Difference Between Chartered Accountant and Management Accountant
Chartered Accountant vs Management Accountant
In the field of finance and business, two jobs emerge as the most popular job titles of them all. These job titles are management accountant and chartered accountant. These professions are both for finance and business, but the scope and limitations of their duties differ. Chartered accountant is a term that has been around for a long time, and people will easily notice that this job title is for business and finance. However, when the term management accountant emerged, confusion stirred. People tend to use them interchangeably and others find it hard to distinguish one from the other. By describing and differentiating each, these confusions will be cleared.
Management accountant, as the term implies, manages the accounting of finance in a company. This person is also very knowledgeable about the rules of accounting in a certain company or corporation. The responsibilities of this person range from computing to making financial statements that will be passed to the top administrators of a certain company or corporation. With the expertise and skill that this person possesses, he will be able to make wise decisions for the company to prosper and gain maximum profit. Other roles that a management accountant shall perform are performance management, strategic management and risk management.
A management accountant has a big role in big companies, because he or she has the combined knowledge of an accountant and a manager. This person is capable of accounting the money of a company properly, while advancing the company towards a better production for a bigger profit. The major responsibilities of a management accountant are advising managers on how to handle financial projects, predict the consequences on any business and financial decisions made by a company, make internal audits, and make reports on the competitors financial moves.
A chartered accountant, on the other hand, is someone who also gives financial reports on a company. However, this person is from the outside. The chartered accountant also makes a financial statement for a certain company. This person will help clients make right decisions when doing business with certain companies or corporations. They will also give advice to these clients on how they will profit and have less tax burdens in dealing with the certain company. A chartered accountant has no limitations as to what environment he or she will work in. This person can work in private firms, non-profit organizations, and public sector firms. The main client is the company who asks of his or her help in making financial statements and making the right financial decisions to gain maximum profit for the company. The chartered accountant is like a freelance accountant who can work wherever he or she wants to work.
A management accountant uses his skills and knowledge for the benefit of the top management of the company only, while the chartered accountant has the entire company as his or her client.
A management accountant is working inside a company or corporation, while the chartered accountant work from the outside for many companies like a freelancer.
A management accountant has a say in the internal business of a company, such as making decisions for a company, while a chartered accountant does not interfere with inside issues of a company.
A chartered accountant only makes truthful financial statements, while the management accountant can also make financial statements and at the same time manage the company towards a better company profit.
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