Whether you’re considering a career in accounting or already have work experience in the field, you may be wondering what’s the natural next career step. When climbing the corporate accounting ladder, you have a couple of options. You can either continue in a more hands-on capacity as a staff or senior accountant, or you can choose to transition into the managerial track.
In this blog post, we’ll focus on the second option, becoming an accounting manager. Keep reading to learn more about this middle management role, from what it is and what accounting managers do to where they work, the skills you need to become one, and much more.
What Is an Accounting Manager?
Simply, an accounting manager is the lead position on an accounting team. More specifically, these individuals are tasked with filing taxes, overseeing pre-determined budgets, generating reports, maintaining financial records, establishing internal processes, and delegating tasks to team members.
“Accounting manager” is only one term for this position, and depending on where they work, people in this role may also be referred to as budget managers, finance managers, or payroll managers.
What Does an Accounting Manager Do?
As the head of their team, an accounting manager’s duties are multifaceted and typically split between their management responsibilities and more accounting-focused tasks. In addition to the list provided above, you can expect your work as an accounting manager to include:
- Creating financial statements
- Performing financial analysis
- Reporting on the department’s performance to the executive team
- Supervising and coaching direct reports
- Making sure that the accounting department follows the generally accepted accounting principles (GAAP) — a series of accounting guidelines set forth by the Financial Accounting Standards Board (FASB)
- Ensuring that accounting processes and policies are upheld
It’s important to note that this is only a general list of accounting manager responsibilities. While most companies will ask their accounting managers to perform many of these duties, the exact expectations will vary depending on the opportunity. For a more in-depth overview of what an accounting manager role entails, we recommend checking out the job description or job summary section of a posting, like these examples from Indeed.
How Much Does an Accounting Manager Make?
Accounting manager salary varies depending on factors such as employer, industry, and job location. In general, you’ll earn more working for larger companies in major cities. Here in the U.S., the average base salary for accounting managers is close to $91,000 per year, with higher-paid individuals earning closer to $130,000 annually and those on the lower end making roughly $62,000.
Accounting Manager vs. Finance Manager: What’s the Difference?
From generating reports to keeping higher-ups updated on department performance, accounting and finance managers have some overlap in their duties and responsibilities. However, the main difference between these two roles is that while accounting managers generally focus on day-to-day accounting tasks and supervising a department, finance managers oversee long-term financial planning and risk management efforts.
Take a look at the following chart for a breakdown of the job descriptions and responsibilities for both roles.
| Accounting Manager | Finance Manager | |
| Job Overview | Oversees a company’s accounting team and takes on accounting duties in addition to serving in a managerial capacity. Typically reports to the controller or CFO. | Oversees a company’s financial health. They are responsible for creating reports, spearheading investments, and implementing long-term financial strategies. Typically reports to the CFO. |
| Responsibilities |
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|
How to Become an Accounting Manager
Accounting manager is a middle management role, meaning you’ll need the right combination of qualifications and professional accounting experience before you can begin applying for open positions. Out of these two prerequisites, experience is the most straightforward: You’ll need to have worked in accounting for at least five years, with some of that time spent in a senior or staff accountant role.
The list of qualifications you’ll need to become an accounting manager is a bit more extensive and includes the following:
- At minimum, a bachelor’s degree in accounting, business, economics, finance, or a related concentration
- Though not required, a master’s degree in accounting may be preferred
- CPA certification may sometimes be required, but is always preferred
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Key Accounting Manager Skills
To be successful in this role, accounting managers must possess several pertinent hard skills, or ones that are directly related to accounting activities. If becoming an accounting manager is one of your professional goals (or if you’re an employer looking to fill a vacancy), these are the accounting-specific skills to focus on:
- Financial management and consulting
- Technical skills, such as proficiency in accounting software, Excel, and others
- Fluency in GAAP principles
- Auditing
- Risk management
Well-rounded candidates will also have a set of soft skills that complement their hard skills. These proficiencies are more general in nature and should include strong abilities in:
- Interpersonal communication
- Management
- Attention to detail
- Organization
- Problem-solving
Where Do Accounting Managers Work?
