Accounting is a vast subject to decipher. There are various types of accounting and financial management processes that are running the world right now. Over the years, an accountant’s job has upgraded from merely book-keeping and data entry to running the company’s finances. Today, accountants are required to not just manage transactions but also help a business understand the gaps and opportunities that it can use. Numbers can give you insights into the current state of your business. This brings the role of a Certified Management Accountant to light.
Who is a Certified Management Accountant?
Certified Management Accountant is a financial management vertical. A Certified Management Accountant is someone who has certified expertise in financial accounting and strategy. These individuals are trained in financial accounting proficiency with the added bonus of management skills. The areas of their work include sales, bank, and cash, accounts receivable, inventory, accounts payable, outstanding debts, etc. Management Accounts reports include variance analysis and other statistics that help in understanding performance.
This makes their role highly strategic. Hence, they are responsible for preparing management reports that give useful insights to corporate decision-makers which in turn improves the profitability of the company.
How Do Certified Management Accountants Aid In Decision-Making?
Data plays a key role
Certified Management Accountants curate data and analyse them to perfection. Based on this data, key insights are gathered. They can help you understand which products are selling well and which ones need your attention so that you can build a marketing strategy based on facts and insights which arise from data.
Businesses must have clients from all sectors. The Covid-19 pandemic has taught us not to be dependent on a single sector for our business. If your business has invested most of their resources into one sector then CMAs can decipher how much of your resources are being spent on it. It will give you data on your dependency on certain sectors and where else you need to focus more. This will ensure that all your eggs are not in one basket and if one sector goes down, your business will be stable as it is not fully dependent on a particular sector.
Margins and money
If you deal with a multitude of products in different ranges, then it’d be hard for you to find the well-performing ones. You will probably find yourself swimming in data and numbers. Certified Management Accountants do that hard work for you and they give you helpful insights on which products are reaping you high sales.
Keep your marketing and ad spends in check
The role of a CMA is to keep an eye on your investments. If you have spent money on an ad campaign, then they will analyse the ROI that you have received through that campaign. They help you understand if the ad and marketing spends are worth it, so you can plan your budgets, campaigns and strategies accordingly.
Certified Management Accountants have proficiency in budgeting, forecasting, performance management and cost measurement. Hence, they can calculate any cost required for any project and help you understand the scope of investment for your business. Additionally, they can help you forecast if the said investment will increase profits or not.
The Roles Are Evolving
The world of business is changing and it’s changing fast. Thanks to the disruption of newer technologies, the role of accounts have become both important and strategic. The data that was before hard to cumulate and manage can be done so in real-time today. This has raised the expectations of Certified Management Accountants. Nonetheless, a company needs their expertise and prowess to keep their operations running smoothly.
If you are a start-up or a business that’s looking to get this skill outsourced then you can get in touch with us. At Business Guru, our motto is to help businesses focus on their Sales by outsourcing their Management Accounting to us. We have a team of in-house experts which include CAs and MBAs who can help your Business with all your Management accounting needs which will, in turn, help your business grow!
Get in touch with us here for any queries.