List of Top 4 Careers in Management Accounting
Below are some of the top management accounting jobs that you can look for in your career.
- Financial Analyst/Senior Financial Analyst
- Finance & Accounts Manager
- Budget Analyst
- Treasury & Payroll Manager
Overview of Management Accounting Careers Opportunities
Management Accounting, also termed as Corporate Accounting, involves responsibilities that focus more on internal development and awareness, budget preparation, risk assessment, financial analysis, etc. Management accounting, often confused with financial accounting, has the basic difference that, where financial accountingFinancial AccountingFinancial accounting refers to bookkeeping, i.e., identifying, classifying, summarizing and recording all the financial transactions in the Income Statement, Balance Sheet and Cash Flow Statement. It even includes the analysis of these financial statements. is more historical in nature the management accounting is a current and forward-looking approach that has more of a futuristic approach for the development of the organization. Management accountants work on processes such as revenue/cost analysis, reasons for increase/decrease, a budgetary process that helps senior managers in decision making, identifying the focus areas, and ensuring that things are under control and within set standards.
Career #1 – Financial Analyst
Who is the Financial Analyst/Senior Financial Analyst?
Financial Analyst works on the compilation of data, analysis, and provided variances analysis for any movement in assigned cost area, cost centerCost CenterCost center refers to the company's departments that don't contribute directly to the corporate revenue; however, the firm has to incur expenses for keeping such units operative. It comprises research and development, accounting and human resource departments., department, or entity.
|Financial Analyst/Senior Financial Analyst – Job Description|
|Responsibilities||Responsible for financial analysis and providing out which helps in decision making, budgeting and gives deep insight.|
|Designation||Finance Analyst/ Senior Financial Analyst|
|Actual Role||Actively manages the day-to-day financial processes, monitors revenue and related cost, analyze the trends of financial indicators and predicts the future, gives input for decision making.|
|Job Statistics||The Bureau of Labour Statistics of the US displays that job growth for financial analysts is 11% from 2016-26, which is faster than average. A growing range of financial products and the need for in-depth knowledge of geographic regions are expected to lead to strong employment growth.|
|Top Companies||Boston Consulting Group, Travellers, Cisco, Goldman Sachs, Deloitte, Edward Jones, Morgan Stanley, Citi.|
|Salary||The average salary for a financial analyst is $68k as per 2019 publish results and salary increases with years of experience.|
|Demand & Supply||There is going to be a good demand for financial analysts with a focus on cost analysis and big data being in focus nowadays.|
|Education Requirement||Bachelor’s degree in finance for entry-level jobs and CMA/CFA/ MBA for further progression.|
|Recommended Courses||Bachelor’s degree in finance for entry-level jobs and CMA/CFA/ MBA for further progression.|
|Positives||Extensive Knowledge of various finance functions and exposure to how exactly an organization is run.|
|Negatives||Sometimes the role is too much scattered leaving a person exhausted and not focussed on one thing at a time.|
Career #2 – Finance & Accounts Manager
Who is Finance & Accounts Manager?
Finance & Accounts Manager takes care of complete Accounts PayableAccounts PayableAccounts payable is the amount due by a business to its suppliers or vendors for the purchase of products or services. It is categorized as current liabilities on the balance sheet and must be satisfied within an accounting period., Accounts ReceivableAccounts ReceivableAccounts receivables refer to the amount due on the customers for the credit sales of the products or services made by the company to them. It appears as a current asset in the corporate balance sheet., preparation of financial statementsFinancial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels., and other statutory reports for audits.
|Finance & Accounts Manager – Job Description|
|Responsibilities||Responsible for finance and accounting function for preparation of profit & loss and balance sheet.|
|Designation||Finance & Accounting Manager|
|Actual Role||Actively manage the daily operations of the payables and receivables and take calls on vendor/customer management for deals and negotiations.|
|Job Statistics||The bureau of labor statistics of the US displays that job growth for accounting managers is 10% from 2016-26, which is faster than average.|
|Top Companies||USAA, Capital One Financial, One deck Capital, JP Morgan Chase, Ernst & Young, Deloitte & Touche, PricewaterhouseCoopers (PwC), KPMG, Bank of New York Mellon, Automatic Data Processing Inc, etc.|
|Salary||The base salary for an accounting manager ranges from $91,835 to $116,722.|
|Demand & Supply||There will always be a good demand for this role as monthly book closing and reporting is widely accepted practice now.|
|Education Requirement||Bachelor’s degree in finance for entry-level jobs and CPA/CFA/CMA/MBA for further progression.|
|Recommended Courses||Bachelor’s degree in finance for entry-level jobs and CPA/CFA/CMA/MBA for further progression.|
|Positives||Extensive knowledge of the different accounting functions and exposure to statutory and internal accounting requirements.|
|Negatives||In the long run, the accounting function becomes a repetitive task.|
Career #3 – Budget Analyst
Who is Budget Analyst?
