Why Management Accounting is a Great Profession
Why Management Accounting is a Great Profession?
Management accountants find employment opportunities in a variety of work settings and industries. Although each organization has a specific set of challenges and opportunities, small or large, public and private companies all require great accounting talent to stay in business.
Every organization out there needs a management accountant to help drive and optimize the business.
Far from the transactional work that used to define accounting a generation ago, the state of management accounting today and the outlook for tomorrow appears very bright to those in this field.
Here's what management accountants love about their work:
·??????Management accounting is an ever-evolving profession that provides a meaningful way to make a living and build influence at work.
·??????There are many opportunities to advance as your career progresses.
·??????Management accountants' accounting skills, business knowledge, and experience are valued in every organization, industry, and geography. Management accountants know their work is valued and appreciate respect from their peers.
·??????The profession offers the potential to advise or be part of a senior leadership team in any environment or industry.
·??????The earning potential and financial rewards can be significant. The profession offers excellent flexibility to find a career that also works for your personal and family life.
As you'll learn in this section, a career in management accounting is not only in high demand and well-paid, but it offers many opportunities to grow professionally and personally.?Management accounting is an excellent choice for those who want a career with variety, upward potential, and visibility with upper management.
Doing Work that Matters
One of the best parts of being a management accountant is developing deep business knowledge and relationships with peers, colleagues, and executives.
Because management accountants are true partners in Goal Setting, Planning, Controlling, Decision-making, and Problem-solving, they are in the loop with significant internal developments and the most important meetings. The management accountant is trusted with valuable information and is counseled for their opinion on all sorts of matters.
On the other hand, financial accountants and consultants have a lesser degree of job satisfaction derived from developing a deep level of specific mastery and knowledge working for a single employer over several years.
Rather than knowing a lot about a few things, they know a few things about a lot. For that reason, financial accountants are usually kept at the periphery and tasked with doing basic tasks that can be outsourced when an organization hires them.
Over time, the value of managerial accountants compounds as their knowledge in the business grows, and they become the go-to source for many requests.
Career security comes with this position, as the role cannot be quickly replaced or done cheaper somewhere else with an equivalent level of quality.
No "Busy Season" Hours
Let's be straight; financial accounting vs. managerial accounting is not a "one is better than the other" comparison. To different people, they are both suitable for various reasons.
With that in mind, financial accountants in public firms and consulting environments must be aware that typical workweeks will extend to 60-80 hours in the first few years, at a minimum. With tax season, many professionals are pushed to their limits and struggle to maintain their mental and physical health.
If you don't mind working long hours for 10, 15,20 years to reach partner one day, then it could be the right call.
Management accounting typically does not have this problem.
Most organizations have standard office hours of around 40-50 a week. Sometimes an unexpected crisis or crunch period will require additional effort, which rarely leads to a prolonged sacrifice of family and weekend activities. Management accounting is far more balanced and sustainable than the alternative.
Develop In-Depth Knowledge Of Business & Operations
Because management accountants work with many other people at various levels in the hierarchy, this career path is excellent for obtaining detailed knowledge and awareness of each function. Over time, accountants can build relationships and learn from other professionals in supporting disciplines to understand how the business puzzle pieces come together.
Because accounting is central to all of the functions in an organization, professionals here have an ideal position to learn the business and connect the dots.
领英推荐
For example, it is not uncommon for management accountants to:
·??????Work with the supply chain on optimizing routes on one day,
·??????Spend the following day with the purchasing departments to investigate unexpected variances and plan next year’s pricing estimates, and then
·??????After that, spend the day performing an ad-hoc analysis to determine whether a new product line should be launched.
Because of the variety of experiences, management accountants can gain a deep appreciation of the system, not silos, of business. Much of this information can only be obtained once trust and relationships are established.
Autonomy And Adding Value
Besides the regular monthly, quarterly, and annual financial close schedule, much of each month's work is at the discretion of the management accountant. While they do not get complete freedom in deciding what they will do or not, they have a range of flexibility that allows them to explore and learn.
Management accountants can often step into a new role, identify better and different ways of working, implement those changes, and then continue along to help peers or other departments work smarter. As time is saved through automation and process improvements, time can be reinvested elsewhere to free up resources, improve analysis, or solve a challenging problem.
Because management accountants are so knowledgeable about the organization's financials, their opinions and perspectives are highly valued. They are often pulled into various discussions that allow them to master the ins and outs of the business and industry.
Lead The Technology Revolution
Management accountants are also very well positioned to take a leading role in supporting their organizations' advancement to the next generation of process automation, business intelligence, integrated reporting, and machine learning.
In this fast-paced world, increasing competition and new technologies are quickly changing how we do things; businesses must stay ahead at all levels to not just survive but thrive.
As management accountants have access to an enormous volume of data from all over the organization, they should become most familiar with it.
They can learn and deploy new tools and techniques to unlock the value of the data and transform it into insights. They can also demonstrate leadership in improving how their organization generates, accesses, and uses the data.
For example, with business intelligence, management accountants can take the lead in designing dashboards for each business function that:
1.????Automates activities previously done manually while
2.????Providing greater insights than ever before, and
3.????Adds the crucial service aspect to anticipating and solving others’ needs.
Unfortunately, many organizations still lack the awareness, talent, and energy to bring these innovative new technologies to fruition. There is a large and growing gap between organizations leading with best-in-class tools and those stuck in the last generation.
As a result, management accounting professionals with strong technology aptitudes and skills are in great demand to help laggard organizations catch up. Unlike some fields where the accessible and low-hanging fruit opportunities are long-gone, management accounting is full of untouched process and system improvement opportunities.
The world of management is ever-changing, with new challenges popping up almost daily. If change and technology are exciting, consider this career seriously.
Career Outlook
According to the U.S Bureau of Labor Statistics (BLS), accountants and auditors of all types have a promising future, with job prospects projected at a 7% growth rate through 2030. With many more baby boomers retiring within the next decade, opportunities will become more available.
Management accounting is also one of the safer occupations in the economy. Boom or bust, every company needs these professionals in place to run an accounting function and close the books.
During the Covid-19 pandemic, when many organizations furloughed employees, management accountants became even more critical. Organizations need to adjust to the changing economic situation quickly, requiring business insights from trusted professionals to guide their strategies.
A key point here is that the nature of management accounting has been rapidly changing and continues to evolve. Traditionally, accountants would maintain the books and records. However, today's management accounting career requires that management accountants serve as strategic partners.?