Managerial accounting is a specialized field of accounting that provides financial and operational information to help managers make decisions. Managerial accounting graduates have excellent career prospects, they can earn a high salary, the job market is strong, and the degree gives you an edge in the competitive business world. So if you’re looking for a well-rounded and rewarding career, managerial accounting is a great option.
Here are four solid reasons why you should opt for an Accounting MBA (Master of Business Administration) degree:
Builds data-centric skills
The answer to why pursue a managerial accounting MBA degree lies in the skills that a graduate develops over the course of the program. Let’s have a closer look at the type of skills:
Data analysis
A managerial accounting degree helps candidates understand data, how to read it and interpret it to find insightful data analytics to forecast trends, make predictions or re-evaluate different parameters of a business (i.e., cash flows in a fiscal year)
It enables candidates to broaden their scope and present the information in easy, understandable, and innovative graphical trends. Stakeholders can further use this information for decision-making purposes which may involve procurements and purchasing of services or products.
Enhanced costing and evaluation
To understand the actual costs of productions of any manufactured goods, managerial accounting teaches candidates to automate things like monthly rent and utilities. Graduates will also be exposed to product costing factors that are supposed to be included in direct costs to learn what it takes to calculate the actual adjusted revenue and profit margins into the spreadsheets.
Goals achievement
Although at the earlier stages, the degree can aid in meaningful conversations by allowing candidates to discuss organizational feasibility and consistency of various parts of a plan – later, these conversations help graduates gain advanced skills necessary for implementing different strategies.
Managerial accounting has allowed graduates to convert multiple organizational strategies into achievable business goals. The course outcomes of the degree focus on strategies to enhance budget control and standard costing skill, which are integral parts of any organization worldwide.
Better career prospects
According to Payscale, the average salary of an accountant holding an MBA degree is more than $90,000 per year. This figure is considered to be significantly above the annual average wage for an accountant (approx $51,000) who only has a bachelor’s degree. These numbers tend to get more impressive for accountants being promoted to higher-level management positions, such as finance managers or controllers.
Moreover, the Bureau of Labour Statistics (BLS) has forecasted more than 1.5 million jobs in this sector, which has the potential to grow 5% on an annual basis for the next ten years.
Due to the competitiveness in the candidates and universities, financial stability attached to a degree has become an integral part of young individuals. And a managerial accounting degree fares well in that aspect.
Leadership opportunities
MBA degree in Managerial Accounting empowers graduates to look for better options for upper-management positions in renowned organizations. The graduates get a chance to lead a team of executives, get hands-on experience when tackling daily issues in collaboration with their teams.
High-paying positions in different accounting firms require leadership experience/training, and candidates with this master’s degree have the upper hand. Potential leadership positions for the graduates include but aren’t limited to business consultants, revenue managers, and regional financial controllers.
The corporate career ladder is also expected to take different directions because of the degree. It usually depends on the goals of the individual. However, talented management accountants can become crucial decision-makers of any company.
After getting the degree, the best way to advance is to continue engagements in different projects and decision-making tasks. Consequently, you will increase your knowledge of the company and how your role can result in its success.
More than just reading numbers
A master’s in accounting is not just about reading and crunching numbers on a spreadsheet and goes beyond that. Candidates don’t just rely on quantitative data analysis for decision-making purposes but also take a holistic approach to meet short-term and long-term goals.
It also teaches the graduates to use qualitative information, allowing them to segregate different data groups from other regions to grab better insights about different parameters. Finally, a mix of qualitative and quantitative analysis will enable organizations to look at their objectives, goals, and future predictions in a rounded way leaving no room for error.
A career in managerial accounting can also expose the candidates to particular kinds of surveys to evaluate the evolution of an industry sector or organization through different stages of studies.
Final thoughts
Managerial accounting is about taking a large chunk of previous data and gathering insights about different parameters. An MBA in accounting will help you understand how to turn those numbers into representable functions. It is not just about learning those complex functions on Microsoft Excel and sending them to the higher management. It’s about forecasting those numbers and understanding which direction an organization is most likely to move.
