Do you have an interest in all matters relating to finance? If you think you can handle managing budgets and increase the profitability of a firm, then you can indeed think of cost accountancy as a serious profession for you. Cost Accountant analyses and handles the management of financial services of a firm. They prepare reports on financial statements and based on that guide the firm towards profitability in the best possible manner. They are financial specialists who determine the actual costs ascertained with providing a service and are responsible for reducing a company’s financial waste and increasing profits. Just like a Risk Advisor advises the company regarding potential risks by auditing its services. Read this comprehensive blog, to know how to become a Cost Accountant in real life!
This Blog Includes:
What Does a Cost Accountant Do?
Some of the particular day-to-day tasks of a Cost Accountant can be as follows:
- Evaluating and comparing costs, revenue, and budget of the different production methods of a firm.
- Analyzing capital budgeting methods of a company and preparing its report
- Controlling data accumulation procedures and systems
- Preparing financial forecasts with the purpose of decision making
- Evaluating the company’s cost-benefit analysis for improving profitability
Educational Requirements to Become a Cost Accountant
To become a Cost Accountant, a Bachelor’s degree in Commerce or Accounting is beneficial. By studying these courses, a strong knowledge of finance, economics, banking, business laws, and information technology is built that is the desired skills of a Cost Accountant. The minimum requirement for a cost accounting job is a bachelor’s degree in the Commerce or Accounting field. Though many recruiters seek employees with a master’s degree in accounting or an MBA in Accounting, it really all depends on the job profile.
Top Universities for Pursuing Accounting
- Harvard University
- Stanford University
- Massachusetts Institute of Technology
- Northwestern University
- The University of Chicago
- University of Virginia
- Dartmouth College
- University of Pennsylvania
Further, interested candidates can even pursue CMA (Certified Management Accountant), a recognized qualification by The Institute of Cost and Works Accountants of India (ICWAI). CMA is perhaps one of India’s toughest professional exams that is pursued by accounting and commerce students. Though challenging, clearing this exam is worth it for a career in Cost Accounting as well as in the business world. The CMA consists of three levels:
- CMA Foundation
- CMA Intermediate
- CMA Final
Diploma Courses in Cost Accounting
- Basics of Cost Accounting
- Variance Analysis
- Managerial Cost Accounting
- Executive Diploma in Cost and Management Accounting
- Various forms of Costing
- Diploma in Financial Accounting
Must Read: MBA in Accounting
Career Prospects of a Cost Accountant
Career prospects of a Cost Accountant are spread across all industries. Some people go for banking and insurance sectors while others go for government services. Some Cost Accountants even establish themselves as independent consultants or begin a career as teaching professionals. Apart from this, some of the specific job profiles of a Cost Accountant are as follows:
|Job Profile||Job Description|
|Chief Auditor||The chief auditor is responsible for reviewing the company’s financial records, monitoring the audit system, and preparing reports on the financial statement.|
|Financial Consultant||They work with clients and offer advice regarding taxes, investments, or financial plans.|
|Financial Controller||A financial controller is responsible for monitoring internal controls, compliance audits, analyzing financial information, etc.|
|Cost Controller||A cost controller is responsible for analyzing and evaluating the costs related to the projects. For any firm, the expenses, budgets, and invoices are extremely important for profitability, and for this, a cost controller is required.|
Top-Notch Recruiting Firms for Cost Accountants
- Bain & Company
- AT Kearney
- Boston Consulting Group
Cost Accountants have great potential for growth, and opportunities for them are numerous. Remuneration and perks associated with it are also good. A cost accountant has been and will continue to be a necessary position in all the industries across the globe. According to the U.S Bureau of labor statistics there will be an average growth of cost accountants from the year 2018-2028.
Hope you liked our blog on how to become a Cost Accountant. Let us know your feedback in the comment section below. If you want to know more about universities, applications, admissions and courses at top universities across the globe, get in touch with Leverage Edu experts! Book a free counselling session now!