Managerial Accounting is also known as cost accounting and management accounting. It is a branch of accounting that deals with the process of identification, measurement, interpretation, analysis, and communication of information to managers for the pursuit of organizational goals. Managerial Accounting is different from financial accounting as its aim is to assist the management to make well-informed decisions. The scope of Managerial Accounting is wide as well. Keep reading to know more about the importance of managerial accounting, its objectives, jobs, and salary.
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Importance of Managerial Accounting
Managerial accounting aims to assist the management of an organization to effectively perform its functions such as planning, organizing, directing, and controlling. They help the management to carry out these tasks in an efficient way by performing their roles. Some of them are listed below.
- Managerial Accounting delivers accurate data which is helpful in planning.
- They deal with the analysis of data. The data is presented after calculating the ratios and projecting trends. It is then used for decision-making. For example, categorizing items on the basis of supplier, and territory.
- Managerial Accountant assists to conduct meaningful discussions in a company. For example, they explain the organizational feasibility of various segments of a plan, the progress of the plan, and the roles played by different groups to implement the plan.
- They help in transforming a company’s strategy and objectives into feasible business goals. For example, by implementing budget control and standard costing.
- Managerial Accounting also deals with qualitative information that can’t be measured in the form of money. For example, industry cycles, and research and development strength can be collected by conducting surveys.
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Objectives of Managerial Accounting
Below are the main objectives of Managerial Accounting.
- Gather and analyze the data through which the experts can identify the company’s growth and market trends.
- Gather information that is helpful to make accounting decisions and evaluate the company’s operations. Thus, helping in profit maximization.
- Assist in making appropriate business decisions. The information provided by the managerial accountant is used to strategize business plans for the benefit of the company and identity the areas where improvement is required.
- With the help of financial documents trends analysis help in identifying inconsistencies. It will help the management to change the existing methods to reach the business goals.
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The eligibility requirements for MSc Managerial Accounting are as follows.
- An undergraduate degree from a recognized institution with a GPA of 2.75 on a scale of 4.0.Those who score less than this score needs to provide further documentation.
- English proficiency score. That is, IELTS/TOEFL/PTE scores.
- GRE/GMAT scores have to be submitted as well. The minimum GMAT score of a total of 500 or a GRE score of 305 is needed for international student admission.
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The syllabus for MSc in Managerial Accounting includes foundation courses and required courses.
|Foundation Courses||Required Courses|
|Financial Accounting||Income Tax Accounting II|
|Business Statistics||Accounting Information Systems|
|Intermediate Accounting||Advanced Financial Accounting Theory|
|Principles of Finance||Business Consolidations and Governmental Accounting|
|Business Law I||Strategic Cost Management I|
|Income Tax Accounting I||Auditing Theory and Applications|
|Principles of Microeconomics||Advanced Business Law|
|Current Issues in Financial Reporting|
|Auditing: Professional Standards & Practices|
|Data Analytics in Accounting|
Below is the list of the best universities where you can pursue Managerial Accounting from.
|University Name||Course Name||Tuition Fees|
|The University of Wisconsin-Milwaukee||MS in Management Accounting||$25,650/INR 21.02 lakh per year|
|Southern New Hampshire University||MS in Management Accounting||$25,650/INR 21.02 lakh per year|
|University of York||MSc Accounting and Management||EUR 29,950/29.65 lakh per year|
|Queen Mary University of London||Accounting and Management MSc||EUR 28,950/INR28.65 lakh per year|
|University of Bradford||Finance, Accounting, and Management MSc||EUR 18,566/INR 18.38 lakh per year|
Management Accountant Jobs
The most common management accountant jobs are as follows.
|Staff Accountant||Is responsible for account review and reconciliation, journal and ledger entry, financial report preparation, cost accounting, and internal control testing.|
|Financial Analyst||Deal with financial modeling, budgeting, tracking results, and performance, and preparing forecasts.|
|Accounting Manager||Be responsible for creating strategies for the growth of the entire products and services of the company|
|Manager/Director- data analytics||Finalize and implement strategies that focus on profitability and cost containment. Also ensure, that priorities and decisions are built into the planning processes in the organization|
|Manager/Director- strategic planning||Finalize and implement strategies that focus on profitability and cost containment. Also ensure, that priorities and decisions are built into the planning processes in the organization|
|Vice president- Financial planning and analysis||Report to CEO and is responsible for capital requirements of the company, maintaining the relationship between lenders and investors, evaluating acquisition opportunities|
|Treasurer||Is accountable for the cash operations, forecasts, lender relationships, and stock plans|
|Controller||Manages financial reporting and accounting operations|
|CFO||Report to CEO and is responsible for capital requirements of the company, maintaining the relationship between lenders and investors, evaluate acquisition opportunities|
Management Accounting Salary
Management accounting salary in India is INR 9 lakh per annum. It is the average salary earned by an Indian employee. The managerial Accounting salary in other countries is as follows.
|Country||Average Salary (per annum)|
|U.S.A||$70,735/INR 58.51 lakh|
|U.K, London||EUR 44,572/INR 39.15 lakh|
|Australia||$ 97,695/53.77 lakh|
The scope of managerial accounting is wide and is useful in several company operations. Management accountants are responsible for rearranging information on financial statements. As a result, management requires the data to enforce decisions. Managerial accounting helps to find out the cause and effect of the financial results, use easy-to-understand techniques, and check the impact of the business decisions. Moreover, it is used to set business goals, formulate plans, and compare the performance of different departments.
As a result, an individual having knowledge of managerial accounting can work as a cost accountant, financial analyst, accounting manager, financial manager, budget director, manager of internal auditing, controller, treasurer, financial vice president, chief financial officer, and corporation president.
Ans: Providing up-to-date information to managers is the main aim of managerial accountants. The purpose of this aim is to help them make informed decisions about running a business.
Ans: Planning, decision-making, and controlling are the 3 main pillars of managerial accounting.
Ans: Managerial accounting is called cost accounting or management accounting as well.
Ans: Some examples of managerial accounting are budgeting and forecasting, job costing, and cash flow analysis.
Managerial Accounting plays a crucial role in drafting financial statements for the internal use of an organization. With the help of management and accountants companies can make appropriate decisions and draft a true financial picture. Managerial accountants help an organization to identify market trends, and company growth, conduct meaningful discussions, and identify inconsistencies. To discover more articles like this, visit the study abroad experts.