How to Become an Accounting Manager (Be the CFO's MVP)

If you’ve ever envisioned managing the financial health of a company or pondered what it takes to become an accounting manager, you’re in the right place.

In this guide, we’ll delve into the PRECISE steps you need to take to jumpstart your career as an accounting manager. We’ll discuss:

The skills you need.
The education that can help you get there.
How to secure a job as an accounting manager.

So, whether you’re a numbers novice or a seasoned professional aiming to elevate your career, stay tuned.

We’re about to unfold the roadmap to becoming an accounting manager.

Let’s get started!

Contents show

Steps to Become an Accounting Manager

Step 1: Obtain a Bachelor’s Degree in Accounting or Finance

For those aspiring to become Accounting Managers, the first step is to obtain a bachelor’s degree in accounting or a related field such as finance.

This degree will provide you with a broad understanding of financial principles, business administration, and economics.

During your undergraduate studies, focus on courses like financial accounting, managerial accounting, business law, tax accounting, and auditing.

These subjects will give you a deep understanding of the financial aspects of running a business and help you to develop strong analytical and problem-solving skills, which are crucial for an accounting manager.

In addition to your course work, consider participating in internship programs offered through your school.

These opportunities allow you to gain practical experience in accounting and finance roles and can provide valuable networking opportunities.

These internships often lead to job offers after graduation, further setting the foundation for your career as an Accounting Manager.

After earning your bachelor’s degree, you will be prepared for entry-level positions in the accounting field.

From there, you can start gaining the experience necessary to eventually move into a management role.

Step 2: Gain Experience in Accounting Roles

After earning a degree in accounting or a related field, you need to gain practical experience by working in various accounting roles.

Start by seeking entry-level positions such as a junior accountant, financial analyst, or bookkeeper to understand the nitty-gritty of financial reporting, tax preparation, and other accounting operations.

As you become proficient in these areas, aim for roles with more responsibilities, like a senior accountant, where you will be involved in more complex tasks such as budget planning, financial forecasting, and internal audits.

You may also be expected to supervise junior staff, enabling you to develop leadership skills.

This hands-on experience in accounting is crucial for becoming an Accounting Manager, as it not only enhances your technical skills but also helps in understanding the financial complexities of a business.

It is recommended to gain a minimum of 3-5 years of experience in various accounting roles before you consider stepping into a managerial role.

Remember to continuously update your skills and keep abreast with the latest regulations and financial trends in your industry.

This will help you make informed decisions and strategies when you eventually become an Accounting Manager.

Step 3: Pursue Professional Accounting Certifications

After you’ve completed your degree, pursuing professional accounting certifications can increase your credibility and competitiveness in the job market.

Certifications like Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Chartered Global Management Accountant (CGMA) are well recognized in the industry.

The CPA is the most common certification for accountants and is often a requirement for accounting management positions.

It is awarded after you pass a comprehensive exam covering topics like Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC).

The CMA certification, on the other hand, focuses more on cost management, financial planning, and decision support, making it an excellent choice for those interested in managerial roles.

The CGMA designation is for those who want to showcase their expertise in management accounting at a global level.

These certifications not only demonstrate your expertise in the accounting field but also your commitment to the profession and ethical standards.

They can also pave the way for higher salary opportunities and advancement in the corporate world.

Keep in mind that all these certifications require continued professional education to maintain, ensuring you stay updated with the latest developments in the field.

Step 4: Develop Management and Leadership Skills

As an aspiring Accounting Manager, it is important that you develop your management and leadership skills.

This role involves overseeing the work of a team of accountants, and potentially other professionals, meaning strong leadership and management abilities are essential.

You can develop these skills by pursuing relevant courses or trainings such as project management, team management, leadership development, and strategic management.

These trainings can improve your ability to delegate tasks, make strategic decisions, and manage team dynamics effectively.

You can also gain these skills through practical experience in a senior role, such as a team lead or supervisor, where you can learn to manage a team, resolve conflicts, and guide the team towards achieving its goals.

In addition, it is crucial to improve your communication skills as an Accounting Manager will need to clearly articulate financial information to members of their team, other departments, and senior management.

You may also need to negotiate contracts and agreements, hence negotiation skills can be beneficial as well.

Lastly, you should seek to cultivate critical thinking and problem-solving skills, as these will be vital in managing financial queries, solving accounting discrepancies and making strategic financial decisions.

Remember, being a good leader is not just about having the right qualifications and technical skills but also about inspiring and motivating your team to deliver their best work.

