What is an accounting manager?

Most people may have a general idea about what accounting managers do but aren’t quite sure what the role encompasses? Accounting is a cornerstone of any business or organization that handles financial transactions, so this role can be pivotal at many companies. Let’s dive deeper into what this position involves.

Accounting managers are the linchpins of many accounting operations. They supervise, manage and sometimes mentor a staff of accounting professionals. They typically head up an accounting department or a team of varied accountants and auditors who are in the earlier stages of their careers. They may also be the go-to link between an organization’s daily financial activities and its other departments.

With an accounting degree and a few years of relevant experience, a seasoned accountant can aspire to reach this middle-management leadership role, which relies on accuracy and cross-functionality. An accounting manager position can be found in several sectors, including corporate environments, nonprofits, government agencies, tax firms and forensic companies that investigate financial misconduct.

The Institute of Management Accountants emphasizes how those who manage accounting teams “know everything that comes in and goes out in a company, right down to the last penny. They provide guidance to the C-suite on an organization’s financial operations.” For these and other reasons, they are the company experts in accounting matters, relaying info and insight to other department heads.

It’s important to differentiate this position from those of entry-level accountants or experienced staff accountants. This managerial role focuses on overseeing an accounting department and monitoring compliance rather than performing day-to-day accounting tasks.

In this position, a manager's direct reports will handle the books, but the manager may be responsible for training junior team members on certain processes, procedures and standards of operation — or they may need to implement an apprenticeship program within the department.

The term “management accountants” or “managerial accountants” shows there’s a difference there as well. Individuals in those roles aren’t exactly managers. Their work focuses on internal financial issues, and they provide key financial information to help their organizations make decisions.

It’s also important not to confuse this role with that of financial managers, who focus on an organization’s long-term financial goals, including financial strategy, asset investments and monthly forecasts.

Essentially, accounting managers are in charge of an organization’s accounting department. That means planning and administering the work within their accounting unit.

They may be responsible for the following:

• Managing budgets, financial records and reports
• Reviewing analyses of financial records and transactions
• Managing accounting team or staff
• Meeting with other department heads to strategize

It’s helpful if those in this position help ensure their department is always firing on all cylinders — helping to raise employee productivity, efficiency and morale.

Depending on the sector, these managers may also need to direct other departmental functions; manage financial reporting and compliance; apply internal controls; and/or refresh and execute accounting policies and procedures.

To become an accounting manager, job candidates typically need a college degree. Some may wish to pursue a general business degree. However, others may opt for an accounting-specific major if their school offers it.

Those who choose to pursue a bachelor’s degree in accounting may take such courses as:

• Principles of accounting
• Business data analytics
• QuickBooks training
• Cost accounting
• Managerial accounting
• Corporate taxation
• Contemporary auditing

Students can also use essential tools to support their accounting education, such as apps and research sources. It’s also helpful to develop effective study habits to increase the chances of progress in studies, as some of these classes may be intensive and demanding.

Anyone who is considered a math wiz or enjoys crunching numbers and deciphering patterns in financial data might be a good accounting student. Or perhaps concepts like double-entry bookkeeping are attractive to them. This career —and the potential to pursue a managerial role—could be a path to work toward.

Additionally, the following skills can help in an accounting role:

• Critical thinking
• Attention to detail
• Organizational prowess
• Oral and written communication
• Math

Experience in the accounting field can provide hands-on knowledge that may help to pursue management opportunities. Networking may also be beneficial. Aspiring accountants can immerse themselves in the field by finding a mentor, asking questions and learning about the various facets of accounting.

They can also consider attending accounting conferences and joining professional associations that offer opportunities to expand their skills and strengthen their networks.

The journey toward running an accounting department can vary. Some managers begin their careers as cost accountants, junior internal auditors or trainees for other accounting positions. The goal is to start with the right educational foundation and continue building skills and experience over time.