How To Have A Career In Cost Accountancy
Cost Accountancy is one of the sought-after professions in our modern world. Every day new types of business are rising. The old ones are expanding more than ever. New companies are requiring professionals good with their money.
To be a Cost Accountant does not mean merely being good with the money. More and more importance is being given to the soft skills and communication skills of the industry professionals. A Cost Accountant's general routine includes working in the office, but he also visits other departments.
About the Cost Accountant
A Cost Accountant is an essential employee of an organization. There are some skills a Cost Accountant should possess. They are –
- Good verbal and written communication skills.
- He/she should have good presentation skills. He should be able to present decisions, summarize essential issues.
- He/she should have good cross-functional skills because a Cost Accountant's work includes connecting different departments and working between them.
Cost Accountants help to decide the budget and review performance. They often set unit costs. They understand where the organization is spending money and determine which services, products, and departments bring more profit.
Eligibility to Become A Cost Accountant
Students who aspire to be a Cost Accountant primarily should have High School( 10+2) education. There is an entrance exam to crack if one shows interest in enrolling in the Cost Accounting course in India.
Institute of Cost and Works Accountants of India provides a course in Cost Accounting to students, interested in the profession. There are altogether three stages in the course. For the foundation course, students who are high school pass-out are only allowed.
The Foundation course has a duration of eight months. The age limitation is 17 years. Students who completed this foundation course can apply for the intermediate-term. If any students who have completed graduation want to take part in this course can take direct admission in the intermediate-term. The age limit is 18 years.
Students who have completed this stage can enroll in the final course. The duration of the intermediate-term is ten months, and there are eight papers to clear in the exam. The final stage lasts for almost 18 months. After successful completion of the three steps, one can be called a Cost Accountant.
How to Become a Cost Accountant
In India, one must enroll in the ICWA course to be a certified Cost Accountant.
- First, he/she should complete his school education, then apply for the course of Cost Accountant offered by ICWA.
- Upon enrolling, students should take the foundation course, which lasts for eight months, and complete the introductory period.
- Students who passed the foundation exam and students in general graduate can enroll in the intermediate course.
- The intermediate course lasts for about ten months. After completion of this course, students are allowed to enroll in the final stage of the program.
- The final course lasts for eighteen months. After the final term, one becomes a Certified Cost Accountant.
Top Cost Accountancy Institute In India
- The Institute of Cost Accountants of India (ICAI), Bangalore.
- Narsee Monjee College of Commerce and Economics, Mumbai.
- Bharathy Educational Centre, Namakkal.
- GC Rao Academy, Bangalore.
- Knowledge Academy of Research and Education (KARE), Palarivattom.
Cost Accounting Entrance Exam
ICWA arranges entrance exams for the three levels of its Cost Accounting course. The foundation course entrance exam is for school graduate students. And the intermediate and the final stages are successive.
Career Opportunities for Cost Accountant
There are a fair amount of opportunities in the market for an ICWA qualified Cost Accountant. Business organizations need Cost Accountant to get their finance and profit in one place. They collect, review, audit, adjust all the financial pieces of information of a firm.
Employment Sector/Industry for Cost Accountant
They are highly demanded in private companies as well as government firms. They are also placed in the banking and finance sector, education sector, various development agencies. As the worldwide economy is rising, the demand for Cost Accountant is increasing again.
Jobs In Cost Accountancy
- Cost Controller: A cost controller controls, analyses, and tracks the entire project's cost for large-scale companies.
- Chief Auditor: A chief auditor keeps the financial records of companies and reviews their accounts.
- Financial Consultant: It is client-based work. A financial consultant advises about saving taxes, investment, insurance, and helps his client achieve a financial goal.
- Chief Accountant: Chief Accountants have responsibilities regarding the financial transactions of a company.
- Financial Controller.
Salary of A Cost Accountant
A Cost Accountant with few years of experience can earn up to 4,20000 per annum where an experienced professional can earn around 6,20,000 per annum. But the salary hugely depends on job profiles. It also depends on the sector one is working in.
People over ten years of work experience earn nearly about nine lakhs rupees per annum.
Study Material to Become a Cost Accountant
- Cost and Management Accounting (for All India) by S.P Jain and K.L. Narang.
- Advanced Cost and Management Accounting-Problems and Solutions by V.K Saxena and C.D. Vashist.
- Advanced Management Accounting (Cost Management and Operations Research) by Dr. J.B. Gupta.
- Accounts Study Material, Law, and Audit by N.D. Kapoor.
- Students Guide to Accounting Standards (CA/ICWA Final Examinations) by D.S. Rawat.
Pros and Cons of Becoming a Cost Accountant
- One can get good and stable career growth in this profession.
- You will get a good salary and other advantages in this profession.
- The demand for Cost Accountants will never fade away. As long as things like tax will exist, people will need accountants to handle their money.
- This line of work is not very interesting as the job includes regularly working with numbers, doing calculations.
- Sometimes it can get very stressful and tiring to handle the work pressure.
- Long hours can make anyone frustrated.
FAQs about Cost Accountant
What are the leading recruiting companies in this field?
PricewaterhouseCoopers, Bain & Company, Deloitte, AT Kearney, Boston Consulting Group are some companies that recruit Cost Accountants.