Management Accountant Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a management accountant. Feel free to use our job description template to produce your own. We also provide you with information about the salary you can earn as a management accountant.
Who is a Management Accountant?
The style of the economic, as well as cost control reports, is created by the management accountant of a company. These records are presented to the monitoring executives at each level with the most useful data at the best time. He/she also teaches monitoring executives how to use reports. This professional is often referred to as the Chief Intelligence officer of the top monitoring.
Administrative tasks require someone who can gather details and simplify them into manageable groups. He also divides pertinent and non-essential information, then ranks the relevant information according to its relevance to management. Monitoring is provided with the very first rank information immediately. Management is also provided with the lowest-ranking scoring information as needed.
The management accountant professional is responsible for preparing and sending the required information to management according to their requirements.
This professional might be able to predict the revenue potential from a new product or find ways to reduce costs in the organization’s operations. Management accountants are employed to assess whether the company’s current items and procedures are still reasonable and they can determine whether procedures should be stopped by comparing the expected earnings from a particular line of work with the cost of closing it down. This scenario would require a thorough evaluation that includes settling personnel information, as well as analyzing advertising and marketing information, to determine if a new item should be added to the production line. An analysis of this nature will also consider the potential earnings of using resources from other industries.
The comprehensive assessments of both the business’s problems and potential solutions are prepared by management accountants. These reports are used to assist an elderly firm’s administration in making major decisions that will determine the company’s economic success.
Management Accountant Job Description
Below are the management accountant job description examples you can use to develop your resume or write a management accountant job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The job and duties of the management accountant include:
- Analyzing and gathering information to evaluate the effectiveness of financial procedures.
- Assisting in reducing monetary risks
- Creating and implementing reasonable financial policies.
- Supervising the younger monetary division staff and accounting procedures.
- Assisting in the preparation of economic reports and spending plans.
- Engaging in auditing and taxation techniques.
- Reviewing benefits and payment bundles.
- Ensuring that financial monitoring policies, and procedures, comply with regulatory requirements.
- Assisting in the security and confidentiality of sensitive and critical information.
- Keeping abreast of all regulatory requirements and the best methods in management accounting. Budgeting and reporting.
- Encouraging calculated preparation and company planning.
- Providing monetary evaluations and forecasting.
- Managing capital investment.
- Generating statutory and also administration accounts.
- Ensuring compliance with all monetary laws.
- Analyzing essential monetary information
- Generating economic declarations, including the capital, variation analysis, and commentaries.
Other responsibilities include:
- Planning
An accounting system must be maintained in an organization that covers the requirements of sales projections, earnings preparation, allowance for resources, budgeting, and also short-term as well as long-term economic planning. He must also prepare the necessary procedures for the proper application of the plan.
- Management
The management accountant must assess the efficiency of the operation and compare it to requirements. He must then compare the actual efficiency to determine the differences and analyze the results. He should also send this information to all levels and this can be done by using appropriate accounting records to regulate.
- Coordination
He seeks the advice of all levels of management to help him create a plan or action program. This type of appointment allows for coordination between the accounting division and the leading management.
- Analysis
Bookkeeping information is modified and provided to the management for interpretation. Analyses are performed in several stages. The administration can recognize the real factors that affect the operational outcomes.
- Evaluation
He must evaluate the effectiveness of policies, organizational structure, and the treatments used to achieve the goals. He should consult top executives and functional managers to do this.
- Encouragement
He must encourage the management to improve the performance of the procedures.
- Management of Tax
A company is dependent on pay for earnings tax, added tax, and various other tax obligations to local, state, and federal governments. The management accountant is responsible for paying the tax obligations and keeping the records, as needed.
- Federal government coverage
He will be responsible for all statements and returns that are sent to the government periodically within the due date.
- Evaluation of External Effects
Sometimes, legislation may need to be modified. Modifications and policy modifications can have an impact on the achievement of company goals. Accounting professionals in administration must assess the extent of their influence.
