What is a Chartered Management Accountant?
A Chartered Management Accountant is a member of CIMA, the Chartered Institute of Management Accountants, and their training and experience has all been done in actual businesses rather than in an accountancy practice where you will mainly find Chartered and Certified Accountants.
This industry experience gives Management Accountants the day-to-day knowledge of working within a business and an understanding of what happens from the inside.
What is Management Accounting?
CIMA definition is “Management Accounting combines accounting, finance & management with the leading edge techniques needed to drive successful businesses.”
So you can see, this is more than just producing a set of accounts at the end of the year.
So what do CMAs do?
- ADVISE about the financial implications of projects. For example, what is the cost of putting in a new software system, not just in terms of the actual system, but all the related costs too.
- EXPLAIN the financial consequences of business decisions. For example, if you put your prices up 10%, what effect will this have on your bottom line.
- DEVISE your business strategy with you. For example where is the company going and how is it going to get there?
- MONITOR spending & financial control. For example through the use of management accounts and budgets
In order to do these things Management Accountants need a certain skillset and this consists of:
- ANALYSIS – they analyse information and use it to make business decisions
- RISK – they identify and manage risk
- PLANNING – they apply accounting techniques to plan & budget
- COMMUNICATION – they determine what information is needed and explain the numbers to non-financial people.
A Chartered Management Accountant can use all of these actions and skills to help any business, regardless of whether it is a one-man band or a big plc.
So do you need a CMA?
If you run a business and you want to improve your bottom line then YES you need a CMA. CMAs will help guide you and your business, and help you make those tough business decisions that need making.
Here at Westwood Accountancy we have all the skills to help you with all these business decisions. Sharron is an experienced Chartered Management Accountant and she will help you and your business make the right financial decisions and improve your bottom line. She speaks plain English and will work with you to make your business perform to its maximum.
Give Sharron a call on 01207 509871 or drop her a line on firstname.lastname@example.org