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What is management accounting?

Management accounting has to do with the ways in which accounting information is available to the management staff within an organisation. This is done so that the managers of the company are able to make informed day-to-day or long-term business decisions.

Management accounting merges three different divisions into one position:

  • Accounting
  • Finance
  • Management

Managerial accountants need to be well-equipped with the necessary skills and knowledge for all three above-mentioned fields, so that they are able to successfully run a company’s finances.

A CIMA accountant (see below), for example, will have to help various companies adapt to different environments so that the company is able to increase their profits and improve their value. They will have to perform financial functions while also providing information and advice regarding the company’s future.

Management Accounting

 

Who is CIMA?

CIMA stands for the Chartered Institute of Management Accountants, which is a worldwide professional body for management accountants. CIMA offers finance qualifications that are recognised on an international scale. CIMA is widely respected and is known to be the most popular qualification in business.

Chartered Management Accountants are financially qualified business leaders.

Becoming a CIMA student would prove to be very valuable, because not only does it prepare you for the management-related side of a company, but also the broader spectrum of a business, such as accounting and finance.

Exactly what is CIMA’s depiction of management accounting?

Management accounting is the practical application of business and management skills within organisations, in both the private and public sectors. It incorporates accounting, finance and management knowledge, and ensures that leading techniques are used to effectively run companies.

Management accountants execute financial and non-financial tasks for various organisations. They carry out all the training within the company itself, thus giving them special insight into exactly how the organisations operate.

Management accountants operate within all the divisions of organisations, steering companies to success through a blend of leading strategies, and an in-depth understanding of the companies in which they operate.

While certified in accounting and finance, management accountants’ focus is on forward-looking, and pre-empting and conforming to businesses’ transforming demands.

What do managerial accountants do?

Depending on the company, managerial accountant roles could differ. Nevertheless, here is a brief and general overview of what can be expected within this position:

  • A managerial accountant is in charge of the company’s finances. Their job is to supervise the incoming and outgoing of money, and to oversee the profits and losses of the company.
  • The managerial accountant will have to answer any questions regarding the company’s profits and expenditures. It is also the duty of the managerial accountant to provide supporting documentation for this information. A managerial accountant combines financial expertise and business insight in order to help the company achieve sustainable business success. It is the duty of management accountants to understand how the various sectors of the business need to function together in order to achieve this success.

Other Accounting AND Management Courses offered at Bellview

ICB Courses

Like CIMA courses, these courses provide student with a matric equivalent certificate, meaning and NSC/SC is not necessary for entry.

ICB Business Management Courses

This course course consists of two consists and a diploma.

Office Administration

NATED Courses

These are National Diploma which means a Matric Certificate/ NSC/SC or a certificate equivalent to an NSC will be required.

  • Financial Management Diploma Course

 

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