What the job adverts mean with Management Accounting?..
Londina
Experienced MentorMAAT, AAT Licensed Accountant Posts: 814
For me management accounting is what I've been studying with MAC Unit 33, ie:
Accounting for overheads
Time series, sampling and index numbers
Standard costing and variance analysis
Investigating and reporting variances
Performance indicators
Budget preparation
however I often see job adverts that call management accounting these tasks:
Accounts Payable
Accounts Receivable, including processing & reconciling
Bank Reconciliations
Year-End accruals, prepayments & other journals
VAT returns
for me those ones are financial accounting, not management one...but I would apply for a position of Management Accountant if they require me to do this kind of job :-)
Accounting for overheads
Time series, sampling and index numbers
Standard costing and variance analysis
Investigating and reporting variances
Performance indicators
Budget preparation
however I often see job adverts that call management accounting these tasks:
Accounts Payable
Accounts Receivable, including processing & reconciling
Bank Reconciliations
Year-End accruals, prepayments & other journals
VAT returns
for me those ones are financial accounting, not management one...but I would apply for a position of Management Accountant if they require me to do this kind of job :-)
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Comments
I would say that accounts payable and receivable, especially the processing, is a relatively low-level post compared to, say, budgeting. Perhaps it's more meaningful a little higher up when you're considering reporting (more Financial) or analysis (more Management) duties? Either way you're going to need a lot of the same skills.
Thanks, but what I don't understand, if a possible employer ask me "Can you do management accounts" what exactly does he mean? because if he means bookkeeping and draft PL/BS, ok I can do it, but if it's reports with analysis of variances and overhead, nope....
It depends on the organisation. You have to ask exactly what they're after. It'll definitely be accounting/finance based, and of interest to management, but beyond that it depends what they want.
A monthly P&L and balance sheet will be almost guaranteed. They might want an aged debtors analysis, compared to last period. (which should be pretty easy if you have a computerised system) They might want to have a detailed look at what branch/product line is selling best (or worst).
I work for a big company and spent today on a very specific, very niche analysis: the cost of catering purchases for the staff canteens at all the warehouses and office buildings. Who ate all the pies? Well, the Manchester branch certainly bought the most ;-) But that wouldn't be useful at a lot of other companies.
What is a management
accountant?
CIMA Chartered Management Accountants
are both forward-looking and best qualified
to drive business performance, not just
measure it. CIMA members are versatile
professionals who have been assessed in
a practical business setting and can apply
their skills to many different areas and
roles.
Management accountants concentrate
on future achievements and challenges;
forecasting and helping to shape and
influence strategies that will develop their
organisation’s business potential.
The management accountant’s role is to:
• generate and create value through
effective strategic decision making,
deployment of resources and the
formulation of business strategy to
create wealth and shareholder value
• analyse and interpret
management information and
then use that data to make and guide
essential decisions
• measure organisational performance
and interpret financial and non-
financial reports created
in accordance with international
accounting principles
• apply accounting techniques, budgeting
and forecasting to help determine
costs and budgets and forecast future
performance
• analyse processes and manage costs to
reduce waste
• manage risk and provide business
assurance.
exactly, this is what a management accountant is for me, however I noticed some employers call a normal accountant that does financial statements and tax returns the same!
In terms of producing financial statements you will find a mix of Financial and Management accountants producing these. Within my company Financials focus more on control and audit of the accounts and the management accountants will manage the accounts and will explain any variances that may occur to budget and forecast.
In fact a lot of job titles in finance vary in terms of what they involve, financial accountant, credit controller and so on.
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