What Is Management Accounting?
The Chartered Institute of Management Accountants is the world’s largest body of professional management accountants, offering the most relevant finance qualification for businesses. It defines management accounting as the combination of accounting, finance and management with the leading edge techniques needed to drive successful businesses.
The Management Accounting Skillset:
Qualified members work across an organisation not just in finance. In addition to strong accounting fundamentals CIMA teaches strategic business and management skills:
Analysis - they analyse information and use it to make business decisions. Strategy - they formulate business strategy to create wealth and stakeholder value. Risk - they identify and manage risk. Planning - they apply accounting techniques to plan and budget. Communication - they determine what information management needs and explain the numbers to non-financial managers.
To work in practice CIMA members need to obtain a practicing certificate. Under its Royal Charter CIMA governs the individual and therefore certificates are issued to the individual member and never a firm. Thus there are CIMA registered members in practice but never CIMA registered firms.
Chartered Management Accountants:
Advise mangers about the financial implications of of projects.
Explain the financial consequences of business decisions.
Formulate business strategy.
Monitor spending and financial control.
Conduct internal business audits.
Explain the impact of the competitive landscape.
Bring a high level of professionalism and integrity to businesses.