Budget Analyst works closely with the board and higher management and falls under the Financial Planning & Analysis (FP&A) team. A budget analystA Budget AnalystBudget Analyst is a professional data-oriented person. He/she organizes and allocates various financial resources (Income from business/profession, interest income from bank deposits, profits from trading in stocks or shares) by monitoring each spending on an estimation basis and then produces probable surplus/deficit from the said calculations. is involved in planning and controlling all the functions of an organization through budget preparation and comparison and analysis of budgeted numbers to actual results.
|Budget Analyst – Job Description|
|Responsibilities||Responsible for coordination between investors and higher management and ensures that accurate data is provided for discussion and decision-making.|
|Designation||Budget Manager/FP&A Manager|
|Actual Role||The person was involved in the performance measurement of departments, individuals, and cost centers by identifying areas for cost reduction and efficiency improvement. The budget analysts in also involved in decision-making whether a CAPEX expenditure should be incurred or not by doing the net present value and cost-benefit analysis.|
|Job Statistics||The bureau of labor statistics of the US displays that job growth for budget personnel is 7% from 2016-26, which is equal to the national average.|
|Top Companies||Boston Consulting Group, Travellers, Cisco, Goldman Sachs, Deloitte, Edward Jones, Morgan Stanley, Citi.|
|Salary||The average salary for a budget analyst is $74K which increases with years of experience and career progression.|
|Demand & Supply||There will always be a good demand for budget analysts as tracking expenses, comparing budgets to actuals has become an integral part of any organization nowadays.|
|Education Requirement||Bachelor’s degree in finance for entry-level jobs and CFA/MBA/CMA for further progression.|
|Recommended Courses||Bachelor’s degree in finance for entry-level jobs and CFA/MBA/CMA for further progression.|
|Positives||Extensive knowledge of planning and preparation of steps involved in the budget process and how to gauge in the future.|
|Negatives||It is not an easy task to gauge in the future and determine how the thing will look a few years down the line so sometimes the job becomes too demanding and stressful.|
Career #4 – Treasury & Payroll Manager
Who is Treasury & Payroll Manager?
Treasury & Payroll Accounting Manager ensures that the funds of the organization are being used in an inappropriate manner; there is enough balance in accounts to pay the vendors, employees, and other statutory dues. The person is also involved in cash flow statementCash Flow StatementStatement of Cash flow is a statement in financial accounting which reports the details about the cash generated and the cash outflow of the company during a particular accounting period under consideration from the different activities i.e., operating activities, investing activities and financing activities. preparation, dealing with banks, and other fund management functions.
|Treasury & Payroll Manager – Job Description|
|Responsibilities||Responsible for ensuring that working capital requirement is met and there is no deficiency of funds in case of payment dues.|
|Actual Role||The Treasury manager is the person who oversees the flow of actual cash. Treasury is a very important role in any organization as managing cash and making it available for all occasions is a tough task. The person remains in contact with all the banks to track the receipts, payments,s and other statutory dues.|
|Job Statistics||The Bureau of Labour Statistics of US displays that job growth for treasury personnel is expected to be 14% from 2016-26, which is way faster than average.|
|Top Companies||Each and every company whether big or small need a person or team for its cash management functions.|
|Salary||The average salary for a treasury manager role is $ 91K.|
|Demand & Supply||As suggested by the Bureau of Labour statistics of the US display that job growth for treasury personnel is expected to be 14% from 2016-2026 which suggests a strong demand for professionals who specialize in cash management.|
|Education Requirement||Bachelor’s degree in finance for entry-level jobs and CFA/CMA/MBA for further progression.|
|Recommended Courses||Bachelor’s degree in finance for entry-level jobs and CFA/CMA/MBA for further progression.|
|Positives||Extensive knowledge of cash management and banking functions which is very helpful in career progression.|
|Negatives||It is a high-risk job as it involves cash and any mismanagement or error causes a great deal of loss to the organization.|
Others Careers in Management Accounting
There are various other options a management accountant can pursue as career options in today’s growing finance segment. They can work in the stock market as an analyst for equity, bonds, and other financial instruments. They were then banking in another sector with lots of opportunities. In the United States, public limited companies are also one of the biggest recruiters for management accounts for various roles. Then there are non-banking financial companies that offer a lot of opportunities. They can work as controllers in various departments to monitor and exercise control over assigned cost centers. Apart from the previous traditional roles of forensic accounting, big data, data analytics, SOXSOXThe Sarbanes-Oxley Act (Sox) of 2002 was enacted by the US Federal Law for increased corporate governance, strengthening the financial and capital markets at its core and boost the confidence of general users of financial reporting information and protect investors from scandals like that of Enron, WorldCom, and Tyco. compliance, increasing statutory compliances pose a great challenge and provide a lot of opportunities for budding professionals in the coming days.
Management accounting is a great career field as it plays a very crucial role in maintaining coordination between various internal and external stakeholders. Management accounting is all about how ell the organization is being handled and resources are being used in an optimum way. Management accounting is an effective tool for performance measurement of departments, individual, and cost centers, and it also helps in increasing efficiency and cost reduction, which results in profit maximization. Also, management accounting is involved in identifying foreseeable revenue or expenses, which gauges how the future of the organization looks like. So, this is one of the most exciting fields with great scope and future in the coming years. It also adds stability to one’s career and a rewarding field also. Ultimately, there is so much to learn, work, and earn in the management accounting field.
This has been a guide to management accounting careers. Here we provide the list of top 4 careers in management accounting opportunities, including Financial Analyst/Senior Financial Analyst, Finance & Accounts Manager, Budget Analyst, and Treasury & Payroll Manager. You may also have a look at below finance articles to learn more –