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What the job adverts mean with Management Accounting?..

LondinaLondina 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 :-)

Comments

  • Bookworm55Bookworm55 Trusted Regular Registered Posts: 479
    I don't think the Financial vs Management accounting split is particularly meaningful or useful.

    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.
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    Bookworm55 wrote: »
    I don't think the Financial vs Management accounting split is particularly meaningful or useful.
    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....
  • Bookworm55Bookworm55 Trusted Regular Registered Posts: 479
    Londina wrote: »
    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.
  • LufluxLuflux Feels At Home Registered Posts: 52
    Taken From the CIMA Website

    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.
  • LondinaLondina Experienced Mentor MAAT, AAT Licensed Accountant Posts: 814
    Luflux wrote: »
    Taken From the CIMA Website

    Management accountants concentrate
    on future achievements and challenges;
    forecasting and helping to shape and
    influence strategies that will develop their
    organisation’s business potential.

    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!
  • LufluxLuflux Feels At Home Registered Posts: 52
    Sounds like a smaller company. I would expect a larger company to have its own tax team/Dept.

    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.
  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    I think that anyone offering you a job and describing it as "The Management Accountant" needs to be asked exactly what that job would involve. The title can mean different things in different businesses.

    In fact a lot of job titles in finance vary in terms of what they involve, financial accountant, credit controller and so on.
    Sandy
    [email protected]
    www.sandyhood.com
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