It is no secret that accounting represents a highly technical field. The most successful accountants possess elite mathematical skills, plus competence with advanced software and other technological solutions. All this must be underscored by a thorough knowledge of relevant rules and regulations.
This is a lot to balance, but it’s only the beginning: Accountants cannot make the most of their technical skills unless they also possess a comprehensive set of soft skills. It takes years of concentrated effort to develop these abilities, so aspiring accountants (and especially future accounting leaders) must recognize the importance of accounting soft skills early on.
Do you envision a bright future in accounting? As you seek high-level academic training, be mindful of the many skills needed to be an accountant — both soft and technical. To help, we’ve provided a thorough guide to the most relevant soft skills for accountants, along with details on how a master’s degree can help you develop these competencies.
The Role of Soft Skills in Accountancy
Soft skills are beginning to receive the credit they’ve long deserved. A 2023 poll from the American Institute of Certified Public Accountants (AICPA) indicates that an astounding 99% of accounting firms cite soft skills as a central hiring consideration when seeking CPA candidates.
Speaking to the long-term value of soft skills, AICPA Vice President of Small Firms Carl Peterson explains, “Integrating firm experience with education focused on developing soft skills would result in staff retention and create higher value earlier in their career, while providing better client relationships and value to the firm.”
Understanding Core Accounting Skills
Soft skills must be developed and understood within the context of technical accounting abilities. These core accounting skills reference what accountants do, while soft skills determine how effective they are in completing these tasks. To that end, soft skill development within an accounting degree program is in support of these core competencies:
- Financial reporting – Accountants must be adept at the formalized process of financial reporting, providing in-depth insight into organizations’ financial activities and performance. These comprehensive reviews occur on a monthly, quarterly or annual basis and in many cases, form the basis of accountants’ day-to-day responsibilities.
- Auditing – Centered around the thorough evaluation and examination of financial statements, audits involve an orderly process to potentially uncover discrepancies. Accounting professionals are often tasked with conducting internal or external audits to ensure reporting integrity and regulatory compliance.
- Taxation – Some accountants spend much of their time preparing tax returns and providing tax-centered guidance to their clients. Tax accounting involves reviewing extensive tax documentation, navigating relevant tax or accounting software, and maintaining a thorough understanding of current tax laws.
- Financial analysis – Many accountants are responsible for examining business performance in the context of current industry trends and the overarching economic environment. By analyzing financial statements and other documents, accountants can help executives or clients make informed decisions.
Soft Skills Needed for Accounting
Soft skills take many forms but generally involve interpersonal abilities that allow accountants to handle complex problems and interact more effectively with team members or clients. Accounting technical competencies get a boost when accompanied by the following:
Communication Skills
Communication determines whether an accountant’s findings are properly conveyed, synthesized and understood. Accountants must communicate effectively through the written word, during one-on-one conversations and even via public speaking. Effective communication calls for a mastery of nuanced skills such as active listening and non-verbal communication.
Communication skills are integral to the process of financial reporting, which involves communicating financial information to stakeholders. Accountants must relay complex financial information to executives, team members or clients in a way they’ll understand, meaning they must determine how their message can be tailored to bridge any knowledge gaps. Communication supports or even amplifies the many additional soft skills that we’ll discuss below.
Attention to Detail
It would be an understatement to refer to accounting as a detail-oriented field. Every financial statement and tax return is jam-packed with details that must be observed and understood. That being said, attention to detail should not be confused with data analytics skills, which, while valuable, typically involve the more technical aspects of gathering and working with details.
In accounting, attention to detail may determine whether professionals notice and respond to discrepancies within financial reports or tax returns. It can also be a tool to facilitate stronger communication, as accountants interact more effectively when they observe and respond to the nuances of intonation or non-verbal communication.
Problem-Solving and Critical Thinking
Accounting is much more than mindless number-crunching. As new technologies take over repetitive tasks, accountants are increasingly freed up to focus on complex problems that call for an innovative mindset and exceptional critical thinking skills.
As critical thinkers, accountants must gather information from a variety of resources and apply an objective lens to these details. Critical thinking also means questioning assumptions and maintaining an open mind, as the best solutions to ongoing accountancy problems could be the least expected.
