Management accountants in industry and commerce manage their company’s finances, assess financial performance and advise on ways of improving profitability and growth.

The work of a management accountant may include:

• preparing regular financial statements and accounts
• monitoring spending, costs and budgets
• analysing sales figures and making business forecasts
• recommending ways to increase profits
• liaising with other managers and making business decisions
• carrying out internal audits and provide external auditors with company reports and financial data
• managing a team of accounting technicians and finance clerks
• overseeing the company's payroll, credit control and stock control systems.

A key role for management accountants is forecasting and planning. When business managers need to make a decision they use a management accountant’s expertise to help them predict the costs and financial implications.

The work differs in several ways from private practice accountants, who usually work for accountancy practices and deal mainly with audits, tax and accounts for fee-paying clients. See the Private Practice Accountant profile for more details.

Hours and Environment

Management accountants normally work 9am to 5pm, Monday to Friday. They may need to work extra hours at busy times, such as the end of the financial year. Flexible working is common. Part-time work and job sharing may also be available.

They are usually office-based. They may sometimes need to travel to meetings - depending on the company this could include local, UK-wide or overseas travel. Dress code is usually formal.

Skills and Interests

To be a management accountant you should:

• have excellent mathematical skills
• be able to plan and present information
• understand business and economics 
• enjoy analysing data and solving problems
• be able to create a good rapport with clients and colleagues
• have good negotiating skills and be able to act on your own judgement
• have information technology skills
• be discreet, tactful and assertive
• be able to motivate and manage a team.

Entry

All accountancy training involves some strategic business accounting, but the Chartered Institute of Management Accountants (CIMA) is usually considered to be the most business-focused for management accountants.

CIMA training involves two stages of examinations:

• CIMA Certificate in Business Accounting (five computer-based exams)
• CIMA Professional Qualification.

Your entry point will depend on your previous qualifications and experience.

You do not need any set qualifications to begin studying with CIMA, although you will need a good standard of maths and English. Instead, you must pass or gain exemptions from the CIMA Certificate in Business Accounting, which is CIMA's entry-level qualification.

If you have a relevant degree such as accounting, finance or business, or a professional qualification from another accountancy body, you may be exempt from some or all of the exams in the CIMA Certificate. You may also be exempt from some exams in the CIMA Professional Qualification stage (see the Training section). See the CIMA website for full details of exemptions.

If you are a fully-qualified accounting technician with Association of Accounting Technicians (AAT) Technician Level, you can usually bypass all of the CIMA Certificate exams and go straight to the Professional Qualification stage. See the Accounting Technician profile for more details about starting at this level.

You can also miss out the CIMA Certificate and start at the Professional Qualification stage if you have the Open University’s Certificate in Accounting.

If you have any other academic qualifications (including a degree that is not accountancy or business-related), you must pass all five CIMA Certificate exams before being able to start the CIMA Professional Qualification.

If you qualify with CIMA you can conduct internal audits within your own company, but you are not legally able to perform external audits on other companies. This division is normal in management accounting. See the Private Practice Accountant or Auditor profiles for further details of qualifying routes with other professional bodies.

Some employers ask for CCAB qualifications in their entry requirements. The CCAB is the Consultative Committee of Accountancy Bodies, an advisory organisation made up of six of the main professional accountancy bodies: ACCA, ICAEW, ICAS, ICAI (all dealing mainly with private practice), CIMA and the Chartered Institute of Public Finance Accountants (CIPFA). There is no single CCAB qualification - employers in this case will accept accountancy qualifications from any of these six professional bodies. For more information on CCAB see contacts below.

Training

After passing or being exempt from the CIMA Certificate in Business Accounting, you must pass the CIMA Professional Qualification, which involves:

• six exams at Managerial level, leading to the CIMA Advanced Diploma in Management Accounting
• three exams at Strategic level
• a final Test of Professional Competence in Management Accounting, based on a detailed business case-study.

Each paper in the Professional Qualification usually takes between three and four months. You can study full- or part-time, or through distance learning providers. You can also buy textbooks and study independently for exams if you prefer. See the CIMA website for details of course providers and exam centres.

As well as passing the Professional Qualification exams, you must also gain at least three years’ supervised practical experience. During this time you must keep a training record and be assessed by your employer. After passing all the exams and completing the work experience, you will become an associate member of CIMA and qualify as a chartered management accountant (ACMA).

Alternatively, you could study with the Association of Certified Chartered Accountants (ACCA), but choose the business management modules instead of audit and taxation options in Part 3 of your training. See ACCA website for further details of syllabus and entry requirements.

The Institute of Financial Accountants (IFA) also offers training for those wanting to work in financial management. IFA is a non-chartered organisation with training at Technician, Associate and Fellow levels. See IFA website for further details.

After qualifying, you could choose to take a Masters of Business Administration (MBA) degree, which may help you to further your career in financial and strategic management.

Opportunities

The demand for accountants in all sectors is growing and work is available in all parts of the UK. Management accountants could also become self-employed management consultants.

Once qualified, accountants can move between private practice, the public sector and industry and commerce to gain experience and help career prospects. In larger organisations, promotion to senior management is often possible.

Annual Income

Figures are intended as a guideline only.

Salaries for management accountants vary depending on location and the size and type of firm. Salaries are likely to be higher in London than in the rest of the country.

Trainee and part-qualified accountants could earn between £16,000 and £23,000 a year. 
Qualified management accountants could earn £25,000 to £40,000 a year.
Finance directors could earn £50,000 to £120,000 a year.

Further information

51 Gresham Street
London
EC2V 7HQ
Tel: 0845 257 3772 26 Chapter Street
London
SW1P 4NP
Tel: 020 8849 2251 2 Central Quay
89 Hydepark Street
Glasgow
G3 8DT
Tel: 0141 582 2000 Burford House
44 London Road
Sevenoaks
Kent
TN13 1AS
Tel: 01732 458080