For budding accountants, choosing between financial or management accounting can be a difficult decision. The right career path for you comes down to your personality, and which aspects of accounting you are most eager to become involved in.
We’ve put together a quick quiz to help you decide whether you might enjoy a financial or management accounting role the most.
Financial accounting is probably the first thing that comes to mind when most people picture an accountant. Financial accountants often work for accounting firms, reporting on financial information for a range of clients.
Their reports are usually more focused on a period in the past than making predictions or giving advice for the future. They work within set regulations, and may provide financial advice related to meeting these regulations.
The work of financial accountants is often aimed at external stakeholders like investors.
Management accountants work much more with the day-to-day operations of a company. Their job involves liaising with people across the business, including senior management.
Their role covers more than reporting on financial information, and advising on keeping in line with regulations. Management accountants make financial recommendations for reducing costs and increasing revenue. They are often required to make bold predictions, and are an integral part of generating a company’s financial strategy.
Generally, those with a pure passion for number crunching are drawn to financial accounting. Those who love making a powerful impact and getting involved in decisions can find management accounting ideal. To see which might suit you the best, take the quiz!
If you have any questions about becoming qualified for either financial or management accounting, one of our advisors would be delighted to hear from you. Get in touch on 01332 613688, or send us a message.