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Managerial Accounting is a system used by the internal management of an organization to plan, evaluate and control by using financial information that has been compiled.
Managerial Accounting information includes:
* Financial statements compiled by the management accountant for internal use
* Costs and revenues of the organization's products and services
* Performance reports which usually consist of comparisons of budgets and actual figures
* Budgets
Managerial Accounting aims at:
* Assisting in decision making by internal management
* Planning ahead for business activities
* Protecting the organization's assets
Management Accountant Certification
The Certified Management Accountant designation is allowed to applicants who complete a bachelor's degree or attain a minimum score on specified graduate school entrance exams. Applicants must have at least 2 years experience with managerial accounting work and pass a four part examination which covers financial statement analysis, risk management, valuation, working capital policy and capital structure.
Management qualifications include CIMA (Chartered Institute of Management Accountants), CMA(Certified Management Accountant), ICMA (Institute of Certified Management Accountants).
Management accountants usually start as junior internal auditors or cost accountants. Once they advance in the organization they can rise to positions such as internal audit manager, chief cost accountant or budget director.
Tasks of Management Accountants
Management accountants are responsible for providing decision based financial and operational information to the management of an organization. Their individual tasks are:
* Financial presentations for the organization's internal use
* Annual budgets, cash flows
* Price Modeling
* Cost Analysis
* Project evaluation of assets and Investments
* Resource allocation and utilization
* Profitability analysis
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