facebook

Cost Accountant

Who is a Cost Accountant?

A Cost accountant is responsible for collecting, adjusting, auditing, and scrutinizing all the financial information. The purpose of cost accounting is for budget preparation and profitability analysis. A cost accountant collaborates the numbers which include the data about planning systems, wages, bonuses, and operating policies that are into financial reports. Here, the purpose is to help the management to make decisions based on the available information.

A cost accountant is required to have strong technical skills as cost accountants spend a good amount of time analyzing data so that they need to have some experience with the latest software. A cost accountant also needs to have strong analytical skills and an interest in finance.

Here are some responsibilities of the cost accountant include:

  • Analyzing the sales trends
  • Preparing cost reports
  • Advising and suggesting the ways to economize by evaluating the cost and the implicating different production methods.

What are the key responsibilities of the Cost Accountant?

The responsibilities of the Cost Accountant will vary but the examples include.

  • Collecting and validating the data to determine the fixed and the variable costs of the business activity such as the rent, raw material, purchases, inventory, and labor.
  • Analyzing the changes that are made in the product design, raw materials, manufacturing methods, or the services that are provided to determine the effects on the cost.
  • Analyze the actual manufacturing costs and prepare the periodic reports that are comparing the standard costs to the actual production costs.
  • Recording the cost information to sue controlling expenditures
  • Recommend the cost-saving options.
  • Perform ongoing reconciliations of various cost reports that are against the software systems to ensure accuracy.
  • Providing management with reports that are specifying and comparing the factors affecting the prices and the profitability of the products or services.
  • Initiate the month-end closing and the reporting process, which they, in turn, submit to the management.
  • Perform the physical inventory inspections and monitoring the inventory management information systems.

Eligibility for Cost Accountant

Who can be a cost accountant?

The candidate is required to complete the Cost and Accountancy CWA course from the Institute of Cost and Work Accountants of India (ICWA)

  • Candidates should have passed 10+2 eligible to apply for the foundation course.
  • After the completion of this stage, one can apply for the second stage which is the intermediate level. For this, an individual need is required to have completed 10+2+3 from any recognized institute and the candidate should not be less than 18 years. The duration of the intermediate level is 10 months. Those who can clear all the eight papers here can apply for the final stage. Post this an individual becomes a Cost accountant.

Benefits of having a Cost Accountant

What are the benefits of having a Cost Accountant?

  • If in case the indirect costs for space and the employee training have been exceeding the projection then the cost accountant will investigate the matter and suggest better alternatives.
  • If the product expenses per unit have outpaced the revenue then the cost accounts details everything about the same and provides information about the strategic solution
  • Calculation of the equipment depreciation and the inventory value and the identification of the finance tracking gaps are within the rule's purview. In this case, the cost account provides the cost gap solutions and the details on budget and the performance measure design.

Benefits of having a Cost Accountant

What are the benefits of having a Cost Accountant?

  • If in case the indirect costs for space and the employee training have been exceeding the projection then the cost accountant will investigate the matter and suggest better alternatives.
  • If the product expenses per unit have outpaced the revenue then the cost accounts details everything about the same and provides information about the strategic solution
  • Calculation of the equipment depreciation and the inventory value and the identification of the finance tracking gaps are within the rule's purview. In this case, the cost account provides the cost gap solutions and the details on budget and the performance measure design.

Types of Job roles for a Cost Accountant in Mumbai

The Cost Accountants are in demand in the Government Sector, banking, finance, private sector, education, research, and the training sectors and also in public utility and the service sector. Cost Accountants can work as:

Cost controller: The cost accountant is responsible for tracking and analyzing the costs that are related to a project, like large-scale construction projects. The cost controller is responsible for forecasting the expenses, planning the budgets, and verifying the invoices.

Chief Auditor: He is also the chief auditor is involved in interviewing the company's accounts and also ensuring the validity of their financial records. He also reports and other financial statements.

Chief Internal Auditor: The cost accountant also plays the role of the Chief Internal Auditor is responsible for monitoring the operation of the internal audit system and verifying the reliability of the information system.

Financial Consultant: The financial consultants work with the clients and also helps them in the financial planning and also offer advice for taxes, investments, and insurance.

Chief Accountant: Chief Accountant plays an important role in handling all the financial transactions for a Company. The job entails handling the tax-related duties and also helps in maintaining the budget, collecting and also paying bills, etc.

Financial Controller: A financial controller is the head of the accounts and is responsible for overseeing the preparation of the financial reports. The other duties include monitoring internal controls and also conducting the compliance audits, budgeting process, and analyzing financial data.

Skillset required

A cost accountant plays an important role in maintaining profitability and working capital. They ensure management has a clear understanding of the cost base. The Cost accountant is required to recommendations and identifies the opportunities to make the delivery of the organization's goods and services as cost-efficient and profitable as possible.

  • He can identify the strategic options to add value, using data and technology.
  • Analyses and evaluates the data using the appropriate technologies and tools.
  • Applies technologies to visualize data clearly and effectively.
  • Can apply skepticism and ethical judgment to use the data and the data technology.
  • Who can link development in global trade, markets, business practices, and the economic environment is required for improvement in the financial and the risk management of the organization.
  • Advises the business asset valuation, capital projects, and investments by using the appropriate analytical-qualitative and quantitative techniques.
  • Can identify, evaluate and give advice on the alternative sources of business finance and the different ways of raising finance.
  • Can communicate and avises the impact on the financial decision making on the current developments in regulation, governance, and ethics.
  • It assessing and advising the appropriate strategies to manage the business and the organizational performance regarding the business and the financial risk and is also effectively communicating the impact.
  • Is applying the development performance management, in wider business and the technological environment with the content of strategic planning and implementation.
  • Is directing organizational performance through the selection and the measurement of the financial and the non-financial performance indicators.
  • Collaborating on the key tactical and the organizational areas of the budget and control, investments capitals, people, and resource management.
  • Consulting the design and the use of current and emerging technology and information systems to improve the strategic decision-making and performance of the organization.

Why become a Cost Accountant?

Stable and growing field: The prospect in these fields are expected to grow in the years to come. As long as the people are required to help with the taxes and their businesses, there is going to be a need for accountants.

Professional growth: There is a great growth potential when it comes to opting for the cost accountant. Once established there is easy career advancement.

Good remuneration: The remuneration and the perks enable the cost accountant to cover the expenses and have a comfortable lifestyle.

Last updated: Aug 24, 2021

X
User

Hi there,

We are available online!

loading...