It is normally felt that the accounting job merely involves bookkeeping. It is concerned with recording of transactions only. However, in today’s world the role of accountant has widened.There are different fields of accounting today-financial accounting, management accounting, cost accounting etc.
Management accounting involves preparing information for internal users who then use this information for the purpose of decision making. Management accounting uses both financial as well as non-financial data. The information provided by management accountants is forward-looking instead of historical.
It helps the management to determine whether the financial targets of the company are being met or not. The management accountants are involved in preparation of different kinds of reports such as profitability reports, customer wise profitability reports, product wise profitability reports etc.
CIMA and CMA offer management accountancy courses.
As a management accountant you are expected to have an analytical mind as lot of analysis need to be done in this job.Their responsibilities include budgeting, performance evaluation, cost management and assets management. Usually they are involved in the strategic planning with the top management. They analyze the financial information that corporate executives need to make important business decisions.
Management accounting is an interesting field as it’s quite different from traditional accounting. You need to analyze lot of information and have to make sure that the information which you are providing is accurate and up to date and many important decisions depend on your analysis. Also, you should have clear cut understanding of what is required and you should be able to present that in your report.
To be successful in this field you will have to constantly perform. You should be in a position to advice the management on introduction of new products, how to get higher profit margins by reducing cost etc. This means that you need to understand the business in and out.
Many times you will be asked to decide whether to need to make a product or buy it from outside or whether the operations should be shut down or continued. You need to understand that the input provided by you would be very critical for management and you should ensure utmost care while reporting out anything.