Reasons to Consider Using Cost & Management Accountant



Management accountants, also known as corporate accountants. They work within a particular company.

The main role of a management accountant is to perform a series of tasks to ensure the financial security of a company. This is because dealing with all financial matters and helps drive the overall management and strategy of the business.

Management accountants play a key role in determining the status of any company and the success of the company. Some choose to be a Certified Management Accountant. This is similar to CPA. They focus more on financial planning, cost accounting and management issues. Their work responsibilities are widespread. Their job responsibilities depend on a company, the level of experience, the time of year and the type of industry. Depending on the above, they can perform any of the following tasks:

  • Budgeting
  • Handling taxes
  • To manage assets to helping determine compensation and benefits packages
  • Strategic planning assistance

There are various levels under the umbrella of accounting. Further, those with a Master’s degree in Accounting can consider a variety of options when they are considering choosing their career path. 

An important and interesting position management accountant is available for those who are studying in accounting. This position will incorporate elements of leadership and accounting that can play an important role in modern organizations and organizations. 

This article discusses the different roles that a management accountant can play in a company and what it requires.

Let us discuss the seven roles of a management accountant in the decision making process of an organization. They are:

1. Stewardship Accounting

2. Long-term and Short-term planning

3. Developing management Information system

4. Maintaining optimum capital structure

5. Participating in Management process

6. Control

1. Stewardship accounting

Management accountants are preparing the framework for a company’s cost and financial accounts and then making reports for the necessary financial and operational decisions.

2. Long-term and Short-term planning

The role of the management accountant is very important in making future plans and forecasting future business and economic events. That means long-term plans, strategic management accounting, corporate strategy creation and market research and others are including.

3. Developing management information system

The regular reports and long-term decision-making reports are sent to administrative staff at all levels to take appropriate action in a timely manner. The management accountant makes important decisions based on these statements. These reports are using to the management accountant.

4. Maintaining optimum capital structure

The role of the management accountant in raising funds and using them properly is very important. Only he or she can make the decision to maintain the right mix between debt and equity. Fundraising by credit is cheaper because it has tax benefits.

It is also dangerous at the same time. Because the company has also to pay interest on the loan if it makes enough profit or runs at a loss. Therefore, the management accountant must maintain a proper capital structure. He should also pay close attention to the different costs of capital theories, the potential for foreign exchange and possibility of trading in equity.

5. Participating in Management process

Management accountant is an important person in the company, and he is also performs a staff function. He also has line authority over the accountant and other employees in his office. He advises administrators on the need for regulatory information and how to use it. He conveys the right information, in clear form, to the management and the other interested outsiders.

6. Control

The management accountant analyses the accounts and then prepares the reports. For instance, control for fixed costs, budgets, variance analyses and interpretation, cash and financial flow analysis, liquidity management, performance evaluation and responsibility accounting and others.

7. Relevant costs analysis

Above all, the management accountant has a most important job. He will conduct appropriate cost analysis to determine existing costs and make recommendations for future operations. So, it is a critical for a management accountant is how to budget.

Before a company can take necessary action, it must explore all the possibilities of the company and find the best strategies to increase its profitability. That means, management accountants must first analyze the various sales routes, products, services, and marketing functions to find profitable business models. Only on this basis can the most important decisions be made.