Accounting teams play a vital role in maintaining the financial well-being of companies and organizations of all types, across a wide variety of industries. As such, accounting managers are needed to run the accounting departments at private and publicly traded corporations, government agencies, nonprofit entities, educational institutions, and more.
Once hired, accounting managers primarily work with other members of their department as well as with direct reports but will also spend time building relationships and working closely with their employer’s higher-level managers and finance executives.
Common Accounting Manager Interview Questions
If you’ve made it this far, you likely have a good idea if the accounting manager role sounds like a good fit for your interests and professional goals. If it is, and you have the necessary qualifications and experience, the only thing left to do is to begin applying. And after application, hopefully, comes interviews.
Interviewing for any role can seem daunting, so when it comes to interviewing for a job you really want it helps to be as well prepared as possible. Below are some common interview questions; we suggest reviewing them carefully ahead of time to give yourself a chance to think about how you’ll answer them if the hiring manager asks them on the day.
- Talk about an accounting process you’ve implemented or improved.
- What do you do to minimize the possibility of errors in your work?
- Describe a time when you needed to explain accounting processes to someone outside of the accounting team.
- What’s your approach to managing your team’s performance?
- What do you think is the biggest challenge facing the accounting profession today?
Accounting Manager Career Outlook & Trends
The U.S. Bureau of Labor Statistics projects that accounting roles will experience four-percent growth between 2022 and 2032, a rate that’s on par with the growth of all other professions. When looking at specific numbers, this means that, over the course of the decade, roughly 126,500 accounting openings are expected each year. When looking beyond 2032, this trend for growth is expected to continue as a result of a growing economy, increased globalization, and complex tax and regulatory systems.
In today’s modern world, it’s natural to have concerns regarding the impact of artificial intelligence on the accounting field. At this time, the Bureau does not expect this emerging technology to negatively impact demand.
FAQs
Q: What is an accounting manager?
A: Accounting managers oversee the daily activities of a company’s accounting department. Their responsibilities include preparing financial reports, reporting on department performance to upper management, tax preparation, determining and enforcing department processes and procedures, record keeping, and supervising and coaching accounting team members.
Q: How can I become an accounting manager?
A: To become an accounting manager, at least five years of relevant work experience, with some of that time spent in a senior or staff accountant role, is generally required. Additionally, holding a bachelor’s degree in a relevant concentration is almost always a must. While not mandatory, having a master’s degree and/or CPA certification can make your application stand out to hiring managers.
Q: What’s the difference between an accounting manager and a finance manager?
A: Accounting and finance managers have some overlap in their duties and responsibilities. However, the main difference between the two roles is that while accounting managers generally focus on day-to-day accounting tasks and supervising their departments, finance managers oversee a company’s long-term financial planning and risk management efforts.
Q: How much do accounting managers make?
A: An accounting manager’s salary will depend on the company they work for, the industry they work in, and their location. On average, accounting managers in the U.S. can expect to earn close to $91,000 per year, with higher-paid individuals making upwards of $130,000 annually and those on the lower end making roughly $62,000.
Making the Most of Your Search
Are you in the midst of your search for a job as an accounting manager? Or maybe you have a vacancy you need to fill at your company. Whether you’re a job seeker or an employer, when it comes to finding the right fit, it’s important to have all the help you can get.
KBW Financial Staffing & Recruiting is a locally-owned and managed, full-service staffing firm, providing the region’s top employers with highly-qualified job candidates and jobs in the accounting and finance fields. Our success is built upon a highly personalized approach resulting in thousands of successful matches between professionals and employers, and we’ve placed hundreds of accounting managers since opening our doors in 2005.
Our team of recruiting experts is here to help with your search. Get in touch today to start the conversation, or browse our open positions to see what’s available.
