Career Path to become Cost Accountant
Role / Profile
Who can become ?
A Cost Accountants is a professional who is responsible for recording, classifying, analysing, summarizing, allocating and evaluating various alternative courses of action and control of costs. It is an essential management services and an integral part of an organisation. The primary job of a Cost Accountant is to ensure that the managerial decisions are within the cost prescriptions.
What are the roles/responsibilities of a Cost Accountant?
The basic role of a Cost Accountant is to research the past and present financial performances of projects and see that the costs of the various factors are according to the organisational plans.
Some of the major roles/responsibilities of a Cost Accountant are:
• Planning, studying and collecting data on raw materials, labour and inventory which determine the cost of business activities.
• Analysing and preparing reports on actual manufacturing cost comparing the standard production costs.
• Making estimates of new and proposed production costs.
• Maintaining the cost accounting system of an organisation and analysing the cost and audit reports.
What are the skills/tools associated with Cost Accounting?
• Advanced knowledge of MS Office – mostly in MS Excel, MS Word and PowerPoint.
• Strong analytical and statistical skills.
• Basic knowledge of common accounting software.
• Good presentation skills and knowledge of cost accounting.
What are the career outcomes after a Cost Accountant certification?
With a certification in Cost Accountant, you can expect to establish a successful career in the finance industry. Some of the career outcomes you can expect:
• Financial Analyst/Finance Manager
• Senior Accountant/Accounting Manager
• VP – Finance/Director of Finance
• Chief Financial Officer
What is the average salary of a Cost Accountant?
The average salary of a Cost Accountant is around ₹ 4.5 Lacs per annum and with experience, it can go up to ₹ 10 Lacs per annum. A certified Cost Accountant can have a better career growth and earn more than a non-certified one.
What are the advantages of becoming a Cost Accountant?
Cost Accountants are core to organisations, creating budgets and managing costs. It can be an important step in career path for finance professionals.
Following are some of the advantages of becoming a Cost Accountant:
• Being a Cost Accountant can help you to boost your career in the right direction as with experience, one can progress easily to better positions.
• The average salary of a Cost Accountant for those who are starting their career is relatively better than some of the other areas in the finance industry.
• As a Cost Accountant, you can earn a wealth of experience which can help you in your career in the future.
• Fresh Graduates
• Finance Executives
• Staff Accountants/Assistant Accountants
• Administrative Assistants
Who can become a Cost Accountant?
• Fresh graduates – If you are a fresh graduate and want to become a Cost Accountant, you can easily get opportunities if you have the skills and enrolling in a certification course can help you a lot.
• Non-experienced professionals
If you do not have experience in the field, recruiters are less likely to hire you. Hence, such professionals can take up a certification course to gain the required skills and hands-on experience.
• Experienced professionals – If you are already in an accounting profile and have the requisite skills, then it would be easy for you to become a Cost Accountant.
Naukri Learning offers a variety of online Cost Accountant courses which will help you to boost your career, get better jobs and receive higher salaries.
What is the eligibility for a Cost Accountant profile?
There are no fixed eligibility criteria for a Cost Accountant role. However, one needs to have a certain amount of accounting knowledge and good analytical skills. Most of the Cost Accountants have a degree in Commerce, Finance or Statistics.
Also, if you have a certification, you will have an added advantage over non-certified professionals.
Why are candidates going for a Cost Accountant profile?
Cost Accountant is the springboard to a wonderful career journey for professionals who want to work in the finance industry. Below are some of the prominent reasons:
• Fresh Graduates-
Most fresh graduates start as staff accountants or finance executives and transition to Cost Accountants. If you have a certification, there is a chance to directly work as a cost accountant.
• Finance Executives- Finance executives are usually entry-level positions, and hence moving to a Cost Accountant position is an enhancement of their career.
The salary of Cost Accountants is relatively higher than that of finance executives.
• Staff Accountants/Assistant
For most staff accountants/Assistant Accountants, being a Cost Accountant will be a boost to the career and there are better opportunities to grow as well.
Recruiters usually look for the following points while hiring a Cost Accountant:
• Prior experience – Any prior experience in the field can make the recruiters interested in you. It is also great if you can have any transferable skills like statistical, analytical, and problem-solving.
If you do not have any prior experience, a certification can help pave a way to your dream of becoming a Cost Accountant.
• Key Skills – Financial analysis, MS Office, product costing, variance analysis, product pricing and budgeting.
Which are the top recruiters that hire Cost Accountants?
Cost Accountant is an attractive position to start a career in the finance industry. Some of the top recruiters that hire Cost Accountants are Genpact, Indus Towers, Xerox, Aon Hewitt, KPMG and Torrent Pharmaceuticals.