How to become an accountant? Must read for Indian graduates

To be a successful accountant, whether in India or anywhere abroad, you need a certain set of skills and abilities. Some of these include a knack for numbers, an eye for detail and a mind built for analysing data. Every organisation, whether large, mid-sized or small, needs accountants. Companies look for sharp, capable accounting experts who can monitor, examine and record the various transactions, expenses and revenue. It’s no surprise that accountants will always be in high demand.

Commerce students are most likely to join this esteemed club of professionals. Many of them register for an accounting course in the hopes of landing a job with one of the top companies. Programs such as ACCA, CPA, CMA, CIMA and CA are the best qualifications for accountants in India. These certifications offer an intensive syllabus and a comprehensive understanding of the industry. If you hope to own a business card with ‘accountant’ written on it, the above courses will help you achieve your goal.

But what kind of accountant do you want to be? It’s not enough to learn how to become an accountant. You should also figure out what type. The three main positions are financial, management and cost accountant. Let’s take a closer look at each designation to discover which one is the right fit for you.

The 3 types of accountants

Accountants are responsible for financial statements, auditing, cash flow and treasury activities. They help to keep the company in the red and avoid losses.

India has three kinds of job profiles for accountants:

• Management Accountant
• Financial Accountant
• Cost Accountant

All three are coveted designations within the finance industry. They are equally challenging yet rewarding. To know more about them, keep reading.

Also Read – 3 Types of Accounting – Understand each one in detail

1. Management Accountant

Management accountants, also known as managerial accountants, are responsible for various tasks, such as budgeting, forecasting and performance measurement that directly help or advise company leaders. They create performance-based reports that allow management to make better, informed decisions for the organisation.

With the help of a competent management accountant, companies can prevent unnecessary costs and optimise budgets. They can plan and prepare financial decisions with clarity and confidence. Many professionals have learnt how to become an accountant in this field and have gone on to enjoy great success in their careers.

Key responsibilities: 

• Analysing financial data
• Cost control and compliance
• Budgeting
• Building projections
• Internal auditing

Skills needed: 

• Analytical skills
• Budgeting capabilities
• Forecasting techniques
• Problem-solving abilities
• Business savviness

Top qualifications for management accountants in India

How to become an accountant who specialises in managerial accounting?

You can apply for any of the following certifications:

• CIMA
• ACCA
• CPA
• INDIAN CMA
• US CMA
• CA
• B.com/M.Com in accounting and finance

Salary expectations:

• The average salary is Rs 4 to Rs 5 lakhs a year.
• Established management accountants can earn over Rs 10 lakhs per annum.

source: payscale.com

Want to become a reputed Management Accountant, but don’t know how?

2. Financial Accountant

Financial accountants document and summarise the various financial transactions within a time frame. They keep track of all expenses, costs, profits and losses. To do this, they have to learn accounting standards and bookkeeping. The reports and statements generated help investors, shareholders and even employees understand the business better. ACCA and CPA are some of the best qualifications for accountants in India.

Key Responsibilities 

• Collecting and observing financial data
• Documenting and maintaining reports
• Creating accurate financial statements
• Handling tax payments
• Managing internal audits

Skills needed:

• Knowledge of accounting principles and standards
• Understanding of how to draft financial statements and reports
• Time management skills
• Efficient communication skills
• Proficiency with numbers and figures

Top qualifications for financial accountants in India:

If you want to become an accountant in this specialisation, here are some courses for which you can apply.

• US CPA
• CA
• IFRS
• Financial modelling
• B.com/M.Com in accounting and finance

Salary expectations:

• The average salary is Rs 4 to Rs 5 lakhs a year.
• Established financial accountants can earn over Rs 10 lakhs per annum.

source: payscale.com

Can’t figure out which Financial Accounting course is best for you?

3. Cost Accountant

As a cost accountant, your job primarily will be to calculate the full cost of a company’s production by analysing and examining all the variable expenses. You will also work in asset management, budgeting and cost management within the organisation. Cost accountants work closely with senior management and eventually move to roles such as accounting manager, budget director, internal auditing manager or pricing manager.

How to become a cost accountant? Most professionals are certified in Cost and Management Accountancy (CMA), a prestigious qualification offered by the Institute of Cost Accountants of India.

Key Responsibilities

• Collecting and analysing information about various costs
• Determining the cost of the item or service sold
• Establishing standard costs of goods and services
• Working on the CVP or cost-volume-profit analysis

Skills needed:

• Knowledge of accounting software
• Understanding of accounting principles and standards
• High proficiency with numbers and calculations
• Research skills
• Problem-solving and analytical skills

Top qualifications for cost accountants in India:

• INDIAN CMA
• ACCA
• US CPA
• B.com or M.com degree in accounting and finance

Salary expectations:

• The average salary is Rs 6 lakhs a year.
• Established costs accountants can earn over Rs 10 lakhs per annum.

source: payscale.com

Also Read – Top 5 Foreign Accounting Courses That Can Make You Rich and Respectable!

How to become an accountant with Proschool’s Accounting Courses

When you study with one of the finest coaching institutes in India, you know you will receive a quality education. IMS Proschool offers students several accounting courses, such as ACCA, CPA, CMA, CIMA and IFRS. These programs are some of the top qualifications for accountants in India. They are taught by expert professionals who have spent considerable time in the industry and help students benefit from their experience. Professors share valuable insights and unique perspectives while offering practical training to ensure you transform into a future-ready accountant. The classroom sessions are engaging and intellectually stimulating. They give a taste of what the industry is really like. This helps to develop your skills, knowledge levels and overall expertise.

Why Proschool is the best choice for you:

• There are 10+ coaching centres set up cities across India.
• Experienced professors use active learning methodologies and real-life case studies.
• You can also enrol for the engaging online classes.
• Additional resources are provided, such as mock exams, practice papers, study prep books and learning videos.
• You get an online portal with all the study materials, recorded lectures and mock exams that simulate the real ones.
• There is also a focus on soft skills such as good communication, resume writing and interview etiquette.
• Proschool has a one-on-one placement assistance program that contains job openings from many top companies.

FAQs

How to become an accountant after completing a B.com degree?

A bachelor’s degree in commerce is the minimum qualification you need to become an accountant. However, in today’s competitive world, a professional accounting certification such as BBA in accountancy, ACCA or CA gives you an edge and makes you more appealing to a recruiter.

What is the main difference between management and financial accounting?

Management accounting is an internal company process which analyses business transactions. Accountants offer advice that helps senior management make better business decisions.

Financial accounting collects and records data to create financial statements that are for external use.

What is the scope for a career in cost accounting?

It is a highly lucrative career. Companies are always looking for professionals who have the qualifications of cost accountants in India. Top companies who hire cost accountants include L&T, Accenture, Nestle, ICICI Bank, Tata Motors and many, many more.

How will the CIMA course help me with management accounting?

The CIMA syllabus is built around enhancing strategic and management skills. The course is geared towards teaching core concepts and ensuring skill development. When you are a CIMA student, you’ll learn about creating strategies, analysing information, risk management, budgeting and financial planning. All these relevant topics show you how to become a management accountant.

Conclusion

Many paths can teach you how to become an accountant. But do you want to be a financial, managerial or cost accountant? First, take the time to research and understand which job profile will suit you best or interests you. Once you know what type of accountant you want to be, you can apply for any of the top qualifications for accountants in India.