Accounting management or management accounting is the process in which financial and non-financial information and resources are provided to the managers in an organisation to facilitate decision making. In this process, invoices, financial statements and other relevant information are shared with the company’s management team which then looks around and into the business, takes into account its needs and then devises a plan, formulates strategies and implements them for the organisation to reach its goal.
The objective of accounting management is to use processed statistical data to determine the correct plan of action for the development of the business. Some of the tools of accounting management are financial accounting, business analysis, costing, economics, etc. Accounting management is quite an old course of study and is the ideal stepping stone for those seeking a career in the corporate world. It is an integral part of any organisation’s functions and hence, people pursuing management accounting in higher studies never face any dearth of jobs after completion of the course.
Diploma in accounting management: It is a 1-year course. It requires passing of class 10+2 or an equivalent exam in any discipline from a registered board.
Post Graduation in Management Accounting: The PGPMA programme is also designed and approved by the Chartered Institute of Management Accountants (CIMA). This course is by far the best way to improve one’s chances of making it big in the field of accounting and finance.
PG certificate course: This programme is designed to enable students to gain knowledge in certain areas of accounting ultimately equipping them with important skills to fit into an office environment.
Masters of Business Administration: MBA in accounting management offers advanced knowledge in various business practises, tax laws, and auditing, which will teach about business valuations, organisational efficiency and management of innovations.
For post-graduation (PG) certificate in accounting management, the duration of the programme is 12 months with the facility of registration period validating for one and a half academic years i.e. 18 months. The MBA in accounting management course has a duration of 24 months with a semester-wise examination system. Diploma in accounting management is a 12-month diploma course while the PGDM programme is of a minimum period of 30 months extending till 36 months. If a person wants to clear it, he/she can do it in a year by clearing 5 exams.
Diploma in accounting management requires a class 10+2 certificate or an equivalent in any discipline from a recognised board. This is an undergraduate programme and admission to the diploma course is completely based on the class 10+2 examination merits. For a post-graduate certificate course in finance (management accounting), one needs to have a bachelor degree or be a graduate in any discipline from a recognised government-registered university. International or SAARC graduates from a recognised institution are also eligible for this course. Students who have already completed the final year examinations and are waiting for their results are eligible and can apply for this course. Every college has its own specific eligibility criteria which might differ from the other. As far as the MBA in accounting management is concerned, which is a PG degree, students are specifically selected via entrance examination having 50% marks in graduation in commerce stream. Following the examination, an arrangement is made for group discussion and personal interview.
Diploma in accounting management requires an accredited class 10+2 certificate or an equivalent qualification in any discipline from a government registered and recognised board. Admission to the diploma course is completely based on the class 12 examination result.
The diploma accounting management course looks for students from commerce stream who have the basic knowledge of accounting. It does not require any entrance exam but is strictly based upon class 10+2 examination merit. For pursuing MBA in accounting management one has to crack entrance tests followed by group discussion and personal interview. Entrance tests like CAT, XAT, MAT, NMAT, CMAT etc are held to admit a student. The admission process for PG certificate or diploma courses in accounting management is either merit-based or entrance exam based depending on the colleges. Common entrance exams like CAT, MAT, CEED and GMAT are held to select candidates in reputed institutes followed by personal interview for course admission.
Diploma in accounting management has a course fee between Rs.1600 and Rs.5000. While Vardhaman Mahaveer Open University in Kota, Rajasthan charges Rs.1600 the fee structure is quite high at Vedantsri Welfare Network of Institutions in Varanasi, Uttar Pradesh. The MBA in accounting management has a course fee ranging from Rs 4 to Rs 10 lakhs. Top institutions like WLC College, Chennai charges Rs.7.5 lakhs and Institution of Business Studies and Research in Navi Mumbai charges around Rs.4.5 lakhs for the course. PG course has an average fee ranging from Rs.10, 000 to Rs.6 lakhs. The Indian Institute of Finance in Noida charges Rs.3, 40,000 for the course while IFIM Business School in Bangalore charges around Rs.5, 50,000.
After the completion of a UG programme such as diploma in accounting management, one can sit for various competitive examinations in India for jobs in the government sector, banks, railways, core sector companies, hospitals, insurance sectors and so on. The scope is wider for those doing an MBA with specialisation in finance and accounting management. They get lucrative jobs in the public as well as the private sector. They may either have to appear for competitive exams or get a job through campus directly.
Studying accounting management course abroad helps to fetch jobs in countries like the USA, Australia, Canada and Germany. MBAs in accounting management, as already mentioned, will have a good career prospect with better job opportunities in multinational companies. Job profiles like accounting firm partner or audit manager or even equity analyst are highly lucrative and can provide a student with a bright future. PG certificates in management accounting followed by passing a banking entrance exam can lead to jobs in top banks and financial institutes in India. Overseas, accounting management graduates and postgraduates may work in investment banks, high street banks, and management consultancies. Later in their career, after gaining sufficient experience, they can start their own company and establish themselves as an entrepreneur.
