How to become a management accountant

How to become a Management Accountant

Becoming a management accountant involves a combination of education, professional certification, and relevant work experience. Here is an overview of the pathway to the career:

High School Diploma
Complete your high school education or an equivalent qualification. Focus on subjects like mathematics and computer science, as they provide a foundation for understanding the principles of accounting. Classes in English and English composition are key to begin building communication skills, which are also important, as management accountants often present findings to non-accountants, including CEOs and lawyers.

Bachelor’s Degree
The basic requirement to work in management accounting is a bachelor’s degree, usually in accounting, finance, or business administration. Coursework typically includes subjects like financial accounting, managerial accounting, cost accounting, taxation, and financial management. Courses in economics, statistics, business law, and information systems are also beneficial.

Work Experience and Development of Key Skills
Start working in entry-level accounting or finance positions to gain practical experience. Positions such as junior accountant, financial analyst, or accounting assistant can provide valuable insights into financial operations and management.

Cultivate essential skills for management accounting, including analytical and critical thinking, attention to detail, proficiency in accounting software and financial modeling, strong communication abilities, and knowledge of financial regulations and standards.

Professional Certification
Obtain a professional certification to enhance your credentials and career prospects. The Certified Management Accountant (CMA) designation, offered by the Institute of Management Accountants (IMA), is highly regarded in this field, and often essential for career advancement. To earn the certification, candidates must hold a bachelor’s degree from an accredited college or university, have at least two years of work experience in management accounting or financial management, and pass the rigorous two-part CMA exam covering topics such as financial planning, analysis, control, and decision support.

Master’s Degree (Optional)
While not always required, pursuing a master’s degree in accounting, finance, or business administration (MBA) can provide a competitive edge and a deeper understanding of advanced accounting principles and management practices. Some roles, particularly in larger organizations or for higher-level positions, may prefer or require candidates to have a graduate degree.

Advanced Positions
As you gain experience and demonstrate your expertise, seek advanced roles such as senior management accountant, financial controller, or finance manager, where you can take on more responsibilities and contribute to strategic decision-making within the organization.

Continuing Education
Management accountants need to stay current with the latest developments in accounting standards, financial regulations, and industry best practices. This involves ongoing professional development through continuing education courses, seminars, workshops.

Additional Certifications and Professional Organizations
In addition to the preeminent Certified Management Accountant (CMA) designation, there are several other certifications that can enhance the management accountant’s credentials and career prospects:

• Certified Public Accountant (CPA) – While not specific to management accounting, the CPA certification, awarded by the American Institute of Certified Public Accountants (AICPA), is widely recognized and respected. It demonstrates a high level of accounting knowledge and adherence to ethical standards. Many management accountants pursue the CPA certification to broaden their expertise and career opportunities.
• Chartered Global Management Accountant (CGMA) – This certification is a joint designation offered by the AICPA and the Chartered Institute of Management Accountants (CIMA). It focuses on strategic management, financial management, and leadership. The CGMA designation is particularly valuable for management accountants involved in strategic planning and decision-making.
• Certified Financial Manager (CFM) – This certification, offered by the Institute of Management Accountants (IMA), focuses on financial management and strategic financial decision-making. It is intended for professionals who want to demonstrate their expertise in financial planning and analysis.
• Certified Business Manager (CBM) – Offered by the Association of Professionals in Business Management (APBM), the CBM certification covers a broad range of business management skills, including financial management and strategic planning.

Along with the certifying bodies referenced above, the following organizations also offer resources, access to industry research, and networking and professional development opportunities:

• Institute of Internal Auditors (IIA) – While focused on internal auditing, the IIA provides resources and certifications that are valuable for management accountants involved in internal control, risk management, and compliance.
• Global Management Accounting Research Symposium (GMARS) – GMARS aims to promote a ‘global village’ of management accounting research by bringing together a diverse set of the highest quality research papers, plenary speakers, and researchers from around the world, providing a broader appreciation and understanding of the many theoretical perspectives and research methods that are used to study management accounting practices.