Career Definition for a Management Accountant
Management accountants analyze a company's historical financial data to estimate future costs and revenues, create budgets and prepare internal reports which are used to make business planning decisions. In some organizations, the information presented by management accountants is only used within the company; however, in others, they may interact with external parties, issuing reports used by regulatory agencies, shareholders and auditors. They are employed throughout the U.S. by companies in virtually every industry, from agriculture and manufacturing to communications and construction.
|Education||Bachelor's degree in accounting or finance as a minimum, many employers require a master's|
|Job Skills||Knowledge of current accounting principles, detail orientation, communication, accounting software|
|Median Salary (2018)*||$70,500 for accountants and auditors|
|Job Growth (2016-2026)*||10% for accountants and auditors|
Source: *U.S. Bureau of Labor Statistics
Most employers require a bachelor's degree in accounting or finance; however, some employers may prefer a master's degree. Experienced management accountants may also obtain Certified Management Accountant (CMA) certification offered by the Institute of Management Accountants (IMA). The IMA website provides CMA exam information and preparation tips, as well as a listing of online continuing education courses. Many management accountants with financial accounting duties also pursue the Certified Public Accountant (CPA) designation, which may be required for some positions.
Management accountants must be analytical and detail-oriented with good math skills and an expert understanding of current accounting principles. They must have excellent written and verbal communication skills and the ability to analyze and summarize complex information. They must have a strong understanding of business principles and finance in order to interpret data and make strategic recommendations. Strong computer skills and proficiency with spreadsheet and accounting software programs are essential. They must also have strong leadership and managerial abilities, good personal interaction skills and be able to work well under pressure.
Career Outlook and Economic Future
The BLS expects 10% job growth for accounting and auditing occupations over the 2016-2026 decade, which is faster than average growth compared to all occupations. The BLS reported in May 2018 that accountants and auditors made a median annual wage of $70,500.
Alternate Career Options
Here are some other options to consider for careers in finance:
After earning a bachelor's degree in a field such as accounting, business, finance or economics, budget analysts then secure employment helping institutions with the organization of their finances by preparing budget reports and overlooking the spending. Average job growth of 7% was expected during the 2016-2026 decade, and these positions paid an annual median salary in 2018 of $76,220.
Faster than average employment growth of 11% was anticipated from 2016-2026, and the BLS reported a median wage of $64,040 per year for cost estimators in 2018. Often having a bachelor's degree connected to a particular field, along with a strong math background, these professionals estimate all of the resources that will be necessary to make specific products or to provide certain services.