Step 5: Acquire Knowledge in Relevant Accounting Software

As an aspiring Accounting Manager, gaining proficiency in relevant accounting software is crucial.

There are numerous software tools available that are routinely used in the accounting industry, such as QuickBooks, Microsoft Excel, SAP, Oracle Financials, and more.

These tools are designed to simplify the process of recording and analyzing financial information.

Understanding how to navigate and utilize these software tools will not only make your tasks easier and more efficient but will also make you more appealing to potential employers.

Many of these software programs offer certification programs, which can further validate your expertise in the software.

Furthermore, as technology continues to evolve, newer software tools and applications are emerging that incorporate more advanced features like automation and AI.

Keeping yourself updated with these technological advancements and learning how to use these new tools will help you stay competitive in the job market.

You can gain knowledge in these software tools through various means.

Some options include taking classes, attending workshops, or enrolling in online courses.

You can also learn through self-study or on-the-job training.

Remember that each industry may have its preferred software, so it’s a good idea to research the standard tools used in the industries you’re interested in.

Step 6: Strengthen Communication and Interpersonal Abilities

As an Accounting Manager, your role extends beyond managing numbers and financial statements.

You need to effectively communicate and interact with various departments within the organization, external auditors, and senior management.

As such, it’s critical to develop your communication and interpersonal skills.

Start by being proactive about communication, such as sending regular updates about financial reports, being open to questions, and providing clear answers.

Keep in mind that not everyone in your company may understand the financial jargon, so you’ll need to explain complex financial concepts in a way that’s easy to understand.

Interpersonal skills are equally important.

As an Accounting Manager, you’ll often work as part of a team and will need to collaborate with others to achieve the company’s financial objectives.

This requires you to be a good listener, respectful of others’ ideas, and open to feedback.

You can improve these skills through on-the-job experience, training courses, seminars, and workshops.

Engage in role-play scenarios that challenge you to handle difficult situations, such as explaining budget overruns to non-financial managers or resolving conflicts within your team.

Remember, becoming an effective Accounting Manager isn’t just about having a good grasp of financial matters, but also about being a good leader, communicator, and team player.

Step 7: Understand Tax Laws and Regulations

As an Accounting Manager, you’ll need to have an in-depth understanding of tax laws and regulations.

Tax laws change regularly, and different types of businesses have different tax obligations.

You’ll need to stay updated on these changes to ensure your company or clients are compliant and are taking advantage of any tax benefits or deductions available.

One way to stay updated is by attending seminars, webinars, and workshops about new tax laws and regulations.

Online classes and certifications can also help deepen your knowledge in this area.

You might also consider subscribing to professional publications or blogs that cover changes in tax law.

Understanding tax laws and regulations doesn’t just involve knowing the rules, but also how to apply them in different business contexts.

This means you’ll need to be able to interpret the laws and advise your company or clients on the best ways to manage their finances to minimize their tax liabilities.

This is a vital part of the Accounting Manager’s role, as inaccurate tax reporting can lead to penalties for the company.

Moreover, effective tax management can help the company save money, which can then be reinvested into the business for growth and expansion.

Step 8: Consider Pursuing a Master’s Degree in Accounting or Business Administration

If you aspire to higher leadership roles within accounting, you might want to consider pursuing a Master’s degree in Accounting or a Master of Business Administration (MBA) with a concentration in finance or accounting.

These advanced degrees can provide you with a deeper understanding of business operations and financial management strategies, which are crucial for an Accounting Manager role.

In a Master’s degree in Accounting program, you would delve into advanced topics like financial reporting, auditing, taxation, and management accounting.

On the other hand, an MBA program with a focus on finance or accounting would cover these topics and also provide a broad understanding of general business management principles.

Graduate degrees could also enhance your marketability.

Employers often view candidates with a Master’s degree as more skilled and knowledgeable, which could result in more job opportunities or higher pay.

Moreover, if you’re considering becoming a Certified Public Accountant (CPA), a Master’s degree could help fulfill the 150 semester hours of college education required by most state boards.

Remember, pursuing a Master’s degree requires a significant investment of time, effort, and money.

So weigh the potential benefits against the costs, and consider your long-term career goals before making a decision.

Step 9: Network with Accounting and Finance Professionals

Building a strong network is crucial for progression in any career, and this is especially true for aspiring Accounting Managers.

Networking with other accounting and finance professionals can offer you insights into the industry, increase your knowledge, and expose you to new job opportunities.

