What is a Management Accountant? Duties, Skills and Salary
Want to know more about how to become a Management Accountant? Our latest blog tells you all about what’s involved in the role, the skills you need to do the job, and the all-important question of how much you will earn when you reach your goal.
If management accountancy is for you, find out how Reed Business School can help you get qualified and build your dream career as an accountant.
What is a Management Accountant?
There are many different paths you can take when pursuing a career in accountancy but one of the most rewarding and challenging is the role of a Management Accountant.
Management Accountants play a vital part in all kinds of organisations and industries worldwide. Officially, they provide accurate financial data to help businesses make better strategic decisions to support growth. But, in reality they are business leaders, innovators, decision-makers and forecasters who are always looking for ways to improve the company.
Most UK companies are used to filing their end-of-year financial information such as profit and loss accounts but not all businesses, particularly SMEs, are familiar with management accounting. This could be a missed opportunity.
Imagine running a business without any knowledge of tracking cash flow and profits or future revenues and trends? It’s unlikely to be a major success story. Management Accountants can help by creating accounts for internal use within the business which are designed to show important financial data to improve company decision making.
Better insight
The result is once you start using management accounting, you will have a better insight into how your organisation is performing now and importantly, what lies ahead. A Management Accountant can predict whether you are heading for problems even if your business is currently doing well, information which is invaluable for maximising cash flow and long-term profitability.
A key difference between management and financial accountancy is that management accounts look at current and future performance while financial accounts look back in time, for example over a quarter or a year.
What are the duties and responsibilities of a Management Accountant?
As a Management Accountant, you’ll understand how your organisation works. You’ll know its business model, strategic context and competitive position inside out. That, combined with your leadership skills, means you play an important role in any business. Responsibilities will vary depending on the size of the company and the sector you are in but generally you will find a mix of the following on a job description for a Management Accountant:
Financial reporting: Analyse data and prepare financial statements on a regular basis that offer insights into business performance.
Budgeting and forecasting: Develop financial forecasts and budgets to help leaders make decisions.
Cost analysis: Identify areas where cost savings can be achieved through financial analysis.
Strategic planning: Assist business leaders with financial insights for long-term strategic planning.
Risk management: Evaluate financial risks and advise on risk mitigation strategies.
Performance evaluation: Monitor key financial metrics to assess the financial health of the organisation.
Measuring data: Assess operational as well as financial data to measure overall performance.
Compile information: Look to the future and not the past.
In a nutshell, Management Accountants are responsive and will provide whatever information the business needs to succeed.
Key skills for Management Accountants
It’s not just about being good at numbers, Management Accountants need to have great analytical skills and be IT proficient as a range of accounting software will be used in the role. Key skills include:
Analytical thinking: Ability to interpret complex financial data and draw meaningful conclusions.
Attention to detail: Ensure financial reports are accurate and free from errors.
Communication skills: A great communicator who can explain financial information clearly to non-financial stakeholders in the business.
Problem-solving: Able to identify financial challenges ahead and develop effective solutions.
Organisational skills: Manage multiple financial tasks and deadlines effectively.
Technical specialist: IT proficient and familiar with accounting software and tools like Excel, Sage, and SAP.
What will I earn as a Management Accountant?
The salary for a Management Accountant can vary significantly based on experience, industry, and location:
Entry-level: £30,000 to £45,000* per year.
Experienced professionals: £50,000 to £70,000* per year.
Senior-level (CFO): The sky’s the limit! £70,000 to £170,000*plus per year.
Points to note
Industry impact: Management Accountants in banking or financial services tend to earn higher salaries compared to those in retail or public sectors.
Geographical differences: London and the South East typically offer higher salaries. In London, for example the average for a middle range Management Accountant is £54,100 compared to £40,400 in the North East.*
Outside London: Recent years have seen an expansion of the financial sector outside of London. Average management salaries in Scotland, for example, are almost level with the capital.
Large bonuses: With experience, Management Accountants can easily earn six figure salaries and there is always the potential to pick up large bonuses when a company performs well.
Where can a career in management accountancy take me?
Ultimately a career in management accountancy can take you right to the top with a seat on the board as a Chief Financial Officer. Other roles include:
Finance Manager
Management Consultant
Finance Business Partner
Financial Controller
Group Financial Controller.
How to become a Management Accountant
Welcome to the world of management accounting! The best way forward to build your career is to undertake the accounting qualification levels with a professional body such as The Chartered Institute of Management Accountants (CIMA). The global leader in management accountancy training, CIMA qualifications can lead to Chartered Global Management Accountant (CGMA), the only globally recognised designation for Management Accountants.
Whether you are just starting out or aiming to enhance your expertise, gaining a recognised qualification in management accountancy is essential. Reed Business School offers the following CIMA qualifications:
CIMA Level 4 Certificate in Business Accounting
This course covers essential topics to kick-start your career in business and finance. Provides a grounding in all the accounting basics and is ideal if you want a pathway into the CIMA Professional Qualification.
Duration: 1 year
CIMA Level 7 Professional Qualification (CGMA)
Land your dream management accounting job with this prestigious Level 7 qualification which is equivalent to a master’s degree. The CGMA consists of three levels and you will also need three years of professional experience to complete your qualification.
The CIMA qualification is recognised globally and equips you with the skills necessary to thrive in both domestic and international business environments.
Duration: 3 years
Final note
If you’re looking to become a Management Accountant then take your first step towards building a rewarding career with an accredited CIMA qualification. Reed Business School is a CIMA registered provider and has been helping accountants to become qualified since 1972.
Gain the skills and knowledge you need to stand out in your finance career. Contact us today to explore your options.