Management Accountant vs Chartered Accountant
Both management accountants and chartered accountants belong to the same profession, but their job scopes differ. While most people are familiar with chartered accountants as qualified professionals in the field of business and finance, many are not aware of management accountants or the differences between the two roles.
Management Accountant
A management accountant is an individual within a company or corporation who is well-versed in accounting rules and uses this knowledge to perform their managerial duties. They work within the organization and are responsible for computing and preparing financial statements for the exclusive use of the company’s top management. Management accountants use their expertise to make better decisions for the management and control of the organization. Their responsibilities also include risk management, performance management, and strategic management.
In today’s business world, management accountants have become essential in large companies as they combine the skills of an accountant, finance expert, and management expert to drive companies forward. Some of the important roles management accountants perform include:
• Advising managers on the financial implications of projects
• Clarifying the financial consequences of business decisions
• Conducting internal audits
• Providing detailed analysis of competitors’ financial actions
Chartered Accountant
A chartered accountant is typically an external professional who provides the most reliable information about a company’s financial records. In addition to preparing financial statements, they often provide professional advice to their clients on increasing profits and reducing tax burdens. Chartered accountants can work in various settings, such as private firms, public sector firms, and nonprofit organizations. Their primary goal is to offer their expertise and advice on financial matters to their client companies.
Key Takeaways
- A management accountant’s scope within an organization is broader than that of a chartered accountant, as they use their financial expertise for the benefit of top management only, while chartered accountants look after financial statements for taxation purposes and analysis by shareholders.
- Management accountants work within an organization, while chartered accountants typically come from outside and manage accounts for multiple companies.
- Management accountants monitor the financial books of a company and warn about the financial implications of business decisions and projects, whereas chartered accountants do not interfere in a company’s internal activities.