Developing these skills can be tricky, partially because different people have different concepts of what critical thinking involves. According to the Journal of Accountancy, it can mean different things in different scenarios, although a critical thinker can typically be expected to show these key traits:
- Using abstract ideas to help interpret relevant information
- Recognizing and even rethinking previously held assumptions
- Testing well-reasoned solutions against relevant criteria
- Committing to self-directed and self-corrective thinking
Time Management and Organization
Accountants juggle a variety of tasks throughout the day and must abide by strict deadlines even as their workload changes over time. Well-developed organizational skills can help accountants handle significant workloads with ease. The temptation to procrastinate can be strong, as can the potential for focusing too much on less-urgent matters or activities. As such, time management requires strong prioritization skills.
The most effective accountants manage their time by creating strategic workflows and processes, limiting the continual need to determine how to execute critical, yet repetitive, tasks. Many accountants also implement time management strategies such as the Pomodoro Technique, in which 25-minute sessions are followed by short breaks.
Adaptability and Flexibility
Accounting is a far more nuanced and innovation-oriented field than many recognize, and as new tools and technologies emerge, accountants must stay informed and prepared to upskill. The most adaptable accountants are also the most capable of embracing new opportunities, which can drive impressive improvements in productivity, efficiency, and communication.
Ethical Judgment
Ethical concerns abound in accounting, just as any practice that relates to financial reporting or analysis. Accountants receive access to a wealth of highly privileged and sensitive information that could place individuals and organizations at risk if mishandled.
The Generally Accepted Accounting Principles (GAAP) provide powerful guidance by establishing a common set of rules and requirements that all corporate accountants must follow. Similarly, the AICPA maintains a strong Code of Professional Conduct that encourages all accountants to consistently act with integrity.
Accountants should keep these standards front of mind while thinking critically to navigate ethically complex situations. The principle of utmost good faith is especially important: “Every person involved in the accounting process is acting honestly.”
Teamwork and Collaboration
Accounting is not — as common misconceptions may lead the public to believe — a solitary profession. Yes, many accountants run their own firms, and yes, introverts may be drawn to accounting, but collaboration always plays a critical role in this field.
In accounting, collaboration can take many forms: discussing financial concerns with clients, exchanging information within corporate accounting teams, or presenting findings to other departments (or even the C-suite). Without a team-oriented approach, accounting departments and firms risk data silos, limiting both productivity and innovation. A lack of teamwork can also lead to disengaged accountants.
Effective communication forms the basis of strong teamwork, but a collaborative mindset is also a must. Increasingly, accountants should also be able to navigate collaborative tools, which facilitate real-time communication and promote an increasingly interconnected work environment.
Leadership and Professionalism
Accountants should be capable leaders and consummate professionals. Although many work under the guidance of accounting managers or directors, they are often tasked with overseeing complex processes on their own. Many eventually move into senior roles that allow them to guide and support entry-level accountants. With a master’s degree, accounting management represents a viable career path.
Career coach Beverley Harvey highlights a variety of desirable leadership skills and qualities, including several of the soft skills identified above. In particular, she references these essentials:
- Ability to anticipate outcomes
- Visionary
- Persuasion
- Mentoring
- Mental toughness
Leadership also encompasses a commitment to continuous learning, as new techniques and technologies are always around the corner. Such innovations are not to be feared, as they promise to amplify many of the priorities highlighted above, such as communication, collaboration and critical thinking. Today’s accountants must be prepared to embrace these opportunities and encourage others to do the same.
Expand Your Skillset with a MAcc Degree at UTC
You are eager to make your mark in accounting, but first, you will need to master a variety of skills — both soft and technical. The right degree program can provide a powerful path forward.
UTC’s Master of Accountancy (MAcc) is an excellent option, delivering a deep dive into relevant technical skills as well as the opportunity to improve them alongside soft skills like critical thinking and collaboration.Are you ready to take the next step in your professional journey? Look to UTC for guidance as you embark on an exciting accountancy career path. Reach out or call (423) 425-5708 to discover the best opportunities through our MAcc program or get started with your application today.
