Management accountant

MANAGEMENT ACCOUNTANT“Innovative”

A person with a CIMA / B Comm Honours is qualified as a Management Accountant, responsible for provision of Financial Data, analysed to highlight Financial status for Management and providing internal futuristic analysis to ensure Immediate Survival and Long Term competitiveness of the Business

Operates with a dual reporting role in a Manufacturing / Services sector analysing and recommending Management with possible profit opportunities by the appropriate utilisation of the companies resourses

MANAGEMENT ACCOUNTANT“Innovative”

Compiles confidential information for Internal use and is visionary instead of historical in accordance to the needs of Management as opposed to external Standards and Guidelines

Measures productivity in terms of Profit Contribution by utilisation of Raw Materials, Labour and Overheads with Capital resources in terms of effective production capacity and price recovery achieved

Recommends various allocation of Resources to yield higher Profit Potential by eliminating the negative utilisation of any factor of production to achieve Growth in Productivity

MANAGEMENT ACCOUNTANT Aims and Objectives Introduce meaningful innovations by focused

implementation and value creation putting Culture before Process

Formulate / Design business Stategies Plan and construct business Activities Render tangible assistance to decision making Optimise usage of available Resources Safeguard Assets Provide crucial information for Financial Reporting Render a positive influence on Management control via

surveillance Provide overview of Internal structure / functions of

business Apply consistent disciplines when assigning internal values

and revenue attribution to various Business Units ie Transfer Pricing

Management Accountant – Manufacturing / Services

Management Accountants report into Financial Managers and Executives providing identified and measure analytical advice extracted from costing parameters supplied by Cost Accountants – usually in a graphic illustration to assist timeous decision making

Monthly Sales Revenue per Product Group Monthly Cost of Sales per Product Group Monthly Gross Profit prior to total expenses not

absorbed into production ie Business running costs Rolling Forecast of remaining months reporting until

year-end after input of Actual cumulative figures to date

Monthly Variance Analysis detailing the difference between Actual expenditure and Budgeted expenditure, together with a detailed Commentary informing Management of real reasons for any material deviations

Management Accountant – Manufacturing / Services The monthly Commentary Report is a narrative decision orientated

explanation, after consultation with persons responsible for controlling expenses and marketing

Management Accounting Reports highlight the following: Cost trends and sustainable change Level of Performance / Capacity utilised Competitors activities Global trends focus on the Enduring and not just the fashionable Problem areas and Technology threats Clear Strategic intent to discover and deploy new innovative

solutions to challenges

Management Accountants collect, interpret and formalise essential and strategic information to be utilised in producing Annual Budgets by interfacing with Cost Accountant to understand which factors of Production will impact on productivity


Continually reviews current Standard costs of raw Materials, direct Labour to complete task and absorption of direct Overheads across entire range of products

Regular capturing of Indirect costs (overheads) other than those related to production for accountability prior to Net Profit

Reviews and reconciles Inventory of Finished goods to General Ledger ensuring appropriate provision for Obsolescence is made by Management

Co-ordinates the Company Tender process ensuring updated costs are utilised and proper escalation is considered


Stimulates concepts into Financial Gain by providing in depth information to Management for better Planning, Development and Control over efficiencies of auditing, marketing, valuation, pricing and logistic activities

Management Accountant advises Executives of Factual Synergies which could evolve from mergers / acquisitions

Analyse, in depth, possible Product substitution and Technological advancement to ensure companies products remain competitive

Analyses volumes of Sales by unit and value to indicate Gross Profit which could be enhanced by fuller utilisation of Factory capacity or outsourced option, if restraints on Capital Expenditure are in place


Outside of manufacturing, the Services Sector (Banks, Media, Publishers and Telecommuncations’ acknowledge the necessity of Management Accounting as they earn their profits from Economical Management of their IT system deliverables

In the Services sectors IT costs are the biggest source of uncontrollable corporate spending after Salaries, Benefits and Property costs

Here Management Accountants effectively express, through their sound Costing backgrounds and analytical reporting skills, effective delivery to render / provide IT transparency

Often Management Accountants, after thorough analysis and market research, recommend to Management to outsource IT to contain costs as opposed to Internal Cost overruns


Management Accountant makes sensible and achievable Projections, advise timeously to reduce Cost overruns and avoid Optimistic Bias to reinforce disciplines demanded by Executives

Advise Executives of Strategic position, factors responsible now and in the future to support Strategic options suitable for Downturn or in preparation for Upturn

Recommend Strategic implementation according to Time-table and Business project management

Notify Board of current Risk / Strategies to ensure they are in line with Strategic planning


