Management Accountant vs Chartered Accountant
Management Accountant and Chartered Accountant are both from the same profession but the scope of their job differs. The word chartered accountant has become very commonplace and majority of the people are aware of the fact that he is a person qualified to work in the fields of business and finance. But when the term management accountant is put forward, most cannot differentiate between the two and some have even not heard about a management accountant. This article intends to make clear the concept of the two types of accountants as well as to differentiate between the role and duties of the two types.
Management Accountant
Management Accountant is a person in any company or corporation who is well versed with the rules of accounting and uses this knowledge to good effect in performing his duties as a manager. He performs his duties within the organization and is required to do all the computing and preparing financial statements of the company for exclusive use of top management of the company. He makes use of his expertise to arrive at better decisions for management and control of the organization. In addition to the role of an accountant, he is also responsible for risk management, performance management and strategic management.
In modern times, a management accountant has become crucial in big companies as he combines the skills of an accountant with that of a finance expert and management expert to drive forward a company. A management accountant performs many roles out of which some important ones are as follows.
• Advises managers about financial implications of any project
• Elucidates financial consequences of any business decision
• Performs internal audits
• Provides detailed analysis of competitors’ financial steps
Chartered Accountant
He is a person who is mostly from outside a corporation and is required to give the most trustworthy information about financial records of the company. Normally, in addition to preparing financial statements of any company, they are also required to provide professional advice to their clients so as to increase the profit and lessen the tax burden. A chartered accountant can work in different settings such as private firms, public sector firms, and also for non profit organizations. He is a professional who aims to provide his expertise and advice on financial matters to the company that is his client.
Difference between Management Accountant and Chartered Accountant
While both management accountant and chartered accountant perform similar jobs, the scope of a management accountant in any organization is wider than that of a chartered accountant. There are a lot of differences between a management accountant and a chartered accountant which are enumerated below.
• A management accountant is as much a financial expert as a chartered accountant but he makes use of his expertise for the benefit of top management only, whereas a chartered accountant is a professional who looks after financial statements of a company for the purpose of taxation and for analysis by shareholders.
• A management accountant works within an organization while a chartered accountant is always from outside and looks after accounts of many companies.
• A management accountant keeps an eye on the financial books of the company and forewarns the company about the financial implications of any business decision or any project while a chartered accountant does not interfere in internal activities of the company.
• The expertise of a chartered accountant is limited to providing truthful information and preparing accounts in such a way to maximize the profits of the company while a management accountant is involved at every step of business in a company.