Management accountants typically work for larger corporations. Similar to internal auditors, management accountants are employed by specific companies to work in-house on their employers’ finances rather than working for clients through accounting firms. Very large corporations may even have entire in-house accounting departments, which include management accountants as well as other personnel who tend to the companies’ finances.
Management accountants may have a number of duties within their companies. Some management accountants are responsible for creating or overseeing their employers’ budgets. This can include everything from tabulating operating costs and employee salaries to projecting expected revenue and predicting which areas of the company will be the most profitable. A corporation’s accounting office may be in charge of determining which costs are necessary and which can be reduced or cut altogether.
Some management accountants evaluate the efficiency of their employers. This could take place in many facets. Management accounting careers could lead you to even evaluate the performance of certain procedures, resources, employees, or entire departments. You may be responsible for recommending whether certain areas of the company need to be enhanced or decreased. Management accountants monitor the production of their employers to be sure that profits are reaching their goals. If production is not where it should be, a management accountant will furnish his or her employer with recommendations on how to meet their performance goals.
At other corporations, management accountants are responsible for overseeing the companies’ contracts. In some cases, management accountants may prepare contracts, whereas in others, they may merely monitor any expenses that are being contracted for outside services. Management accountants will advise their employers on whether contracting out or using internal resources is the most fiscally appropriate path.
In very large companies, different rungs along the corporate ladder may have different spending capabilities. Management accountants review the entire process of where money is distributed and spent within organizations. They make recommendations as to whether funds should be spent by a certain level of management or whether they would be better spent if they were diverted elsewhere. For example, lower management may have a better sense of where money is needed within their departments than upper management, so it may be more financially responsible to designate spending power to lower management to maximize efficiency of resources.
Just as auditors, public accountants, and government accountants do, management accountants also perform the basic function of preparing financial documents for their employers. Often, management accountants are responsible for overseeing any financial communication that comes from their companies. Management accountants prepare statements for investors and other outside parties. Their background and education in accounting allow them to verify the accuracy of these documents and be sure that they are devoid of fraud.
Within a management accounting career, you may have the chance to work with other departments within a corporation that you may not be involved with directly, like an auditor. For example, management accountants frequently work with marketing. They use the financial statements they prepare alongside the marketing department’s salesmanship to promote their corporation to potential shareholders. Management accountants also get to work in close conjunction with the upper echelons of corporations, who need their recommendations and financial reports.
Salaries for a management accountant depend on the type of organization that employs you. Some larger companies may have more of a budget to hire an entire management accounting department, whereas smaller organizations do not always have the same capacity. However, as a management accountant, similar to an internal auditor, you have the opportunity to seek employment as an accountant within an industry that interests you.