Start by joining professional organizations such as the American Institute of Certified Public Accountants (AICPA) or the Institute of Management Accountants (IMA).

These organizations often host events, seminars, and workshops that can help you meet other professionals in your field.

Participate actively in these events and make a point of introducing yourself to others.

Attending industry conferences is another excellent way to network.

At these events, you can learn about the latest industry trends, meet potential employers, and even find a mentor.

You can also leverage social media platforms like LinkedIn to connect with industry professionals.

Be sure to keep your profile updated and engage with posts and discussions relevant to accounting and finance.

Remember, networking is about building relationships, not just collecting contacts.

Show genuine interest in other people’s work and offer help when you can.

This can leave a lasting impression and could prove advantageous when job opportunities arise.

Step 10: Apply for Accounting Manager Positions

After gaining substantial experience and expertise in the field of accounting, you are now ready to apply for Accounting Manager positions.

Be sure to research the companies you are considering to understand their organizational culture, mission and values, as well as the specifics of the accounting manager role being offered.

Craft a tailored resume and cover letter for each position you apply for.

Highlight your relevant skills, experiences, and achievements.

Specifically mention your understanding of accounting principles, leadership abilities, problem-solving skills, and proficiency in accounting software.

Detail your responsibilities in previous roles, especially those that demonstrate your ability to manage and lead an accounting team, develop and implement accounting systems and policies, and improve financial procedures and operations.

Prepare for potential interviews by reviewing common interview questions for Accounting Manager roles.

Practice explaining complex accounting processes in simple terms as you may need to communicate with individuals who do not have a background in finance.

Also, prepare to discuss your leadership style, your process for managing a team, and your approach to problem-solving.

Networking is also key in landing a job as an Accounting Manager.

Attend industry events, join professional accounting organizations, and utilize social media platforms like LinkedIn to connect with professionals in the field.

Remember, persistence is key.

It may take time to land your ideal role as an Accounting Manager, so keep honing your skills and don’t get discouraged if you don’t get the first job you apply for.

Accounting Manager Roles and Responsibilities

Accounting Managers are responsible for maintaining the financial health of a company.

They use their strong analytical skills, understanding of accounting principles, and management abilities to oversee accounting departments, ensure accurate reporting, and support strategic financial planning.

They have the following roles and responsibilities:

Financial Accounting and Reporting

Oversee the operations of the accounting department, including the design of an organizational structure adequate for achieving the department’s goals and objectives.
Prepare and publish timely monthly financial statements.
Ensure quality control over financial transactions and financial reporting.

Budgeting and Forecasting

Coordinate the preparation of the corporate annual report.
Manage and comply with local, state, and federal government reporting requirements and tax filings.
Create and implement financial strategies by forecasting capital, facilities, and staff requirements.

Internal Controls

Develop and document business processes and accounting policies to maintain and strengthen internal controls.
Ensure that reported results comply with generally accepted accounting principles or international financial reporting standards.

Audit

Coordinate the provision of information to external auditors for the annual audit.
Act as a key contact for external auditors; manage preparation and support of all external audits.

Management

Supervise and manage accounting staff performance.
Guide other departments by researching and interpreting accounting policy; applying observations and recommendations to operational issues.

Financial Strategy

Develop financial and tax strategies for the organization.
Manage the capital request and budgeting processes.

Regulation Compliance

Ensure compliance with the law and company’s policies.
Stay updated about the latest legislative changes and industry trends.

Communication

Communicate effectively with the company’s management team and other stakeholders.
Present financial reports to board members, stakeholders, executives, and clients in formal meetings.

Continuous Learning

Maintain and improve technical skills and knowledge.
Attend conferences, workshops, and training programs to stay updated with the changes in the financial industry.

What Does an Accounting Manager Do?

Accounting Managers typically work for businesses across various industries, financial institutions, government bodies, or as independent consultants.

They play a crucial role in building, managing and maintaining the financial systems of an organization.

They are responsible for preparing financial reports, analyzing trends, creating budgets, and making recommendations to senior management.

Accounting Managers often supervise a team of accountants, guiding their work and ensuring the accuracy of their calculations and data entries.

They also oversee the preparation of financial statements and are usually the go-to person for any financial audit by internal or external bodies.

In addition to these tasks, Accounting Managers also collaborate with other departments to streamline processes, reduce costs, and improve financial performance.

They ensure that all accounting practices are in line with statutory legislation and regulations.

Accounting Managers may also be involved in strategic planning, risk management, and decision-making processes at the management level.

They have a critical role in contributing to the overall financial health and sustainability of the organization.

