Question

This week, you'll be introduced to accounting, the accounting process, the primary options employed to structure organizations, the primary types of businesses, the accounting equation, and the primary financial statements. In my experience, management accountants (i.e., those who work directly for an organization) can provide significant contributions (aka, value added) as business partners working as members of management teams. Public accountants also can provide significant contributions by providing external, independent support services.

As you've seen, a wide variety of career options are available for individuals who wish to pursue careers in accounting. Which career path or specialty area interests you the most? Why?

Answer 1

Accounting is one of the most exciting and rewarding profession. Considering the wide career options available, an accounting professional can choose to specialize in one of the fields and make a rewarding career out of it. An accountant can work within an organization as a management accountant and not only take care of the books and financials of the organization but also partner with the business to help it grow. On the other hand, public accountants are specialist who can help conduct audit, provide technical or specialist expertise to clients. This again is a very wide domain.

Personally I am more inclined towards building a career as a management accountant and specialize in financial planning role. I feel this role, provides an opportunity to work closely with the business and effectively act as a partner to the business. Following are key contributions that can be expected out of a management accountant:

1. Book Keeping - Processing and recording transactions at the same time ensuring timely closure of books for reporting purposes.

2. Preparation of financial statements - As an accountant, one of the core responsibilities would be to prepare financial statements as per applicable standards. These statements act as financial barometer for the company and helps not only external stakeholders but internal management also to take decisions.

3. Budgeting and Forecasting - A management accountant plays a key role as a financial planner for the company. He helps the business set right targets which fall in line with its objectives. As a forecaster, he is able to guide the business and help them in taking corrective actions so that the set targets are achieved. Setting up long range plans, creating business plans help tracking the performance of the business and also stimulates its growth.

4. Pricing - A management accountant plays a pivotal role in ensuring products and services are sold at the right prices and they play a key role in contract negotiations. Since an accountant is involved in the processing and transaction aspect, he has a very good idea about the total cost a business is spending in manufacturing a product or rendering a service. Hence he plays a very important role in ensuring products are sold at the right price and as per agreed and approved margins.

5. Cost Control - A management accountant also helps in keeping tight control over cost and actual spends. He keeps a track of actual spends versus budget and also helps in negotiating other vendor contracts. This role ensures businesses do not over spend and end up making losses.

Stated above are few important roles that a management accountant plays in an organization. In essence, the fact that the role of a management accountant is of a business partner is the most exciting aspect. The above roles played by a management accountant duly prove that they are a very integral part of an organization and I see myself excelling in such a role in the future.