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Last Updated By Aindrila on 02 Sep, 2022
According to the IBEF, it is estimated that Cost Accountants till 2028 will see a massive rise in job opportunities, around 6%. Financial Analysts also known as Cost Accountants perform different types of financial services for businesses/firms. A Cost Accountant is responsible for collecting, adjusting, auditing and scrutinising financial data. The purpose of cost accounting is for budget preparation and profitability analysis. They collate the numbers, including data about planning systems, wages, bonuses and operating policies, into financial reports. The purpose of this is to help the management take decisions on the basis of this information.
According to the firm that a Cost Accountant works in, their duties might vary. Some of the usual duties of a Cost Accountant include:
To study Cost Accountancy, candidates need to clear three levels - CMA Foundation, CMA Intermediate and CMA Finals. The Cost Accountancy course can take up to 8 months to 18 months to complete. To complete the course, the aspirants need to complete mandatory 100-hour training.
As a Cost Accountant spends a lot of time analysing data, he/she should have experience with the latest software. There are some other skills required by a Cost Accountant, they are:
The aspirants need to complete the Cost and Accountancy (CWA) course from the Institute of Cost and Work Accountants of India (ICWA). There are three stages of this course. Those who have passed 10+2 are eligible to apply for the foundation course, which has a duration of eight months, and the age limit for this is 17 years.
Upon completion of this stage, one can apply for the second stage which is the intermediate level. For this level, one should have completed education in 10+2+3 from any recognized institute, and the candidate should not be less than 18 years. The duration of this intermediate level is ten months. Those who are able to clear all the eight papers in this course can then apply for the final stage. The duration of the final level is eighteen months. Post this, one can become a certified cost accountant.
10+2 or its equivalent is needed to apply for the ICWA course.
ICMAI (Institute of Cost and Management Accountants of India) formerly known as ICWAI is one of the premier institutes for students wanting to pursue a career as a Cost Accountant. Various courses are offered to the students after Class 12 by the ICMAI.
Courses that students can study at a good college are:
Courses offered by ICMAI
List of Advanced Courses offered by ICMAI
There is a lot of demand for Cost Accountants in the government sector, banking, finance, private sector, education, research and training sectors and also in public utility and service sector. Cost Accountants can work as:
Cost Controllers-A cost controller is responsible for tracking and analyzing the costs related to a project, such as large-scale construction projects. Cost controller is responsible for forecasting the expenses, planning budgets and verifying the invoices.
Chief Auditor-A chief auditor is involved in reviewing the accounts of companies and ensuring the validity of their financial records. He also prepares reports and other financial statements.
Chief Internal Auditor-Chief Internal Auditor is responsible for monitoring the operation of the internal audit system and verifying the reliability of the information systems.
Financial Consultant-Financial consultants work with their clients and help them with financial plans and also offer advice regarding taxes, investments, and insurance.
Chief Accountant-Chief accountants play an important role in handling all financial transactions for a company. Their job entails handling tax-related duties, maintaining the budget, collecting and paying bills etc.
Financial Controller-A financial controller is the head of accounting and is responsible for overseeing the preparation of financial reports. His other duties include monitoring internal controls and conducting compliance audits, budgeting process and analyzing financial data.
Cost Accountants are in great demands in the following:
Some companies where Cost Accountants can seek employment are as follows:
A Cost Accountant with less than 5 years of experience can earn an average salary of roughly Rs. 411,000, the one who is a mid-career employee can expect roughly around Rs. 606,000. And an experienced Cost Accountant can get approx. Rs. 962,000.
Note: The above figures are an estimate and may vary from individual to individual and company to company
According to the different job roles, a Cost Accountant gets a lucrative salary. The table given below shows the salary given to different categories of Cost Accountants.
Job Roles | Average Annual Salary |
Accounting and Auditing Clerk | 2 to 2.5 LPA |
Audit Manager | 5 LPA |
Forensic Accountant | 4.5 LPA |
Investment Analyst | 2.50 to 2.85 LPA |
Chief Accounting Officer | 3.5 LPA |
Economic Officer | 5.82 to 6.15 LPA |
Banking Manager | 4 to 8 LPA |
Personal Finance Consultant | 2.85 to 3.25 LPA |
Investment Banker | 2.92 to 3.5 LPA |
Economist | 3 to 7 LPA |
There are a number of books and study material that can help you prepare for a career in cost accountancy. Some of them are listed below:
Like every other profession, this one also comes with its own set of pros and cons. You can have a look at both and evaluate if this is the right field for you or not. If the pros outweigh the cons then maybe you can look forward to a career as a Cost Accountant.
