ICMAI is the professional institute formed by the act of parliament. The institute has its headquarters in Calcutta. The president of ICMAI Ashwin G. Dalwadi, officially informed the change of the location of the headquarters. The Institute is in the process of shifting its headquarters to Delhi. The 349th meeting of ICMAI was held on 27, October, 2023. In the meeting, the resolution passed to change the location of headquarters. The decision was to come closer to the central government. The statement of the president was published in the journal of November. The blog shed light on the debate on the headquarters and the role of cost accountants in 2024.
Debate on the headquarters:
Ashwin Dalwadi said to the media that the move of headquarters from Kolkatta to Delhi marks a sign of getting closer to the central government. On 3, February, 2024, the institute gathered the opinion of the members through electronic voting. The institute wanted to check the emotional side of the members. Around 28 per cent of the votes are collected by the electronic form. The 93.8 per cent of the ballots support the shift. A group of members from the institute raised questions about the change.
Biswarup Basu is the former president of ICMAI. He commented on the shift as a failure of the institute in professional development. Further, Baasu mentioned that the professional development directorate of ICMAI is in Delhi. The institute could not work with the government and come closer. The words of Basu explains the reality. A group of members also wanted to know the approval of the government on the shift. The members wanted to know the approval of the government for the e-voting.
Cost accountants in special roles:
Cost accountants deal with financial data analysis, set standard product costs, implement cost-saving strategies, advise management, and prepare financial reports. Cost accountants get global recognition, credibility, higher salaries, increased job opportunities and professional development.
The general cost accountants types are financial cost accountants, internal auditors and managerial cost accountants. Financial cost accountants handle the finance tracking and reporting. They help with financial decision-making and Managerial cost accountants help with making managerial decisions. Internal auditors help in the internal system.
Cost accountants use the latest technologies on the job. The specialised-cost accountants are cost analysts, cost engineers and cost consultants. Cost analysts understand the inefficiencies and cost control strategies. Cost consultants help businesses develop efficient costing systems, implement strategies for cost-saving, and prepare cost-related financial reports. Cost engineers set the price of the products and negotiate the contracts of the business.
There are 14,048 vacancies for cost accountants in South India. Hospitals, Pharma companies, and MNC companies are looking for cost accountants. Cost accountants contribute to the success of multiple industries.
Government opportunities for cost accountants:
ICOAS is the government department, especially for cost and chartered accountants. The ICOAS operate 31 offices. The different subjects offered to the analysis of the cost and audit to the professionals are as follows: departments, ministries, revenue, economic affairs, commerce, defence, company affairs, chemicals and fertilizers, agriculture, industry, consumer affairs and PD, national pharmaceutical pricing authority. The cost accountants working in Indian cost accounts service advice to the state and central government. The cost accountants monitor the funds, control costs, reduce costs, and implement efficient techniques. The Indian cost accounts service comes under Group-A service. The professionals working in Indian cost accounts service are CA or CMA with a pass in the UPSC examination. The office is headed by the senior chief advisor of cost.
Role of cost accountants in 2024:
The cost accountant role in 2024 demands for the following responsibilities:
- Cost accountants generate PPV reports.
- Cost accountants classify costs under different heads.
- Review journal entries for inconsistencies.
- Review the general ledger and balance sheets.
- Submit the monthly and quarterly reports after checking with the management.
- Cost accountants suggest procedures and policies to increase the cash flow.
- Classify the different types of costs.
- Review the depreciation, overhead, labour and policy changes in the business.
- Establish and update the standard costs appropriately.
- Analyse raw materials and inventories. The cost accountant does the cost-benefit analysis and decides the vendors.
The hard and soft skills required for a cost accountant:
A cost accountant requires the following hard skills to handle financial and cost-related operations. The new syllabus and training prepare the cost accountant for the following skills.
- Enterprise resource planning: The ERP system incorporates cost analysis, inventory control cost strategies, creating reports, framing budgets, and forecasting the future.
- Data analysis: Data analysis helps the cost accountants to change the raw data into action plans and decisions.
- Microsoft Excel: Cost accountants use Excel for basic and advanced-level insights.
- Variance analysis: Variance analysis is for understanding the standard cost and actual cost.
- The following soft skills are essential for a cost accountant: problem-solving skills, communication, collaboration and organisation.
Conclusion:
In the manufacturing sector, the role of a cost accountant is a construction cost estimator, construction accountant, and project accountant. In the payroll sector, the cost accountant is a payroll specialist, payroll accountant, and payroll manager. Opportunities are increasing for the role of a cost accountant. The change of headquarters to Delhi is a sign of more focus towards the training, syllabus and opportunities for cost accountants. By focusing on professional finance education, the government create a healthy environment and growth in different sectors.