Managerial accounting is a unique discipline focused on identifying, analyzing, interpreting, and communicating financial data to help managers within the organization make smart business decisions. Also referred to as corporate accountants or cost accountants, managerial accountants play a prominent role in helping their organizations meet financial goals and realize good overall financial health. Managerial accountants are key figures in every small, mid, or large-sized company to handle essentially all financial matters pertinent to business strategy. From budgeting and taxation to asset management and internal auditing, managerial accountants are the jack-of-all-trades for analyzing the financial data needed to make strategic moves towards success in today’s competitive global business marketplace.

Salary

According to the Bureau of Labor Statistics, the average annual salary for all accountants employed across America is $72,500, which is equivalent to a mean hourly wage of $34.86. In particular, the 2015 Robert Half Finance & Accounting Salary Guide reports that the average salary for managerial accountants lies between $64,000 and $80,500 each year.

Beginning Salary

When just starting out in the managerial accounting profession, individuals with up to one year of full-time experience can expect to make between $44,750 and $54,750 annually. However, it’s important to note that managerial accountants in senior-level roles at large companies can break through the six-figure salary mark each year by earning up to $116,500!

Key Responsibilities

Managerial accountants are responsible for being involved in all of their company’s financial actions and transactions to maintain good financial stability. On a typical workday, managerial accountants may prepare financial statements, assess internal controls, prepare monthly budget plans, supervise other accounting staff, complete tax returns, manage the general ledger, and conduct compliance audits. At the senior level, managerial accountants will also coordinate accounting operations, hire new accounting staff, manage relationships with investors, and help executives build business tactics. In short, managerial accountants perform control functions to better inform company leaders on formulating their organization’s strategy.

Necessary Skills

In order to find success, managerial accountants must possess solid analytical skills to identify any financial issues in reports and suggest effective solutions to executive management. Having interpersonal skills is essential for managerial accountants to discuss their financial findings orally during executive meetings and verbally in writing comprehensive reports. Since accounting revolves predominantly around numbers, good math skills are a must for managerial accountants to accurately analyze, compare, and interpret complex financial data. It’s also helpful for managerial accountants to build strong organizational, leadership, managerial, computer, and strategic abilities for completing their daily duties under pressure.

Degree and Education Requirements

As with any other accounting field, managerial accountants must earn at least a bachelor’s degree from a regionally accredited four-year institution. Many aspiring managerial accountants get started with an undergraduate major in accounting, business administration, finance, statistics, or economics. While jobs in management accounting are available with a bachelor’s degree, those looking to soar up the company ladder will likely need to attend graduate school. Earning a Master of Science in Accounting (MSA), Master of Accountancy (MAcc), or Master of Business Administration (MBA) with a concentration in accounting is advised. Make sure you take courses related to valuation, capital structure, financial statement analysis, risk management, internal control, and cost analysis for the best managerial accounting preparation.

Pros and Cons of the Position

Though this position requires a lot of mathematical ability, being a managerial accountant sure pays off with a high average salary that can potentially reach six figures. Due to increasing globalization, there will be solid career prospects for managerial accountants, especially those with knowledge in international finance. Managerial accountants have the versatile chance to specialize their skills in a variety of industries needing accounting help. Plus, business often increases dramatically during tax season. As with any other career, becoming a managerial accountant has its downfalls too. Around 20% of managerial accountants work longer than 40 hours per week with tight pressure for deadlines. In addition to earning and maintaining CMA certification, managerial accountants also must take extensive continuing education credits to stay up-to-date on changes to strict accounting guidelines.

Getting Started

While earning an appropriate education, it’s a smart idea to gain practical hands-on experience in managerial accounting by completing a summer or part-time internship at a corporation. At first, you may need to start filling your resume with relevant accounting experience by working as a budget analyst, cost estimator, payroll clerk, junior internal auditor, or bookkeeper. Beginning managerial accountants often will advance to positions with more responsibility within two years and to senior positions within another three to four years. If you’re aiming for upper-level managerial accounting positions like controller, treasurer, and CFO, then you should consider earning the Certified Management Accountant (CMA) credential from the IMA. You’ll need to pass a two-part exam, comply with professional conduct standards, and possess at least two years of full-time managerial accounting experience.

Future Outlook

In general, the demand for managerial accountants is typically tied to the overall health of the global economy. Since our country is currently growing economically after the last recession, there’s expected to be a growing need for managerial accountants to prepare and examine their organization’s financial records. Thanks to recent corporate scandals, more managerial accountants will also be hired to help companies comply with tighter federal regulations on accounting practices. In fact, the Bureau of Labor Statistics states that the employment of managerial accountants and other accounting professionals will grow slightly faster than average at 13% before 2022. CMAs with an advanced education will likely have the best prospects in virtually any industry.

Unlike public accountants who typically focus on external reporting, managerial accountants specialize their financial background in presenting financial information used only within their employing company. As part of the executive management team, managerial accountants will provide financial analysis to inform shareholders, auditors, program managers, senior executives, and even the CEO. If you put in the hard work to become a managerial accountant, you’ll have the rewarding opportunity to have authority in oversee all internal accounting requirements of businesses.