Managerial Accounting
Managerial accountants are integral members of their organizations. They analyze and record their employer's financial information. Asset management, performance evaluation, budgeting, and cost management are among their primary responsibilities.
Daily Tasks
Corporate executives use information provided by managerial accountants in order to make sound business decisions. Managerial accountants also:
- Prepare financial reports for groups associated with their firms, including tax authorities, creditors, regulatory agencies, stockholders, and board members.
- Help their employers run more efficiently by ensuring that taxes are paid on time and public records are kept accurately.
- Perform the general duties of an accountant, such as investment analysis, information technology consulting, and legal services.
Management accountants generally function as an integral member of a team involved in the development of new products or strategic planning. They may work in various areas of accounting departments, such as cost accounting, planning and budgeting, and financial analysis. They may also operate under different titles, including cost, corporate, private, or industrial accountants.
Public accounting firms and local, state, and federal government agencies are among the primary employers of managerial accountants. Few managerial accountants own and operate their own accounting firms.
Training & Education
Most employers require that prospective managerial accountants hold at least a bachelor's degree in accounting or a related field. Some prefer applicants who hold a master's degree with a concentration in accounting, while others accept applications from prospective employees with a sufficient combination of postsecondary education and work experience.
Managerial accountants can strengthen their candidacy for employment by earning licensure or certification, especially a Certified Public Accountant (CPA) credential. The American Institute of Certified Public Accountants confers certification upon accountants who follow a certain code of ethics, perform their responsibilities with consistent accuracy, and pass a four-part exam.
Salary & Employment Outlook
A managerial accountant's compensation often depends on where he or she is located, leading to a wide range of salaries. According to the U.S. Bureau of Labor Statistics, the median annual earnings of managerial accountants is approximately $59,000 per year, with the middle 50 percent earning between $45,900 and $78,000 per year. The highest 10 percent earn more than $102,400 per year.
According to a survey conducted in 2009 by the National Association of Colleges and Employers, managerial accountants with a master's degree earned an initial annual salary of approximately $50,000, while those with a bachelor's degree earned a starting salary of $49,000 per year. These figures are very close, but keep in mind that the employment prospects for a managerial accountant with a master's degree are significantly more favorable.
The employment outlook for managerial accountants is bright. The Bureau of Labor Statistics predicts that job opportunities for this profession will increase by 22 percent through 2018. With the recovery of our economy will come the creation of new businesses. Management accountants will be needed to ensure business procedures and processes are documented accurately, and to discover and eliminate fraud prior to audits.
Characteristics of a Successful Managerial Accountant
Attention to detail and a facility for working with numbers are among the key competencies required to become a successful managerial accountant. Excellent written and verbal communication skills are also a boon, as these professionals commonly work in teams. Trustworthiness is another major asset, because these professionals will inevitably work with confidential material.