What it like working in management accounting

If you are interested in recording a business’s expenses and income, but would also like to have a position that comes with a significant level of authority and responsibility, then management accounting is possible for you. 

The aim of this article is to inform you of what it is like working in management accounting. 

You will get a look at the responsibilities a management accountant has to handle, as well as the skill set required and professional designations which can help further your career.

Job Description

When you work as a management accountant you can work for private companies, government agencies and public businesses. This job can also be known by another title: cost accountants, however, that title also performs a similar set of functions in a company. 

One of the main things you will be doing is preparing data so it can be used by the company. This is a major responsibility that differentiates this type of accounting from other forms like public accounting.

Rather, you will focus on crunching numbers and recording items for internal reviews. These internal reviews are designed to aid the proper preparation of budgets as well as helping to improve performance. Additionally, you can work closely with other company managers to help the firm select and take care of its investments. It can be said that management accountants are budgeters, risk managers, planners, decision makers and strategists. It is their job to help the individuals in decision making roles at the company to make informed decisions. 

It will be your duty as a management accountant to supervise junior accountants that have to handle the basic accounting jobs of the company like recording expenses and income, keeping track of tax liabilities, as well as making use of this data to formulate income statements, balance sheets, and cash flow statements. If you, however, happen to work in smaller firms, it might be necessary for you to undertake these tasks. 

As a management accountant, it is your job to analyse the data and create budgets, forecasts, budgets, plans and performance measurements which are to be presented to those in senior management to help their decision making.

Skill Set

It can be said that the most integral skillset necessary to become a management accountant is to have an interest and the aptitude for math, business, production procedures and numbers. 

You should also be interested in managing a business. It is required of management accountants to have a firm grasp of accounting, such as the GAAP or generally accepted accounting principles, basic tax principles, and foundational accounting. 

These skills have to be expanded if you want to be a management accountant as you have to be able to understand cost accounting as well as tools like discounted cash flow. Considering as a management accountant your decisions will affect the management of a business, you have to have a great foundation in economics, as well as excellent presentation and communication skills. Persuasion, writing and interpersonal skills.