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In MBA semester 1, the following subjects are taught in most colleges and institutes offering accounting management and finance as a specialisation:
Organisational behaviour and
Principles and practices of management
Basics of marketing
Statistics and quantitative
Semester two covers:
Human resource management
Manufacturing and operations management
Management information system
Material and logistics management
Business environmental management
Semester three has the following subjects in the syllabus
Business policy and strategic management
Management control systems and certain specialisations
The fourth and final semester syllabus covers:
International business management and other specialisation courses
The PG Diploma or certificate course has two semesters. The first semester includes
Principles and practices of management
Marketing of banking services
Banking regulations and laws
Project and infrastructure financing
The second or the final semester consists of chapters from the first semester in advance level along with macroeconomics, risk management and micro framing.
Diploma in accounting management offers jobs in fields such as colleges or universities, government organisations, banking and insurance sector, MNC, etc. The degree holder can have job profiles like a lecturer, accounting manager, accountant, financial manager. An MBA degree holder in accounting management can be recruited by top companies like Genpact, Tata Consultancy Services Limited, Wipro Technologies Ltd., Bharat Sanchar Nigam Limited (BSNL), etc. in the posts of accounting educators, chief compliance officers, financial analysts, financial managers, fraud investigators, internal auditors, etc. Postgraduates in accounting management have favourable career prospects as a financial analyst, bank manager, financial manager, portfolio manager etc.
Following are some of the most in-demand job profiles in the field of accounting management. Almost all big offices have these posts. Fresh accounting management graduates and postgraduates can expect to start with something as entry-level as an accountant or financial manager (depending on the institute of passing) and then climb up the corporate leader to take up senior job roles like that of financial analysts, compliance officers, and direct and indirect tax experts, etc.
An idea of the duties and responsibilities of each of these accounting management job profiles is given below:
Accounting manager: Accounting managers mainly look into the accounting part of the sales generated by a company. It is their job to maintain the books of account and create financial reports at the end of a quarter or financial year.
Chief compliance officers: These officers are responsible for managing and supervising the compliance issues of the company they work in. They ensure that the company and the various regulatory policies are in compliance with each other.
Financial analysts: They collect and analyse data to look for scopes of implementing new business decisions. They also evaluate the various decisions already taken and offer recommendations for further betterment.
Accountant: The accountants are responsible for a lot of financial functions of an organisation. These include analysis of business performance, accuracy, collection of financial data, recording the data and organising the financial operations of the company. Sometimes they have to deal with the customers, vendors and other financial institutions.
Finance managers: They take care of the financial health of the company. They have to prepare the financial reports and chalk out strategies for long-term goals that would benefit the company financially. They have to monitor the investment activities too and help the management make sound decisions financially.
Fraud investigators: If an allegation of fraud comes up, the fraud investigators have to look into it. They review and analyse the evidence available, gather data to prepare a professional report and recommend the next measures to take. Often they coordinate field assignments too.
Internal auditors: They assess the risk management policies of an organisation and ensure that it is foolproof. They also supervise the internal processes of controlling the organisation and the governance procedures of the same. They are a part of the audit committee who report to the board of directors.
The top recruiters, especially for MBA degree holders and non-MBA as well, in the field of finance and accounting management are as follows:
Tata Consultancy Services Limited
Wipro Technologies Ltd.
Bharat Sanchar Nigam Limited (BSNL)
Colleges or universities
Banking and insurance sector
Accounting management is a promising career for all students with a commerce background. Even students from other streams take up finance and accounting management as specialisation in their MBA sheerly out of interest in the subject. In-depth knowledge in finance and accounting and decent marks in the final exam of graduation or post graduation can certainly get them good jobs in the corporate sector without having to wait too long.
1. Analytical skill: Having analytical skill allows professionals to suggest and implement viable solutions after analysing a problem thoroughly.
2. Communication Skill: To ensure quick and accurate delivery and understanding of information, written and verbal communication skills are utterly important. This way the personal and professional goals are met smoothly as the flow of information along the hierarchy is well maintained.
3. In-depth knowledge: Professionals need good knowledge about policy planning, accounting theory, corporate income taxation, tax ethics, estate planning, accounting research, business communications, accounting and auditing information systems, finance, supply chain management and information technology.
4. Financial skills: These skills help the individual develop the ability in financial areas and increase the knowledge in financial planning and working, leasing, capital management, and also learn work for corporate organisations.
5. Decision-making ability: One should have reasonably good foresight and risk-taking ability to make timely decisions for his organisation.
The course curriculum for UG course of diploma in accounting management is as follows:
Accounting Information Systems
Management and Forensic accounting
The PG diploma or certificate course has two semesters. The subjects and topics taught in these two semesters are given in detail in the following section.
An MBA curriculum offering finance and accounting management as a specialisation subject invariably has an -
And a project followed by dissertation and final presentation
Case studies are also an integral part of an MBA curriculum.
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