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Description

This is an ideal career for an analytical thinker. A cost accountant works for a large corporation that may offer any range of products or services to the businesses, individuals and governments.  You would focus on the cost management side or the financial management side of the business, with the highest position being Chief Financial Officer or Finance Director.

Career Advice - Cost Accountant Career

You have a sound understanding of financial documents and business accounts, most of which are reviewed internally and ultimately are released into the public domain either to the Taxation Department or as statutory accounts for a publicly listed organisation.  These accounts give an overview of an organisation’s financial health, and forecast future financial positions by utilising profit statements, balance sheets, cashflow statements and sensitivity analysis, all of are essential for reviewing the past and planning for the future. 

In large corporations there are accountants who work primarily on the cost side of the business, whilst others work primarily on the financial management of the organisation.

On the cost side a graduate starts as an analyst then moves to a cost accountant.  Cost accountants often work in a manufacturing environment across a variety of industry sectors from automotive, consumer durables, fast moving consumer goods and industrial products just to name a few.  You deal with budgets, develop and direct systems to record costs and gather data to work out each unit cost.  You will analyse changes that affect production costs such as wage rates, raw materials, manufacturing methods and factory overheads.  Senior management relies on your reports to make decisions on production volumes, sale prices, product additions or deletions, and allocation of manufacturing or distribution resources.

On the financial side, a graduate starts as an assistant accountant and moves to a management accountant.  A management accountant usually works in a similar type of company but they report on financial results as opposed to the costing of specific products and services.  Management accountants prepare reports for management, summarise the business's financial position in areas of income, expenses, capital usage and cash flows. They also assist with the preparation of strategic plans, budgets and financial forecasts.  You may also manage the company’s banking relationship, negotiate capital funding requirements and develop strategies to invest surpluses.  You are usually the author of the company’s financial management policies, operating procedures and internal controls.

Either stream of accountant can end up being the corporation Financial Controller or Finance Manager.  You are likely to find other opportunities such as Finance Director or General Manager Finance (who may also manage other functions such as Human Resources), IT and Legal, assume the role of company secretary, liaise with market analysts and take responsibility for mergers and acquisitions.

What you do every day

What you do each day really depends on what type of accountant you are.  Management accountants are usually preparing management reports, capital expenditure documents, changing or reviewing policy or checking capital usage and cashflow.  Business hours are Monday to Friday, 8.00am to 5.30pm, but these increase as the end of the financial year approaches.  Cost accountants can be found on a production line or at their desk formulating a cost structure, reviewing operating efficiency and other production related issues.

Most organisations have fully computerised records, so access to a computer is essential for accountancy work.  There are a number of ready-made accountancy software packages which can handle the spectrum of accounting requirements, but normally corporations use complex custom built systems.

Personality that best fits this occupation

A career in accounting requires an aptitude for numbers and maths.  You'll also need excellent computer and communication skills to do well in the field.  Naturally you’re analytical, with a good eye for detail and excellent organisational skills.  Historically, accounting has been incorrectly labelled a profession for “introverted nerds.”  This is not so today.  If you’re extroverted, possess innovative thinking, take strategic views on various topics and can bridge the abstract to find a commercial solution, then you’re a nice fit with accountancy.  The “Big Four” companies look for business acumen and personal stature when recruiting graduates.  As you are dealing with confidential information and people’s personal affairs, you also need to be discreet, professional and ethical.

Best thing about this career

The huge variety of career paths makes accounting an exciting career choice.  You’re never bored and you work with smart, stimulating people most of the time.  There is job satisfaction working with new clients and managing existing clients.  It’s also a career which earns both respect and good money.

Worst thing about this career

At times the numbers and analysis can get tedious.  The pressure of unrealistic deadlines may gradually burn you out, and task-focussed management is de-motivating.  Talking about money and accounting when you’re not at work is also a pain.