Management Accounting or Managerial Accounting, one of the types of accounting, is concerned with provisions and use of accounting and financial information to managers within organizations to help them analyse their position on the set strategic goals already set and the future goals that should be set.
Contrary to financial accounting information, Management Accounting information is exclusively prepared for the use of just the managers within the organization rather than the stakeholders and often is confidential information. Each organization follows slightly different formats of reporting but the principles are the same.
Role of a Management Accountant:
Like most other roles in today’s corporations, Management Accountants have a dual reporting relationship. Given their role in strategic decision making for the organization, management accountants are responsible for handling the business teams and co-ordinating the performance reports to the finance wing of the corporation.
The various activities of a management accountant include forecasting and planning, performing variance analysis, reviewing and monitoring costs in the business and operations etc. some of the activities like new product costing, operations research, business driver metrics are accountable to the business teams. Preparation of costing reports, risk and regulatory reports etc. are accountable to the finance wing within the organization.
Career Path of a Management Accountant:
Qualified management accountants perform a variety of roles. As they can work in any industry the opportunities for progression are varied and plentiful depending on your individual ambitions and aspirations.
There are two main career paths to follow. Progressing to financial planning and analysis head, a route that allows a more sophisticated reporting and analysis environment. The other alternative is to ebentually become the finance controller or finance director for which you might want to take a role inclined towards financial Accounting.
Salaries vary considerably depending on the role, the organization and the industry. While there are no bars on the entry requirements, it was found out that people with a professional certification command higher salaries than those without one.