- Financial Assessment
The federal government regularly publishes economic evaluations. This includes the country’s economic situation. The current role of the administrative-accounting professional is to perform financial assessments and determine the effect of economic problems on business activities. He/she will prepare a document and submit it to the top management with comments.
- Protection of Assets
This involves the upkeep of various fixed properties. Each type of property must be signed up by the management accountant. He can also create regulations for each type of fixed possession and can also take out insurance to cover all types of fixed properties.
Qualifications
- Experience as an administration accountant, accountancy supervisor, or similar role.
- Strong knowledge of basic and advanced bookkeeping as well economic concepts and practices.
- Excellent knowledge of pricing and reporting.
- Analytical mind with the capacity to calculate.
- Great communication and presentation skills.
- Business and leadership skills
- BSc/BA degree in bookkeeping, finance, or comparable area.
- CMA or CGMA will be preferred
Essential Skills
Information about financial transactions within an organization is either kept secret or only accessible to a few persons. The skills of a management accountant are similar to the management of financial information. It requires more than just operating in isolation and supplying confidential reports. The management accountant today is positioned well within a group, service area, or other teams.
Words like “Business Companion”, Manager or Expert are now used reciprocally for the new-age accounting professional.
As companies grow and become more agile, the abilities of administration auditors have evolved. A management accountant is needed to be able to extract useful information from real-time data.
Some of the most important management accounting skills that are expected to be available today include:
- Predictive Skills:
Technology, as well as Artificial Intelligence, have changed the nature of Management Accounting. In the past, management accountants were more involved with data, discussion, and evaluation.
However, the role of this professional has changed. They will now be expected to understand the business and predict the impact of many elements on operations. It is more important for the management accountant to excel in his transactions than just looking back at the numbers.
- Determination
A management accountant must be determined in their approach. This means that they need to not only analyze but also add value to the business’ lower lines. The Management Accountant used to be limited to their specific divisions.
They are involved in many other business divisions and devices. They offer guidance to non-finance professionals and help them see the bigger picture from both the perspective of economic gain as well as optimal costing. They can also influence the thinking of other specialists and help them to become more organization-oriented.
- Communication skills:
Management accountants are expected to not only work with information but also communicate the understandings they have derived from it to others. They should be able to both tell the story and create a property from the data. Today, interaction is a key skill in administration bookkeeping.
You can interact with the findings by visualization, case studies, and stories, as well as discussions, to make them even more powerful.
- Flexibility:
These professionals are expected to be flexible enough to fit multiple functions. This could be the job of a Data Analyst or Financial Expert and a Manager who is knowledgeable about the jobs’ business viability.
It is essential that a management accountant can make many suggestions, develop theory, and examine the business case, forms, and advise the management on corrective actions.
- Technical Skill:
We live in an age of disruptive technologies. To be relevant as a management accountant in an organization, he/she must be able to adapt to changing innovations. A management accountant’s technical abilities are crucial in determining the quality of details provided.
A tech-savvy management accountant must be able to manage computerized processes and have knowledge of Company Analytics, language setting, etc. These are the most common languages used in an organization. He must also be proficient in these languages to communicate effectively with everyone.
- Individuals Administration skills
Management accountants do not work alone. They work with other people and lead their groups. Their core task is to provide concrete information.
These details are not part of the formally gathered information. These details are often provided by trusted team members to a management accountant. He also needs to excite them to continue looking for information beyond what they have.
With this skill, the management accountant will be able to provide more information, including past and future data, which will help him analyze the past and forecast the future.
How to Become a Management Accountant
- Earn a degree
A Bachelor’s degree in Accounting, Finance, or another relevant field is the first step to becoming a Certified Management Accountant (CMA). The Institute of Management Accountants (IMA) has established the guidelines for CMA certification. It is important to ensure that your degree program meets these requirements and places a strong emphasis on business.
An internship training may be something you might consider. This can help you gain experience in the field network and make connections with professionals, as well as decide which career path you want to pursue with your accreditation.
