A managerial accountant is in charge of a company’s finances, also known as a financial or management accountant. She is in charge of all incoming and outgoing funds, as well as profits and losses. Anyone, inside or outside the company, who has a question about the company’s assets or expenditures is expected to know the answer and provide supporting documentation.
A managerial accountant usually manages the departments that support her in addition to overseeing the company’s finances. The managerial accountant may be in charge of bookkeeping, data processing, and purchasing. The managerial accountant reviews financial reports on taxes, shareholder payments, capital expenditures, banking activity, payroll, and benefits on a regular basis. Reports are sent to the appropriate department managers following the review.
In a small business, the managerial accountant may be expected to perform the functions of all accounting and bookkeeping employees. Maintaining records of expenditures and profits, as well as reviewing relevant transactions with department heads on a regular basis, are some of the responsibilities. In small-to-medium-sized businesses, the managerial accountant’s job may include preparing income statements, general ledger reports, balance sheets, quarterly and payroll tax reports, and cash-flow statements.
In-house financial and accounting systems can also be created managerial accountants. This improves her ability to provide more accurate forecasting and come up with new ways to increase profits or cut costs. Creating a one-of-a-kind system can also lead to increased industry knowledge, making the accountant a more valuable company asset.
Managerial accountants occasionally pursue specialized areas of accounting, such as tax, cost, and budgeting. Tax accountants examine a company’s tax liabilities and look for ways to reduce them, such as increasing deductions or investing in tax-free funds or shelters. Cost accountants look at production costs and figure out where they can save money without sacrificing quality. Budget accountants, likewise, try to boost profits reorganizing spending habits.
To be successful in this position, you must have exceptional attention to detail and a thorough understanding of accounting principles. Because the job usually requires interacting with a variety of departments and outside agencies, good communication skills are essential. It is necessary to have advanced computer skills and knowledge of accounting software programs.
Many employers will hire a managerial accountant who only has a bachelor’s degree in accounting or a closely related field. Other employers prefer a master’s degree in accounting or completion of a certification program in addition to a bachelor’s degree. National and local accounting organizations offer a variety of managerial accounting certifications and continuing education courses.