A Management Accountant is responsible for analyzing financial data to assess a business's financial status and competitiveness. They compile internal reports for management and make recommendations on utilizing resources to improve profitability. Management Accountants operate in both manufacturing/services sectors, analyzing costs and productivity to advise management on opportunities.

1. 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

2. 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

3. 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

4. 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

5. 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

6. Management Accountant –
Manufacturing / Services
 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

7. Management Accountant –
Manufacturing / Services
 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

8. Management Accountant –
Manufacturing / Services
 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

9. Management Accountant –
Manufacturing / Services
 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

10. Management Accountant –
Manufacturing / Services
 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

11. 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

12. 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

13. 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

14. 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

15. Management Accountant -
Questions and Answers
 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 / N
Debtors Y / N
HR Y / N
Internal Audit Y / N
Payroll Y / N
Distribution 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

16. Management Accountant -
Questions and Answers
 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

17. Management Accountant -
Questions and Answers
 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

18. 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