies for accountancy, such as the Chartered Institute of Management Accountants (CIMA). Certification demonstrates a Management Accountant’s competence in a skill set, typically through work experience, training, and passing an examination. Although chartered management accountancy is open to all graduates, those new to business or accounting studies must first work towards the CIMA Certificate in Business Accounting (Cert BA), consisting of four examination subjects and computer-based assessments.

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years. With experience of at least five years or a master’s degree in accounting, Management Accountants can work their way up to senior roles such as Financial Controller, Finance Director, or Chief Financial Officer (CFO) of a company. Management Accountants may also advance to become Senior Accountants or Senior Analysts, then to Accounting Supervisors, Controllers, and CFOs.

Management Accountants may diversify into areas within cost and management accounts, such as cost accounting or auditing, financial planning, business applications or analysis, strategic management, and management reporting & accounting, among others.

With more experience and strong clientele, Management Accountants can also become freelancers or independent accounting consultants. You may even go on to set up an accounting firm of your own,

Candidates with the necessary skills, experience, and education have the best job prospects. Attention to detail, critical thinking skills and computer proficiency may enhance a Management Accountant’s job prospects.

Continuing professional development (CPD) will help an active Management Accountant build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. It allows you to upskill continually, regardless of your age, job, or level of knowledge.

Continuing education (CE) helps Management Accountants maintain their competency and skill sets as professional services providers. Institutions such as the Institute of Management Accountants provide a range of professional development courses for Management Accountants.

Pursuing an MBA (Master of Business Administration) or master’s programs in accounting or taxation may enhance your job advancement, raise salary potential, and develop presentation and communication skills.

Management Accountant vs Financial Accountant

Management Accountants provide valuable services to an organisation just as Financial Accountants do. However, there are critical differences between the two roles. Management Accounting primarily involves completing tasks and producing reports that inform company leadership about financial decisions related to general company operations. The central focus of Financial Accounting is advising external groups – such as banks, boards of directors, stockholders and tax agencies – about the company’s financial status.

Potential Pros & Cons of Freelancing vs Full-Time Employment

Freelancing Management Accountants have more flexible work schedules and locations. They have full ownership of the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

A full-time Management Accountant, on the other hand, has company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

Robert Plant of Led Zeppelin, Mick Jagger of the Rolling Stones and Janet Jackson all studied accounting in college.

If you like keeping track of budgets and enjoy working in a role with responsibility and authority, management accounting is the field for you. Management Accountants occupy an irreplaceable position in any business. They provide timely and accurate information while participating as consultants and partners with the management to create strategic plans for organisational growth.

Always relish an opportunity to learn and seek extra responsibility to advance your career. Remember to keep in mind the organisation’s goals and cost structure while managing its income and expenses. You must make decisions keeping in mind the context of your client, the accounting industry and the economy.