What factors influence the salary of a management accountant?
Chartered management accountants who have 3 years post-qualification experience (PQE) often command higher salaries due to their increased expertise and the knowledge they can bring to an organisation.
If a management accountant wants to further enhance earning potential, it is a great idea to pursue advanced qualifications, such as becoming a Chartered Management Accountant (CIMA) or Certified Public Accountant (CPA). Additionally, learning through workshops, seminars, and staying up to date with industry trends can also contribute to a higher salary.
A newly qualified management accountant can earn between £65,000 and £80,000 per annum (depending on industry and location).
Certain industries, such as Banking & Financial Services, are likely to have higher revenue streams, so they can offer competitive compensation packages to those with specialised skills. Commerce & Industry have broader salary ranges as it is more general and covers a wide range of businesses outside the financial sector.
A management accountant working in Banking & Financial Services can earn up to £80,000, however those working in Commerce & Industry can earn 21% lower at £66,000.
Larger businesses tend to have more complex financial operations and higher budgets, which in turn can provide competitive salaries for their employees.
A qualified management accountant working in Commerce & Industry in a medium enterprise (with a headcount of 50 – 250) can offer a salary range of £60,000 – £66,000, whereas a large enterprise (with a headcount of 250+) can offer a salary range of £60,000 – £70,000, a 6% difference.
Salaries are higher in major UK cities areas where the cost of living is higher, and the demand is greater. London tends to have higher salaries, for example a management accountant working in London can earn between £35,000 and £80,000 and those working in the North can earn between £45,000 and £60,000, a 25% difference.