what is managerial accounting

Managerial accounting is a specialized branch of accounting that deals with the financial and operational decisions made by managers to help maximize an organization’s performance. It considers all aspects of the business, such as costs, revenues, investments, and other expenses.

The information gathered from managerial accounting can be used to make better strategic decisions for the company to improve efficiency and profitability.

What Do Management Accountants Do?

Management accountants are responsible for providing financial and operational guidance to organizational leadership. They study a company’s operating costs, income, and profits to determine what areas of the business need improvement or what strategies can be adopted to increase efficiency and profitability.

Management accountants may also analyze the financial data from previous years or quarters and forecast what may happen in the future. They often assist with budget preparations and cost reduction measures. By analyzing this data, management accountants can work with their teams to develop new products, services, and processes which promote overall business growth.

Furthermore, management accountants often work closely with other departments, such as marketing or operations, to measure performance and track short-term goals versus long-term objectives. They can also provide analysis of pricing decisions and variable costs associated with a particular product or service line.

What Certifications Should I Pursue?

If you’re interested in pursuing a career in managerial accounting, there are several certifications you should consider obtaining.

The Chartered Global Management Accountant (CGMA) is one of the most prominent certifications available for aspiring management accountants today. This certification demonstrates knowledge across various specialties, including analytical decision-making skills, strategic planning abilities, risk management expertise and more.

Additionally, those seeking an edge in managerial accounting should consider pursuing a Certified Public Accountant (CPA) license from the American Institute of CPAs (AICPA). The CPA license provides individuals with additional skills needed to properly assess financial statements while meeting all professional standards set forth by AICPA members.

Exploring Careers in Managerial Accounting: Common Job Titles

If you’re interested in a career in managerial accounting, consider pursuing one of these common positions in managerial accounting:

  • Internal Auditor
  • Cost Accountant
  • Financial Analyst
  • Corporate Treasurer
  • Corporate Controller
  • Chief Financial Officer
  • Accounting Manager
  • Budget Analyst
  • Fixed-Assets Accountant

Get Help With Your Job Search

Are you ready to find the next step in your career? Contact the recruiting and staffing experts at Burchard & Associates. We help accounting and finance professionals find career opportunities in the St. Louis area and beyond. Check out our available opportunities or contact us today to learn more.