Management accounting is generally described as the ability to look into the financial future. Required skills in this area often go beyond the core understanding of accounting and finance to include knowledge of a wide range of general business management principles.
These roles can be a lot more strategic than you might expect – the financial management techniques employed by qualified management accountants help drive businesses forward in terms of financial results, creation of wealth and shareholder value, and development of general business best practice.
The skills required must constantly evolve in order to cope with:
- General business demands
- The ever-increasing need to partner operational management
- The need to extend a sphere of financial and business influence
Commercial accounting – skills in demand
Commercial accounting is about getting the right information to the right people at the right time. The core skill required, which never changes, is the ability to communicate well with non-financial people and managers. Additional skills you’ll also require include:
- Strategy formulation
- Risk management
- Financial modelling
- Financial planning
Management accounting – ready for the challenge?
Part of the appeal of a career in management accounting is that management accountants work across an entire business, not just in finance. Gaining experience at this level is often crucial if you have ambitions towards becoming a Finance Director.
From advising operational managers about the financial implications of projects to reviewing the consequences of actual or potential business decisions, management accountants have commercial input into business strategy, cost control, spending and analysis of the competitive landscape.
By choosing a career in management accounting, where your job will analyse and interpret business intelligence, you will add significant value as your financial analysis converts into clear actions for business leaders.