Operate within all areas of organisations in both Public and Private Sectors driving Success and Creating Value by applying Leading Edge Techniques and providing In-Depth Understanding of Business. Their focus on Commercial aspects are Forward Looking, Pre-empting and Adapting to the changing needs of Business

Design, implement and manage integrated information systems to combine Financial and non Financial data into meaningful decision making Reports

Design, implement and manage Transaction Processing Activities including Financial Accounting, Payroll, Purchases and Payments

Design, improve, measure and manage Business Processes to optimise the organisations use of resources

Act as an analyst and a catalyst to change by Commercial, innovative and Strategic insight

Management Accountant – Tasks/ Services provided

Variance Analysis Rate and Volume Analysis Business Metrics Development Price Modelling Product Profitability Geographic vs Industry or Client Segment Reporting Sales Management Scorecards Cost Analysis Cost Benefit Analysis Cost / Volume / Profit Analysis Life Cycle Cost Analysis Client Profitability Analysis

Management Accountant – Tasks/ Services provided

IT Cost transparency Capital Budgeting Buy vs Lease Analysis Strategic Planning and Market Positioning Strategic Management Advice Internal Financial Presentation and Communication Sales and Financial Forecasting Annual Budgeting Process Cost Allocation Principles Resource Allocation and Utilisation

Management Accountant - Competencies

Technical Competency and understanding = IT Economics Strong hands-on computer skills Well organised Results orientated and decisive Precise Analytical and sound Conceptional reasoning Commercially astute to identify potential problems early Strong communication and negotiation skills Provision of innovative and creative solutions Ability to work at all levels Flexible – Positive Professional Pragmatic and

Participative Work under pressure / Self Driven and enthuisiastic Technical competency and understanding Logical application of Mathematical skills

Management Accountant - Questions and Answers

Do Man Acc do physical stock counts Y / N Do Man Acc perform Time and Motion Studies Y /

N Do Man Acc calculate Standard cost of raw materials

direct labour / overheads Y / N Do Man Acc allocate indirect overheads to be absorbed by

products Y / N Do Man Acc identify obsolete stocks Y / N Do Man Acc compile variance analysis Y / N Do Man Acc calculate historical costs from purchases

Y / N Do Man Acc upload new Bills of Material Y / N Do Man Acc allocate overheads to cost centres Y /

N Do Man Acc report on cost of units sold Y / N


Do Man Acc deputise for Financial Accountants Y / N Do Man Acc motivate Operational and Capex spend Y / N Do Man Acc control staff :

Procurement Y / NDebtors Y / NHR Y / NInternal Audit Y / NPayroll Y / NDistribution Y / N

Do Man Acc update Costing Indexes Y / N Do Man Acc produce Costing parameters for budgets Y / N Do Man Acc compile Income Statements Y / N Do Man Acc produce Balance Sheets Y / N Do Man Acc submit Internal Audit Reports Y / N


Do Man Acc liase with Procurement department Y / N Do Man Acc produce scientific allocation of overhead Y / N Do Man Acc liase with Sales and Marketing Y / N Do Man Acc revue Standard Costing parameters Y / N Do Man Acc advise revision to selling prices Y / N Do Man Acc calculate factory product cost variances Y / N Do Man Acc liase with Production staff Y / N Do Man Acc advise revision to selling prices Y / N Do Man Acc recommend change of suppliers Y / N Do Man Acc control outsourced component suppliers Y / N


Do Man Acc analyse sources of Profit Y / N Do Man Acc measure Profit contribution Y / N Do Man Acc highlight Capital utilisation Y / N Do Man Acc indicate Production efficiencies Y / N Do Man Acc indicate Resources wasted Y / N Do Man Acc submit PAYE, VAT, WCA & Skill Levy Y / N Do Man Acc analyse Sales Reports Y / N Do Man Acc review Insurance cover Y / N Do Man Acc prepare Annual Operating Budgets Y / N Do Man Acc produce Sales and Marketing Forecasts

Y / N Do Man Acc compile Year-End Financial Statements

Y / N

Management Accountant - Questions and Answers Do Man Acc drive a Business team Y / N Do Man Acc report internal control changes to Finance Y / N Do Man Acc develop new product costings Y / N Do Man Acc perform operational research Y / N Do Man Acc develop business drivers / metrics Y / N Do Man Acc report to external sources Y / N Do Man Acc provide historical information Y / N Do Man Acc extract Sales Management Scorecarding Y / N Do Man Acc report on clients profitability Y / N Do Man Acc produce Financial Accounting reconciliationsY / N Do Man Acc highlight systems and regulatory risk Y / N Do Man Acc design and provide internal and confidential

information to Management Y / N