Accountancy and Financial Management Area of Work
Management Accounting Use financial expertise to make informed business decisions and drive change within organisations on a strategic level.
Required skills
M
anagement accounting is a sector that brings together accountancy, finance and management to generate information that aids company leaders in decision-making and implementation of financial strategies. The responsibilities of management accountants are two-fold – they not only provide critical information to management about the state of an enterprise, they may also be business partners who take active roles in planning and strategising a firm’s policies. Professionals draw conclusions from financial information obtained, and generate business-specific insights to present strategies for organisations to navigate the ever-changing commercial environment. As such, the advice they offer can range from product design economics and the cost of running production lines to IT solutions planning and HR management. Management accountants also need to be able to see the venture from a complex international perspective. In this respect, good management accountants are as aware of global trends as they are of specific, local
issues to each process of the establishment, and are able to see how both factors interact and affect the company as a whole.
General overview Newcomers usually start with a position in general accounting in order to pick up various skills that’ll be useful for management accounting. But if a graduate intends to specialise in management accounting, they’ll be encouraged to study for the specialist professional qualifications offered by various professional bodies, like the Chartered Institute of Management Accountants (CIMA). Early responsibilities include crunching numbers for internal reviews and helping to prepare the management budget. Once established, management accountants may be asked to assist with risk management, identifying trends and opportunities for future investments and overseeing junior accountants. Many duties, however, entail working closely with senior management, and includes advising them in decision-making and strategy planning.
As with most accounting positions, having a business- or finance-related degree, or a relevant professional qualification such as those offered by CIMA, will be beneficial. A credible management accountant possesses a good foundation in Systems Applications and Products in Data Processing (SAP) management software, GAAP and financial analysis and reporting skills. Good communication and persuasion skills are also highly essential for translating complicated concepts and data for management unfamiliar with accounting intellect, as well as promoting ideas and opinions. Additionally, management accountants ought to be equipped with leadership and decision-making skills. As new hires progress, the ability to observe local trends with international perspectives in order to decide on the value of potential investments should also be developed.
Pros and cons This is a challenging field that comes with enjoyable mental stimulation. However, duties can be both diverse and taxing at times as well. On the other hand, the knowledge that a firm has been settled in a direction – especially the more successful ones – can be particularly satisfying. Finance Career Guide 2023
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