5 things you should know about Management Accounting

Interested in understanding what Management Accounting (MA) is all about?

Learn about a career where you are important for the ongoing success of the organisation or company you work for.

Firstly, what is the difference between an accountant and a management accountant?

Financial accounting primarily focuses on preparing financial information for external users, such as investors, regulators and creditors.

Management accounting focuses on providing financial and non-financial information to people within an organisation to support planning, decision-making and performance management.

1. MA is for forward thinkers

According to Seek.com, MAs are “futurists who drive business strategy to generate and preserve value”.

The information that MA’s source, analyse, communicate and use – both financial and non-financial information – is presented to company stakeholders in a way that directly affects the future of the business.

2. MA is for multi-taskers

Your role will vary widely depending on where you work, how large the company is, and what focus area you have been tasked with. Wherever and however that may be, you will combine skills in the keys areas of business, accounting, finance and management. These will come together to help improve the growth and profitability of the firm and organisation of which you are a part.

3. MA is for multi-skilled professionals

No day in the office is the same as you provide a holistic view of the company through the following ways:

* Looking at outstanding debts, revenue and cash flow and collating this information;

* Assisting in the formation of budgets and accounting policies;

* Forming a complete overview of how the company is performing by using both non-financial and financial data;

* Prepares reports, conducts investigations and advises on matters such as mergers, capital financing, the buying and selling of businesses, insolvency and taxation; as well as

* Intelligently providing stakeholders with advice on the financial implications of business decisions, strategy, and the best way to monitor risk.

4. MA is for problem solvers

It can be difficult to obtain timely and accurate information, and this is a difficulty you have to resolve. You will implement well-developed systems for tracking financial data, and deciding which data is relevant.

Management accountants draw on knowledge of both accounting and finance to analyse information, support business decisions and help organisations manage financial performance.

CPA Australia, in this article, advise MAs on how to steer businesses through tough times. It is clear that this role is key to organisations having a plan in action to survive, and thrive, through forecasting, the reduction of costs, and maximising operational capacity – all of which an astute MA and team can map out.

5. MA Offers Diverse Career Pathways

Management accountants work across a range of sectors, including private businesses, government agencies, public companies and not-for-profit organisations.

The responsibilities and opportunities available vary depending on the organisation, industry, location and an individual’s qualifications and experience.

Pros and Cons

Seek.com offers a space for working MAs to review their roles, which is interesting if you are thinking of pursuing this avenue of accounting.

Pros: Some management accountants report enjoying the variety of work, opportunities to contribute to business decisions and the analytical challenges of the role. Pay, job security and work-life balance vary between employers, roles and individuals.

Cons: Hard work and long hours in the early stages of your career. Working with various stakeholders that have different needs. Communication is key in this role. Always a new challenge to overcome to comply with reporting requirements.

Your path to becoming a Management Accountant

There are different pathways into management accounting, depending on an individual’s qualifications, experience and career goals.

Studying an accounting degree, such as the ICMS Bachelor of Business (Accounting), is one way to develop relevant knowledge in accounting, finance and business management.

The ICMS Bachelor of Business (Accounting) includes studies in management accounting, helping students develop an understanding of how financial and non-financial information supports business decisions.

Students explore topics such as cost management, budgeting, forecasting, pricing and variance analysis, as well as how to interpret and communicate financial information to support organisational planning and decision-making.

Not only will students examine cost management, costing, forecasting, budgeting, pricing and variance analysis, but students will also be shown how to present and interpret these findings. This information is critical to managers interested in knowing the most effective and efficient use of the organisation’s resources.

The ICMS Bachelor of Business (Accounting) incorporates Work Integrated Learning (WIL), which is designed to give students opportunities to apply their academic knowledge in professional settings.

Through industry-connected learning and practical experience, students can develop workplace skills and gain insights into accounting and finance careers.

WIL experiences and placement arrangements are subject to the requirements of the degree and individual circumstances.

Graduates interested in pursuing professional management accounting qualifications may explore pathways offered by professional bodies such as the Chartered Institute of Management Accountants (CIMA) and CPA Australia.

Professional qualifications have separate entry, study, assessment, experience and membership requirements. Eligibility for particular programs, exemptions or membership pathways depends on the individual’s qualifications and the professional body’s current rules.

Students should confirm current requirements directly with the relevant professional body before choosing a professional qualification pathway.

For more information on the ICMS Bachelor of Business (Accounting), click here.

Sources:

* Statistics: Seek.com, July 2023

Australian government Labour Insights

Disclaimer: Career opportunities, professional placement experiences and graduate employment outcomes vary between individuals and are not guaranteed. The ICMS Bachelor of Business (Accounting) provides an academic qualification; professional accounting certifications, designations and memberships are subject to separate requirements established by the relevant professional bodies. These may include additional study, examinations and practical experience. Students and graduates should confirm current requirements directly with the relevant professional body or regulator.