Once you decide to become an accountant, you need to start determining the area in which you would like to specialize. Management accountants are responsible for creating and maintaining a company’s accounting programs and procedures from the ground up. They also scour productivity, sales, and operations reports to find if anything is causing a loss of revenue and then plan ways to improve efficiency, operations, and sales. Management accountants have a strong background in both accounting and management.

Getting Schooled in Management Accounting

In order to become a management accountant, you will need to earn a degree from an accredited four-year college or university program. The programs vary by state, but the typical four-year curriculum looks much like any other accounting program, with a few variations. For example, you might need to take more courses in business and management than with a general accounting degree. In addition, you will most likely be required to pass two courses geared towards philosophy, three courses in social sciences, two courses in math, three courses in history, two art courses, two writing courses, and one foreign language.

Gaining Experience

Experience is invaluable in the world of management accounting. Try to arrange to work part-time in an accounting firm while you complete your college education. Many employers give preferential treatment to applicants that have some accounting experience under their belt. A large percentage of colleges offer work-study programs for this reason. Check with the college to which you are applying.

Upon completion of an accredited accounting program and completion of the CPA (Certified Public Accountant) exam, anyone interested in management accounting should look into IMA’s (Institute of Management Accountants) Certified Management Accounting (CMA) program or Certified Financial Accounting (CFA) programs. These programs do cost a little, but those who have completed one of the programs find that they earn up to 25% more than those not holding these specified credentials.

Earning the Big Bucks

The average salary for a management accountant is $38,000 to $68,000. There are three levels: Entry-level, intermediate, and senior. Obviously, entry-level management accountants earn approximately $38,000 per year, while the senior management accountants earn around $68,000. An intermediate management accountant’s salary is in the $53,000 range. Those management accountants holding a CMA or CFA can earn between $47,500 and $85,000 per year. Not too shabby! The work required to earn those salaries is challenging, however. It requires strong math and analytical skills.

To become approved into IMA’s program, you must provide them with a transcript of your college career. This is only the beginning of their list of requirements:

  • You must pass the GMAT (Graduate Management Admissions Test) and be in the 50th percentile or higher.
  • The transcript must be in English if you attended a foreign college.
  • All transcripts must contain the college or university’s official seal.
  • You must have passed the CPA exam or equivalent if you are from another country. A copy of that score must also be submitted.
  • You must have worked as an entry-level management or financial accountant for two consecutive years. The work must have been completed within the past seven years. Jobs in which you were temporary or part-time only will not qualify. The work must have been in financial or management accounting full-time working only on these aspects of accounting.
  • You must be a current member of IMA. Membership fees are $185 per year, plus an additional $15 if this is your first enrollment in their association.
  • You must pay and additional $130 for each program that you want to attempt, CMA and/or CFA. Residents of the United States, Mexico, and Canada can receive 50% of that money back if they enroll in additional/continuing college courses within a year of applying for the CMA or CFA.
  • Acknowledge that you are aware that it is your responsibility to continue your education. Many states require CPA’s, CMA’s, and CFA’s to complete 40 credit hours per year in continuing education for his or her accounting degree. CPA licenses must be renewed every two years.

CMA or CFA certification requires a yearly renewal fee. If you pay late, you cannot use your credentials on any advertising, business cards, etc. until you have paid your fees. If caught breaking this condition, you could lose your credentials completely.

The CMA and CFA program consists of study guides, an outline of the exam, all registration papers that you must fill out, discussion groups, additional reading materials, and a sample exam. Material covered on the CMA exam is covered in four parts. The information includes: Budget Preparation, Business Economics, Corporate Finance, Cost Management, Decision Making, Financial Analysis, Financial Reporting, Global Business, Information Management, Internal Controls, Investment Analysis, Performance Measures, Quantitative Means, Strategic Marketing, and Strategic Planning.

CMA and CFA programs are not easy. They require a lot of study time and then the rather lengthy exam. Should this dissuade you? No, think of it as a challenge! Persevere and you can give yourself a quick raise by becoming a Certified Management Accountant or Certified Finance Accountant.

View a list of >online accounting schools where you can begin studying to become a CPA, CMA or CFA.