Essential Accounting Manager Skills

Financial Analysis: Accounting managers are required to analyze financial data and provide recommendations based on their findings. They should be able to identify trends, evaluate financial performance, and make informed predictions for the future.
Accounting Software: Familiarity with accounting software such as QuickBooks, Sage or Xero is crucial. This includes generating financial reports, managing budgets, and performing audits.
Budgeting: A key part of this role involves preparing and reviewing budgets. This requires a deep understanding of the organization’s financial position and the ability to make accurate forecasts.
Leadership: As managers, they must lead and guide a team of accountants. This requires strong leadership skills, including the ability to motivate, delegate tasks, and manage team performance.
Communication: Accounting managers must be able to communicate complex financial information clearly to non-financial colleagues and stakeholders. Excellent written and verbal communication skills are essential.
Regulatory Compliance: Understanding and complying with financial laws and regulations is key. They should be able to keep up-to-date with changes in legislation and ensure that the organization remains compliant.
Financial Reporting: They should be proficient in generating accurate financial reports, including income statements, balance sheets, and cash flow statements. These reports provide key financial insights for decision-makers.
Auditing: Auditing skills are essential for ensuring the accuracy of financial information. This includes internal auditing to identify any discrepancies or areas for improvement.
Attention to Detail: Due to the nature of the work, a high level of accuracy and attention to detail is necessary. Even small errors can have significant financial implications.
Decision-Making: Accounting managers make critical financial decisions that affect the entire organization. This requires strong decision-making skills, supported by accurate data and analysis.
Excel: Proficiency in Excel is a must. From performing complex calculations to creating financial models, Excel is a key tool for any accounting manager.
Strategic Thinking: They should be able to contribute to strategic planning by providing financial insights. This requires an understanding of how financial trends and forecasts can impact the organization’s strategic goals.
Teamwork: Working effectively within a team is crucial. Accounting managers need to collaborate with colleagues from other departments and ensure that their team works together efficiently.
Time Management: They often work with tight deadlines, making effective time management skills essential. They should be able to prioritize tasks and ensure that work is completed on time.
Problem-solving: The ability to identify and resolve financial issues is key. This includes troubleshooting any issues with accounting software, resolving discrepancies in financial data, and finding solutions to financial challenges.

Accounting Manager Career Path Progression

The Foundation: Junior Accountant

The career path of an Accounting Manager usually starts from the position of a Junior Accountant.

Here, your main responsibilities include preparing financial statements, analyzing costs, and assisting in audits.

Below are some tips to help you succeed:

Master Fundamentals: Familiarize yourself with accounting standards and regulations.
Enhance Technical Skills: Proficiency in accounting software and Excel is essential.
Attention to Detail: Accuracy in data entry and calculations is paramount in accounting.

The Ascent: Accountant

With experience and skill development, you move up to the role of Accountant.

This role includes a broader spectrum of responsibilities, such as tax preparation, budget forecasting, and financial reporting.

To thrive in this stage:

Continuing Education: Stay updated with the latest in tax laws and financial regulations.
Communication: Develop strong communication skills to effectively present financial information to stakeholders.
Time Management: Juggle multiple tasks and deadlines without sacrificing the quality of your work.

Reaching New Heights: Senior Accountant

As a Senior Accountant, you are expected to handle complex accounting activities and supervise junior staff.

You might also get involved in strategic planning and financial decision-making.

To excel in this role:

Leadership: Lead and mentor junior accountants, demonstrating best practices and promoting a positive work environment.
Strategic Thinking: Contribute to the financial planning and decision-making process of the company.
Problem Solving: Use your extensive accounting knowledge to solve complex financial issues.

Beyond the Horizon: Lead Roles and Beyond

With significant experience and expertise, you may step into leadership roles such as Accounting Supervisor, Director of Accounting, or Chief Financial Officer.

These roles entail greater responsibilities, leadership, and strategic decision-making.

Here’s what to focus on:

Strategic Leadership: Drive financial strategies and decisions that support the company’s objectives.
Team Management: Develop strong leadership skills to guide your team effectively.
Innovation: Utilize technology to improve efficiency and accuracy in accounting processes.

Pinnacle of Success: Chief Financial Officer (CFO)

At the top of the accounting career ladder, you may become a CFO.

In this role, you’re responsible for managing all financial actions of a company, including long-term financial planning and analysis, budgeting, and financial reporting.

You’ll also be a key strategic advisor to the CEO and board of directors.

