Management Accountant
Tasks & duties
Management accountants may do some or all of the following:
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analyse a business' financial and general operating information to identify trends and opportunities for development
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advise management or clients on financial reporting processes
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provide financial information to senior management, including monthly financial accounts, budget reports and activity-based costings (ABCs)
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review the validity of business cases for investment proposals
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assess the impact of changes in pricing, sales volume and costs that affect profitability
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evaluate non-financial indicators, such as stock turnover and the number of people in a company, and how these affect a business' performance or profitability
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prepare annual budgets and cashflows, and update forecasts regularly
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prepare information for management so that decisions can be made about the pricing of products and services
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undertake projects that will improve operating efficiency and profits
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be involved in project evaluation of assets and investments
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plan and supervise systems used to record income, spending and cashflow
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check costs such as wages, materials and equipment
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forecast and project future cashflow for the business
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identify areas of the business where inefficiencies may occur
Skills & knowledge
Management accountants need to have:
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knowledge of accounting, business and management methods
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knowledge of economics and marketing
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skill using accounting software
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analytical and problem-solving skills
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skill interpreting financial information
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communication skills
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report writing skills
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presentation skills
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organisational skills
They also need to keep up to date with technological changes affecting the occupation.
Entry requirements
To become a management accountant you need to have a commerce degree majoring in accounting, as well as membership through the Chartered Institute of Management Accountants (CIMA) or New Zealand Institute of Chartered Accountants (NZICA) qualification.
Secondary education
A tertiary entrance qualification is required to enter further training. Useful subjects include accounting, economics, English, and maths with statistics and/or calculus.
Tertiary education
To become a chartered accountant, membership through the New Zealand Institute of Chartered Accountants (NZICA) is necessary. All members must comply with the NZICA code of ethics and undertake continued training to ensure they are up to date with all accounting practice.
The Chartered Institute of Management Accountants (CIMA) in the UK also offers a specialist management accountant qualification which is now recognised (and growing) in New Zealand. The CIMA qualification requires three levels of exams and three years of practical work to be completed.
The first two years of study can only be done through a correspondence course with CIMA in the United Kingdom.
The third year can be done at the following tertiary institutes in New Zealand:
The third year can also be completed by correspondence course, or by sitting examinations through the NZICA.
In 2006 CIMA and the NZICA set up an alliance agreement. The aim of the agreement is to develop a specialist management accountant qualification for all accountants working in businesses in New Zealand.
Training on the job
Most management accountants are members of the New Zealand Institute of Chartered Accountants (NZICA) or Chartered Institute of Management Accountants (CIMA), and ongoing professional development is required to retain institute membership.
People who are not members of the NZICA or CIMA may still call themselves management accountants, but will find it harder to have their qualifications recognised by an employer.
Useful experience
Useful work experience includes:
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junior accounting roles in a commercial environment
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junior accounting roles in a public practice
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spreadsheet and database work
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work as an assistant accountant
Related courses
Accounting
Banking and Finance
Taxation Law
For more information, please refer to Career Services.
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