A management accountant oversees a company’s finances, manages supporting departments, prepares financial reports, and can create internal financial systems. They may specialize in tax, cost, or budget accounting and require attention to detail, communication skills, and accounting software knowledge. A bachelor’s degree is typically required, but certifications and further education are available.
A management accountant, also known as a financial or managerial accountant, is responsible for the company’s money. She oversees everything to do with money in and out, profits and losses. If anyone inside or outside the company has a question about the company’s assets or expenditures, they are expected to have the answer and provide supporting documents.
In addition to overseeing the company’s cash, a management accountant typically manages the departments that support the company. Accounting, data processing and purchasing departments may report to the management accountant. Financial reports on taxes, shareholder payments, equity investments, banking, payroll and benefits are regularly reviewed by the management accountant. After review, reports are forwarded to the appropriate department managers.
In a smaller business setting, the management accountant may be required to perform the duties of all accounting and accounting personnel. Duties may involve keeping expense and profit records and regularly reviewing relevant transactions with department heads. Preparing income statements, accounting reports, balance sheets, quarterly and tax reports on payroll and cash flow is sometimes part of the job of the management accountant in small and medium-sized businesses.
The management accountant can also create internal financial and accounting systems. This improves your ability to provide more accurate forecasts and develop alternatives to increase profits or reduce expenses. Developing a unique system can also result in greater industry knowledge, making the accountant a more valuable asset to the company.
Sometimes management accountants look into specialized avenues such as tax, cost, and budget. Tax accountants look at a company’s tax debts and investigate ways to reduce them, such as deducting more or investing in tax-exempt funds or shelters. Cost accountants look at production costs and develop ways to cut costs without compromising quality. Likewise, budget accountants try to increase profits by restructuring spending habits.
Exemplary attention to detail and a comprehensive understanding of accounting principles are required to succeed in this position. Good communication skills are desirable as the job often involves interacting with a variety of outside departments and agencies. Highly developed computer skills and knowledge of accounting software programs are required.
Many employers are willing to hire a management accountant with only a bachelor’s degree in accounting or a related field. Other employers prefer a master’s in accounting or further completion of a certificate program. National and local accounting organizations offer a variety of certifications and continuing education courses in management accounting.
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