Accounting Manager Salary

Entry-Level Accounting Manager

Median Salary: $55,000 – $70,000 per year
Entry-level accounting managers typically have 0-2 years of experience, often hold a bachelor’s degree in accounting or finance, and may be working towards or have recently acquired their CPA (Certified Public Accountant) certification.

Mid-Level Accounting Manager

Median Salary: $70,000 – $90,000 per year
Mid-level accounting managers have 2-5 years of experience and often oversee daily operations of the accounting department, prepare financial reports, and work with the management team on fiscal strategies.

Senior Accounting Manager

Median Salary: $90,000 – $120,000 per year
Senior accounting managers possess 5+ years of experience and play a key role in developing and maintaining financial policies and management of the financial department. They are often responsible for budgeting, tax planning, and complex financial reporting.

Director of Accounting / Chief Accounting Officer

Median Salary: $120,000 – $160,000+ per year
These roles require significant experience and expertise in managing a company’s accounting operations, setting internal controls, and ensuring compliance with accounting standards and regulations.

Chief Financial Officer (CFO)

Median Salary: $180,000 – $300,000+ per year
These high-level positions require extensive experience and deep understanding of financial management. CFOs are often responsible for strategic financial planning, managing company finances, and working with the CEO on company-wide strategy.

Accounting Manager Work Environment

Accounting Managers typically work in an office environment, but they can also find employment in different industries such as finance, healthcare, manufacturing, or government organizations.

Most Accounting Managers work full time, and some may need to work additional hours to meet deadlines, especially during tax season or at the end of the fiscal year.

Their role often involves managing a team of accountants, overseeing financial procedures, preparing reports, and interacting with senior management.

This role demands precision, attention to detail, and high-level analytical skills.

With significant experience, Accounting Managers may advance to higher positions such as Director of Finance or Chief Financial Officer in their companies.

The work environment is generally professional and requires adherence to strict ethical standards.

FAQs About Becoming an Accounting Manager

What qualifications do I need to become an Accounting Manager?

To become an Accounting Manager, you typically need a bachelor’s degree in accounting or a related field.

Some employers may prefer candidates with a Master’s degree in Business Administration (MBA) or Accounting.

Moreover, obtaining certifications such as Certified Public Accountant (CPA) or Certified Management Accountant (CMA) can enhance your prospects.

Key skills include financial management, data analysis, proficiency in accounting software, attention to detail, and strong leadership abilities.

How long does it take to become an Accounting Manager?

The time to become an Accounting Manager can vary depending on your educational and career path.

After obtaining a bachelor’s degree, which usually takes about four years, you may need to gain about 5-10 years of experience in accounting or finance roles to be considered for a managerial position.

Obtaining additional certifications or a master’s degree can also add to this timeframe.

Can I become an Accounting Manager without an accounting degree?

While it’s more common for Accounting Managers to hold a degree in accounting or a related field, it’s not always required.

Some individuals may progress to this role through extensive experience in financial roles.

However, without a degree in accounting, you may need to demonstrate your competency through professional certifications like the CPA or CMA.

Is being an Accounting Manager stressful?

The role of an Accounting Manager can be stressful at times due to factors like tight deadlines, complex financial analysis, and the responsibility of overseeing an accounting team.

However, the level of stress can vary depending on the company’s size, the industry, and the individual’s time management and coping strategies.

Despite the challenges, many Accounting Managers find the role rewarding due to its strategic influence in the company’s financial decision-making.

What are the career prospects for Accounting Managers?

The career prospects for Accounting Managers are generally robust.

With experience, Accounting Managers may advance to roles such as Finance Director, Chief Financial Officer, or even CEO.

Additionally, the skills acquired in this role are transferable and highly valued in various industries, leading to diverse career opportunities.

Conclusion

And there you have it.

Embarking on a journey to become an accounting manager is no small task, but it’s undeniably fulfilling.

Equipped with the right expertise, education, and tenacity, you’re well on your way to making a substantial contribution to the business world.

Keep in mind, the road may be tough, but the possibilities are boundless. Your financial strategies could lead to the next big business breakthrough, revolutionizing the way we live, work, and conduct business.

So, take that first leap. Immerse yourself in continuous learning. Connect with industry professionals. And most importantly, never stop crunching numbers.

Because the business world is eager to see what you can deliver.

And if you’re seeking tailored guidance on beginning or progressing your career in accounting management, give our AI Career Path Advisor a try.

This complimentary tool is designed to provide personalized advice and resources to help you efficiently navigate your career path.

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