A Management Accountant is a professional who performs financial analysis and reporting for organisations.
But how does the role defer from that of an accountant?
In this blog post, we will discuss the role and functions of a Management Accountant, as well as the differences between an accountant and a management accountant.
Who Is A Management Accountant?
A management accountant is a professional who performs financial analysis and reporting for organisations. The role of a management accountant is to provide financial information and advice to managers within an organisation.
Management accountants typically have a bachelor’s degree in accounting or a related field. They also have a CIMA qualification or equivalent.
What Does A Management Accountant Do?
The primary role of a management accountant is to provide financial information and advice to managers within an organisation.
A management accountant may also be responsible for developing budgeting and forecasting models, performing cost analysis, and managing investment portfolios.
In addition, management accountants may also be involved in providing tax planning and advice, as well as risk management services.
Employment Prospects
The employment prospects for management accountants are excellent.
In fact, the management accountant role is ranked as one of the top 100 graduate jobs in the UK. Management accountants have great demand in accounting firms, marketing firms, IT services firms, law firms, banks, educational institutions, health care organisations, etc.
The average salary for a management accountant in the UK is £35,000 per year. Companies like KPMG, PwC, Deloitte, and Ernst & Young are all major employers of management accountants.
Skills and Abilities
A management accountant must have strong analytical and problem-solving skills. They must be able to effectively communicate their findings to managers and other stakeholders.
In addition, management accountants must be proficient in using accounting software and financial analysis tools.
Difference Between An Accountant And A Management Accountant
The distinction between ACCA and CIMA specialisms may be summed up in a single sentence at an accreditation level. While ACCA focuses on numbers of the past, CIMA explores the numbers of the future.
The core skills of a management accountant are:
- Cost Analysis: Understand the behaviour of costs and use this knowledge to improve decision making.
- Budgeting and Forecasting: Build budgets and forecasts that enable an organisation to plan for the future.
- Investment Analysis: Evaluate investment proposals and make recommendations based on financial analysis.
- Change: Understand and manage the impact of change on an organisation’s financial performance.
- Planning: Develop long-term plans that support an organisation’s strategic objectives.
These are the key differences between an accountant and a management accountant.
However, both accountants and management accountants must have strong analytical and problem-solving skills. They must be able to effectively communicate their findings to managers and other stakeholders.
In addition, both types of professionals must be proficient in using accounting software and financial analysis tools.
Conclusion
In conclusion, a management accountant is a professional who performs financial analysis and reporting for organisations. The role of a management accountant is to provide financial information and advice to managers within an organisation.
While an accountant focuses on the historical financial performance of an organisation, a management accountant focuses on the future financial performance of an organisation.
Axies Accountants can help you with your Management Accounting needs.
To know more, get in touch with us today.
