3/18/24, 2:32 PM What is the role of a management accountant?

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Management Accountant: What is the role and what are

you expected to do?
Written by: Helen Jones

Published on: 11 Mar 2021

Category: Advice and support Role insights

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A management accountant is a key role within a business, but what is the role and what are
they
How expected
ICAEW use to do in it? ICAEW delves deeper in this management accountant guide.
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A management
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accountant's role combines financial, analytical and management skills to aid senior
management with decision making and promoting long term financial success for a
business.
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What does a management accountant do?
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A management accountant works within a business to prepare and present financial
reports to senior management teams in order to give an insight into business performance.
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The reports are used to aid with business strategy and also in decision making within the
business, to ensure growth and profitability.

Key responsibilities of a management accountant

A management accountant’s responsibilities can vary, but mostly include the following:

Preparing monthly management accounts and other financial reports such as budgets.

Presenting reports to senior management to aid with business decision making.

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3/18/24, 2:32 PM What is the role of a management accountant?

Compiling strategies that will reduce business costs.

Obtaining finance for projects.

Advising on the financial implications of business decisions.

Developing and overseeing financial systems and procedures and identifying

opportunities to improve these.

Controlling income and expenditure within the business and ensuring that expenditure
is inline with budgets.

Overseeing accounting technicians and support with generic accountancy tasks.

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Communicating with all levels within the organisation and being able to present
financial information to non - finance members of staff.
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Management
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to make informed business decisions. The analysis of business performance is a vital role in
a management accountant's job, this analysis is produced by looking at current financial
information and also non - financial data to determine the position of the business. This
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information is then used by senior management to make short term decisions and also to
develop strategies for the long term growth and development of the business that ensure
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Skills required for the jobPowered by Cookiebot by Usercentrics

Management accountants are expected to have excellent analytical and numerical skills
whilst maintaining a strong attention to detail. A solid foundation of basic accountancy
skills is also required for this role including an understanding of the generally accepted
accounting principles. An understanding of business is also important for management
accountants along with the ability to communicate effectively at all levels to advise and
liaise with senior members of staff. The duties of a management accountant should be
carried out with a high degree of organisational and strategic thinking skills.

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3/18/24, 2:32 PM What is the role of a management accountant?

Career opportunities for a management accountant

Any business organisation with a financial department will require a management

accountant, they are also frequently employed by financial institutions. With experience, a
management accountant can expect solid career progression. Professionals with the
required qualifications and experience can go on to become financial controllers, finance
directors or chief financial officers.

Competencies of a management accountant

There are high-level competencies required for the management accountant role:

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Data, digital and technology Details About

Identifies strategic options to add value, using data and technology.

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Analyses and evaluates data using appropriate tools and technologies.
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Applies technologies to visualise data effectively and clearly.
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Monitors developments in global trade, markets, business practices and the current
economic climate and suggests the improvements needed in the financial and risk
management of a business. Allow all cookies

Advises on current business asset valuations, capital projects and investments through
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the right analytical qualitative and quantitative techniques.

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sources of business finance and different
ways of raising finance.

Communicates and advises what impact financial decision making is having on

developments in regulation, ethics and governance.

Assesses and advises on the right strategies to manage business and organisational
performance in relation to business and finance risk while communicating the impact
effectively.

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3/18/24, 2:32 PM What is the role of a management accountant?

Governance, risk and control

Evaluates all internal structures and governance to protect the interests of stakeholders
in the long term.

Recommends the right strategies to ensure the organisation adheres to governance

structures and applies best practice internal controls.

Highlights and manages risk appropriately.

Makes use of risk management strategies with the best interests of the company and its
stakeholders in mind.
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Monitors and applies legislation, policies, and procedures relevant to the organisation.

Management
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Uses development and performance management across the wider business and
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Directs performance in the company through selecting and measuring financial and
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Collaborates on all tactical and organisational areas involved with budgeting, control,
capital investments, resource management and people.

Consults on design and use of theAllow

latestall
technology
cookies and information systems to evolve
decision making and organisational performance.

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Stakeholder relationship management

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Develops positive relationships with internal and external stakeholders.

Communicates and gains commitment from internal and external stakeholders.

Uses emerging technologies to collaborate and communicate effectively with

stakeholders.

Applies professional and ethical judgement when engaging with stakeholders.

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3/18/24, 2:32 PM What is the role of a management accountant?

Aligns organisational strategic objectives with stakeholder needs and manages

expectations.

Strategy and innovation

Use business and commercial acumen awareness to deliver business objectives.

Can suggest appropriate strategic options where sustainable plans and objectives can
be developed.

Evaluates, justifies, and puts strategic options in place.

UsesConsent
various innovative methods to implement
Details strategy and manage change.
About

What is the difference between a management accountant and a financial

accountant?
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The difference between both financial accounting and managerial accounting concerns the
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intended users
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as well as marketingManagerial
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Why be a management accountant?

Management accounting offers a highly respected career path with doors into every sector
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and industry. It’s what essentially keeps our economy going by providing the vital support
business leaders need.
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It’s also a path that doesn’t discriminate and is accessible to all, with or without a degree.
So if you know where you’rePowered
headingby Cookiebot byschool
after leaving Usercentrics
or college, it's possible for you to
jump straight into the world of accounting by completing one of our entry level
qualifications to help build your knowledge of business, finance and IT.

With clear steps to progression, you’ll also steadily be on your way to earning a high-flying
salary. Our ACA courses offer a defined path to becoming a certified management
accountant regardless of the route you decide to take, whether it be university, an
apprenticeship or if you already hold qualifications such as an AAT, with our AAT-ACA Fast
Track route.

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3/18/24, 2:32 PM What is the role of a management accountant?

What skills does a management accountant need?

Management accountants are expected to have excellent analytical and numerical

skills whilst maintaining a strong attention to detail. A solid foundation of basic accounting
skills is also required for this role, including an understanding of the generally accepted
accounting principles. An understanding of business is also important for management
accountants, along with the ability to communicate effectively at all levels to advise and
liaise with senior members of staff. The duties of a management accountant should be
carried out with a high degree of organisational and strategic thinking skills.

How much does a certified management accountant make?

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The average salary for a chartered management accountant in the UK is £51,229, an
increase from a £40,000 average earned by management accountants without a
chartership.
How ICAEW use These are figures that have been reached through surveying individuals at all
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Related: How to become a chartered accountant

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