- Register for an IMA subscription
The next step to becoming a management accountant is to become an IMA member. A subscription to IMA will give you access to the Certified Management Accountants (CMA) exam prep materials, employment boards, as well as the continuing education and learning courses that you will need to keep your certification. To get started on this, you will need to complete an application and pay the annual membership fee.
The yearly subscription fee to the IMA ranges from $39 to $245 depending on whether you are a certified student, a normal trainee, or an expert.
- Register for the CMA Program
Once you have been approved to join the IMA, then you can register for the CMA program. CMA trainees will pay $188 and professionals $250 respectively for enrollment. You will also have access to the CMA support package through this program. You must pass the CMA exam within one year of signing up for the CMA program.
- Pass the CMA exam
The next step is to pass the CMA examination. Each part of the CMA examination is four hours long and includes 100 multiple-choice questions along with two essay questions. The essay questions must be completed in one hour. For students, the examination fee is $311 per component and $415 for specialists.
- Gain pertinent job experience
After you have completed the education requirements and passed the CMA exam, you will need to get the job experience required by the IMA to be awarded your CMA certificate. CMA candidates must have at least two years of experience working in a job that relates to the CMA category, such as financial management or management audit.
Although it may be possible to fulfill this need before passing the exam, you will still have 7 years to finish the work experience requirement.
- Maintain your qualifications and get as high as possible
You will be awarded the CMA certification after you have met all requirements. To maintain your certification, you must complete 30 hours of continuing education and learning programs each year. You also need to adhere to the IMA Statement of Values for professionals. Annually, you will need to pay your IMA subscription as well as CMA upkeep fees.
Where to Work
Management accountants can work in the following places
- Educational institutions
Universities and colleges have complex monetary systems. They need an experienced team of accountants as well as accounting professionals to ensure that both profits and costs are properly managed. These companies are always looking for new talent to add to their teams. You can apply for a position as a management accountant in a college’s financial department. These groups are open to all levels of experience, so it doesn’t matter if you have years of work experience or are just starting. You will be responsible for making sure that financial aid covers university tuition costs by being an accounting professional at a university.
- Federal government Agencies
Federal government companies are another type of organization that requires high-precision accounting to ensure that earnings and expenses are accurately videotaped. There are many job openings in these establishments. Federal government companies will have you responsible for stabilizing financial documents for various programs and other efforts. You may be responsible for tracking the funding of a program or making sure it doesn’t spend more money. The Division of Motor Cars and Municipal Government are two examples of government entities that need accountants.
- Healthcare Providers
To provide medical care for their clients, health care companies work with insurance companies. Management accounting professionals are required to ensure that sufficient income is available to the business to continue providing healthcare to clients. You will have many options when you search for an accountant position at one of these businesses due to the increasing value of government-insured health care carriers.
- Hospitality Organizations
Each resort, restaurant, and motel needs an accountant team. They will execute the daily bookkeeping and also send out monetary reports. These businesses do hundreds to hundreds of transactions each day, so management accountants with specialized knowledge must be available to ensure that all expenses are paid and that the business’ earnings meet its financial obligations. These kinds of businesses are looking for accountants with all levels of experience.
- Retail Stores
Because stores do a lot of business each day, accounting professionals are needed to review their financial resources daily. You should be prepared to work night shifts and to leave early in the morning if you choose to work in retail. Bookkeepers are needed to balance the revenue and expenses of retail stores throughout the year. Accounting professionals are also needed to collect their invoices and other financial documents in the event of tax obligation.
Management Accountant Salary Scale
Like any other type of job, the salary for a management accountant is dependent on many factors, including education, experience, and classifications. It can also be dependent on the company you work for. The IMA estimates that certified management accountants receive 63% more in international payments than non-CMAs. In 2020, the team kept in mind that accountants who hold the CMA designation received a base salary of $105,000 in America.
The Bureau of Labor Data (BLS) reported that the average annual salary for auditors and management accountants was $73,560, or $35.37 an hour. This sector has more than 1.4 million jobs and the potential to grow by 4% per year through 2029.