Careers in Management Accounting

The field of accounting has expanded considerably in the past few years. The common misconception is that all types of accounting, including management accounting, involve bookkeeping alone. In the beginning, accounting may have consisted of little more than "doing the books", but that is no longer the case. While accountants still record, report, and analyze historic financial information, they also evaluate current financial and non-financial information, and even estimate future financial events. Some different types of accounting that exist today include financial accounting, management accounting, forensic accounting, cost accounting, and auditing.

Management Accounting

Management accounting is generally concerned with preparing information for internal users, such as managers and executives, who then use the information to make decisions that help achieve the goals and objectives of the company. Management accounting uses both financial and non-financial data to deal with economic events of the business, such as determining the unit cost of manufacturing a product. Management accounting uses special purpose reports for specific decisions, such as managerial cash flow statements that show the breakdown of cash flows from operational, investing, and financing activities. These reports often pertain to subunits of the business, are detailed, extend beyond double-entry accounting to any relevant data, and are governed by the relevance to specific decisions.

Jobs for Management Accountants

Management accountants are an integral part of any business operation, and the career opportunities in management accounting are widespread. There are many different positions in the workforce open to management accountants. Following are some examples of positions that could be filled by management accountants, along with a short description of management accounting duties each job may possess.

Accounting Manager - Prepare fiscal and budget reports for internal management and external agencies; develop projections and provide analysis with recommendations and conclusions to management.

Accounting Administrator - Develop and improve parts and systems; work with, aid, and support operation departments related to accounting and finance matters; prepare reports for management.

Senior Financial Analyst - Plan budgets, monitor task performance and actual costs; analyze cost and schedule variances; prepare contract estimate-at-completion reports; assist executives with forecasts of sales, profit, and profit margin.

Manufacturing Cost Accountant - Maintain accuracy of cost data for raw materials, work in progress, finished goods, labor, overhead, and other related manufacturing costs; standardize and document operating procedures.

Budget Analyst - Prepare and administer the annual operating budget; evaluate business units to determine profitability.

Conclusion

This is only a short list of the extensive variety of accounting positions available to management accountants. As is evidenced by this list, management accountants are able to choose from an assortment of interesting, diverse, and exciting careers.