Listed below are some pros of this job:
Stable and growing field
The prospects in this field are expected to grow in the years to come. As long as people require help with taxes and their businesses, there is going to be a need for accountants.
Professional Growth
There is great potential for growth when it comes to choosing a career path as a cost accountant. After establishing yourself in this field, there is an easy career advancement.
Good remuneration
The remuneration and perks are great. You will get a good amount which will enable you to cover your expenses and have a comfortable lifestyle
Slow and dull
It isn’t a glamorous field as such. The day-to-day work will require a lot of math and dealing with numbers which may seem boring after a certain point.
Stressful
It is going to be stressful at times because you’ll be in charge of an organisation’s finance so there is bound to be some pressure. However, if you are someone who can stay cool and calm under pressure, it won’t be tough for you.
Long Hours
There are bound to be long hours especially if you are trying to climb the career ladder. During the busy time of the financial year, days can be pretty hectic.
Take our test and find out if it suits your strengths.
Every profession has its pros and cons, similarly, a career as a Cost Accountant also has its positives and negatives. You need to look into the pros to do well in your career. The advantages of this field are it gives you a good salary, has professional growth, stable and growing field as people would hire people as long as there are taxes and businesses. The disadvantage of being a Cost Accountant is that the work sometimes gets really stressful, slow and monotonous.
The basic duty of a Cost Accountant is to look at the budget of the organization. The organizational budget consists of the production and purchasing costs. Cost Accountant aspirants after their Class 10 should choose a stream that can somewhat help them in their career. Do not take fine arts but you can choose mathematics or accounting as it will help you in your CMA course because it is tough and needs a lot of skills and practice. Students after clearing 10+2 can start the CMA Foundation course while those who graduated can directly apply for the CMA Intermediate course.
There are quite a lot of good books available in the market for studying Cost Accounting. The names of such books are Students Guide to Accounting Standards (CA/ICWA Final Examinations) by D.S. Rawat, Cost and Management Accounting (for All India) by S.P Jain and K.L. Narang, Advanced Management Accounting (Cost Management and Operations Research) by Dr J.B. Gupta, Advanced Cost and Management Accounting-Problems and Solutions by V.K Saxena and C.D. Vashist, Scanner ICWA Stage I by Dr Arun Kumar and Accounts Study Material, Law and Audit by N.D. Kapoor.
As a Cost Accountant, you get to learn so many things in different fields like Finance management, business development, analysis, etc. People who are interested in these fields can do a course and become Cost Accountants. However, people who after getting the degree don’t want to work as a Cost Accountant can become a teacher related to this field, write books and study materials on Cost Accounting and many more.
Cost Accountants are in high demand in the public sector, private sector, banking, finance, education, research, etc. There are different types of job profiles where Cost Accountants can work such as Cost Controllers, Chief auditors, Financial Consultants, Chief accountants, Financial controllers, Chief Internal auditors, etc. The number of job opportunities for Cost Accountants is also rising.
Cost Accountants are in great demand in today’s world. Job opportunities of a Cost Accountant are increasing every year. There are quite a lot of good recruiters who hire Cost Accountants, they are PwC, Deloitte, ITC Hotels, Amazon, Nestle, Bharat Electronics Ltd. Vedanta Limited, Boston Consulting Group, Cipla Ltd., etc.
As Cost Accountants work in a dynamic field, they need to have certain skills to get success in their roles. The skills required by a Cost Accountant are problem-solving skills, communication skills, mathematical skills, analytical skills, need to be a good team player, business judgement, responsible, an eye for detail and many more.
Aspiring candidates need to study the Cost and Accountancy (CWA) course at the Institute of Cost and Work Accountants of India (ICWA) currently known as ICMAI (Institute of Cost and Management Accountants of India). There are three levels in the course, CMA Foundation, CMA Intermediate and CMA Final. Candidates who have passed their Class 12 are eligible to apply for the foundation course, whose duration is eight months, and the age limit for this is 17 years. On the other hand, aspirants completing 10+2+3 can apply for the intermediate level. Upon clearing all eight papers, students can then move on to the final round.
The important work of a Cost Accountant is to perform financial analysis to help a business. They need to analyse the cost of production of a company to help them set a budget and increase profit. The factors of production that they analyse are Day-to-day operation, Labour, Shipping, Inventory, Equipment, Repairs, Renovations, Administration and Leasing costs.
Cost Accountants inspect the costs of the product and services and create cost reports. It is important for them to analyse all the factors of production. They need to study the Fundamentals of Economics and Management as Paper I, Fundamentals of Accounting Paper II, Fundamentals of Laws and Ethics Paper III and Fundamentals of Business Mathematics and Statistics.
