Management accounting is generally concerned with informing managers so that they stay up to date with relevant information so that they can make informed business decisions. Management accounting should not be confused with financial accounting (which is a common misconception). Financial accounting tends to be more focused on previous transactions, whereas management accounting is more towards looking into the future. Financial account often involves information for shareholders which is publicly released, whereas management accounting deals with private, confidential information which is often never released to the public.
As a management accountant in an organisation, you'll provide operational and financial information to those inside the organisation who need it, and you'll regularly report with the business and financial teams for updates on their progress. You're responsible for keeping track of any new information and any changes, and then directing that information to those who can deal with the new information or changes. You're activities will involve reviewing aspects of the business like costs, forecasting ahead based on evidence, and checking previous forecasts to see if they are correct, and if not, then you'll have to understand why they are not correct.
That said, this is a role which can vary considerably from one organisation to the next, although the core principles remain the same. A large business can even have many management accountants keeping track of more specific parts of the business. You'd then be responsible for overseeing and forecasting for just that section of the business.
Keeping records is a key skill, you'll need to keep top quality records so that you can quickly provide key information of specific issues that may arise in the organisation. Moreover, you'll be required to produce summaries of the key information related to the business, so that internally managers can track progress.
Often management accountants are also involved with controlling activities and ensuring that they are being carried out. As you're collecting so much information, chances are that you're often the first one who'll notice an issue, so in some cases it's your responsibility to track down and resolve that issue (particularly in smaller business where you can't just report to a manager and expect them to take care of everything).
Some of the specific skills you'll need will likely include:
Analysis of data, price modelling, profitability analysis, cost benefit analysis, budgeting, planning, management advice, and financial forecasting.
Overall you'll have a key role in the organisation which can be quite varied, from helping with decision making to producing forecasts.
As a management accountant in an organisation, you'll provide operational and financial information to those inside the organisation who need it, and you'll regularly report with the business and financial teams for updates on their progress. You're responsible for keeping track of any new information and any changes, and then directing that information to those who can deal with the new information or changes. You're activities will involve reviewing aspects of the business like costs, forecasting ahead based on evidence, and checking previous forecasts to see if they are correct, and if not, then you'll have to understand why they are not correct.
That said, this is a role which can vary considerably from one organisation to the next, although the core principles remain the same. A large business can even have many management accountants keeping track of more specific parts of the business. You'd then be responsible for overseeing and forecasting for just that section of the business.
Keeping records is a key skill, you'll need to keep top quality records so that you can quickly provide key information of specific issues that may arise in the organisation. Moreover, you'll be required to produce summaries of the key information related to the business, so that internally managers can track progress.
Often management accountants are also involved with controlling activities and ensuring that they are being carried out. As you're collecting so much information, chances are that you're often the first one who'll notice an issue, so in some cases it's your responsibility to track down and resolve that issue (particularly in smaller business where you can't just report to a manager and expect them to take care of everything).
Some of the specific skills you'll need will likely include:
Analysis of data, price modelling, profitability analysis, cost benefit analysis, budgeting, planning, management advice, and financial forecasting.
Overall you'll have a key role in the organisation which can be quite varied, from helping with decision making to producing forecasts.
