Learn about Accounting Managers

Accountants have several specialities and can work in areas like cost accounting, public accounting, auditing, management accounting etc. In other fields, the tax returns, budget reports, public disclosure, and stockholder’s report can also be prepared by accountants. Sometimes, they also investigate and scan documents for potential fraud in their respective fields. Accounting managers are found in every industry to supervise the accounts department. 

Definition of an Accounting Manager

The accounting manager is defined as a person who supervises the accounts departments or the accountants of the workplace. They are also responsible for creating unique systems or processes for analysing and reporting financial information. They also make sure that the organisation follows statutory and legal requirements. If the business is vast, then the accounting manager tracks financial data, makes annual budgets, and shares their views on the company’s financial decisions.

Functions of Management Accounting

Now that we have learnt the definition of an accounting manager, let us understand the various functions they are in charge of. Management accounting is a process through which managers can take short- and long-term decisions by making reports about the business operations. This process helps the business grow successfully with the help of identifying needs, analysing, measuring, and passing on the information to the managers. Some essential functions of management accounting are:

• Helping in Make-or-buy Decisions

Management accounting helps get insights on production and cost. These are the major deciding factors when it comes to purchasing choices. Data from managerial accounting at both strategic and operational levels empowers decision making. 

• Provides Data

Management accounting is an essential source of data that aids in management planning. Documents and accounts, which store a large quantity of data of the enterprise, are required to plan the company’s future. 

• Communication

Management accounting plays a vital role in communication as different types of management require various types of information. The lower management asks for detailed information in very short intervals, such as weekly or daily. The middle management asks for information regularly, maybe monthly or twice a month. The top management asks for all the details in long intervals, such as 3 or 6 months.

• Modifies Data

Management accounting frequently modifies the accounting data by rearranging them. This ensures that the available data is useful. By arranging the data in similar groups, it is easy to use and understand. The data is wholly classified and compiled for the further requirement of management decisions.

• Coordination

Management accounting helps the management coordinate with other activities in the company. For example, they first make the functional budgets and then coordinate with the company’s activities by integrating the functional budget into the master budget. 

Accounting Manager: Qualifications

To become an accounting manager, an individual will need a college degree, experience before applying for the job, and good technical skills for an open management position. The person should generally possess specialisation in finance or accounting. It is also essential to graduate from a college that is recognised by the organisations. 

Apart from this, most employers only consider individuals with a CA and MBA-Finance. You will also need 3 to 5 years of experience as a supervisor in finance to get into an MNC. 

Responsibilities of an Accounting Manager

• Analyse Financial Documents

One of the responsibilities of an accounting manager is to prepare, review, and analyse financial documents such as budget reports, financial reports of the organisation, tax returns, and many more. They are responsible for ensuring that the financial documents meet the regulatory and legal requirements. Additionally, they are responsible for giving suggestions to improve financial expenses and correct any inefficiencies.

• Looking After the Accounting Team

The accounting manager is responsible for managing the whole accounting team and should also help improve staff performance, create goals, and provide feedback. They are in charge of the recruiting process and can hire or terminate an accountant. 

• Financial Information

The Accounting Manager is responsible for organizing financial information, including tax and budget information, audits and cost reports. The financial documents created by the accountants or the staff are ultimately reviewed by the managers and suggest improvements in the document. 

Conclusion

An accounting manager plays a crucial role in any business or organisation. They are responsible for all the financial actions and decisions made in a company. Generally, an accounting manager looks after or supervises staff accountants through an organised system. They make sure that the organisation follows all the regulatory and legal norms. To become an accounting manager, you will require more than a mere degree. It requires 3 to 5 years of experience in the field as well as a master’s degree.