With the changing nature of the accounting profession, most accountants would agree that developing strong soft skills beyond technical expertise is critical for career success.
This article will provide an overview of the must-have soft skills for accountants along with actionable tips on how to develop areas like communication, critical thinking, and relationship building.
You'll learn why skills like emotional intelligence and adaptability are becoming so vital for accountants. Plus, get best practices for improving soft skills through on-the-job training, formal programs, mentoring, and self-assessments.
The Importance of Soft Skills for Accountants
Changing Nature of the Accounting Profession
The role of accountants has shifted from number crunching to more advisory and strategic functions. With automation and AI handling routine bookkeeping and compliance tasks, accountants now focus on providing insights and recommendations to help businesses make better financial decisions. This requires strong communication skills to clearly explain complex issues to non-finance colleagues. Accountants also need people skills to build relationships, earn trust, and influence business strategy. Technical expertise is no longer enough - soft skills differentiate those shaping business success.
Expectations from Employers
Beyond mastery of accounting standards and tax codes, employers today want candidates with emotional intelligence, critical thinking, and leadership abilities. With flatter organizational structures, even entry-level accountants interact directly with executives and need diplomacy to navigate politics. Firms expect professionals to represent them effectively when liaising with clients and partners. With remote and hybrid work models, communication and collaboration skills are vital. Those lacking self-motivation and ownership struggle when not micromanaged on-site. The ability to coach and mentor junior staff also grows in importance.
Staying Competitive in the Job Market
While accounting credentials signal technical competence, soft skills reveal relationship-building potential. With similar qualifications, those better at influencing and driving change fill higher-value roles. Early career accountants investing to develop soft skills through formal training or volunteer team leadership stand out. This shows ambition beyond task execution. With automation threatening many routine accounting jobs, cultivating versatility is key. Those combining left-brain logic with right-brain creativity and emotional engagement will remain irreplaceable. Accountants must continue acquiring technical knowledge while sharpening soft skills to stay employable. The future belongs to well-rounded finance talent.
What is the soft skill for accountant?
Effective communication ranks among the most crucial soft skills in accounting. Accountants must articulate complex financial information to various stakeholders, including colleagues, clients, and executives.
Here are some key soft skills that are essential for accountants:
Communication Skills
- Clearly explain financial reports, analysis, and recommendations to non-financial colleagues and executives
- Listen actively to understand client needs and issues
- Write emails, reports, and documentation clearly and concisely
- Present data effectively through charts, graphs, and presentations
Critical Thinking
- Analyze large amounts of financial data to spot trends, inconsistencies, and potential issues
- Assess processes to identify opportunities for improvement
- Evaluate business performance and provide strategic recommendations
Attention to Detail
- Detect and correct errors in financial documents and reports
- Ensure accuracy and completeness in all work
- Comply with accounting standards, regulations, and protocols
Developing expertise in these areas can elevate an accountant's impact within an organization. While technical skills are crucial, soft skills empower accountants to apply financial insights to drive better decision making.
What are the 4 skills necessary to become a CPA?
To become a successful CPA, professionals need to develop expertise beyond technical accounting skills. Here are 4 key areas CPAs should focus on:
1. Ethical Decision-Making
As stewards of financial data, CPAs must uphold the highest ethical standards. Skills like analyzing complex situations objectively and determining the right course of action are critical. Ongoing training in ethics and compliance helps CPAs make sound judgements.
2. Leadership and Communication
CPAs increasingly serve in advisory and management roles. Soft skills like providing clear direction, motivating teams, resolving conflicts diplomatically, and liaising between departments are invaluable. CPAs must also communicate complex financial information clearly to non-accounting stakeholders.
3. Data Storytelling and Technology
In the digital age, CPAs need to translate raw data into insightful narratives that guide strategy. Using data visualization, analytics, and platforms like Power BI to spot patterns and communicate meaningfully is key. Staying updated on technologies that impact financial reporting is also important.
4. Business Acumen
Finally, a solid grasp of how businesses function is vital context for accounting work. Understanding operations, industry trends, competitive forces, and overall corporate objectives allows CPAs to provide better recommendations and support management in strategic decision making.
By building expertise in these 4 areas in addition to technical competencies, aspiring CPAs can augment their skills and become well-rounded senior advisors.
What skills do accountants lack?
Many accountants excel at the technical aspects of their jobs, such as preparing financial statements, analyzing data, and ensuring compliance with regulations. However, some lack proficiency in "soft skills" that are equally important for success.
The key soft skills that accountants often need to develop further include:
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Communication: Accountants need to clearly convey complex financial information to clients and team members who may not have financial backgrounds. This requires using plain language, analogies, visuals, and patience.
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Critical thinking: As trusted advisors to their clients, accountants must be able to analyze problems, weigh alternatives, and provide recommendations, not just report numbers. This demands sharp critical thinking abilities.
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Time management: Accountants juggle multiple client accounts and projects with tight deadlines. Strong time management skills and the ability to prioritize urgently important tasks are essential.
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Teamwork: Much of an accountant's work involves collaboration with others in their department or cross-functional project teams. Being a team player and knowing how to work effectively with different personalities makes a big difference.
While technical skills can be taught, soft skills require deliberate effort to develop over time. Accountants who invest in improving their communication, critical thinking, time management, and teamwork capabilities can take their careers to new heights. These skills ultimately allow them to build trust with clients, handle complex assignments, and demonstrate leadership qualities.
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What are the three categories of skills needed by accountants?
Accountants need to develop skills in three key areas to be effective in their roles:
Technical Skills
These include expertise in areas like financial reporting, budgeting, tax preparation, auditing, and financial analysis. Certified Public Accountants (CPAs) need strong technical skills to properly prepare financial statements, tax forms, and other legally required documentation for their clients. These skills require great attention to detail, analytical ability, and an in-depth understanding of accounting regulations and standards.
Communication Skills
Accountants must be able to clearly explain complex financial information to clients, executives, investors and other stakeholders. Written and verbal communication skills are essential for presenting reports, financial statements, tax implications and recommendations in an easy-to-understand way. Accountants also need strong listening skills to understand client needs and issues.
Strategic Thinking
In addition to number-crunching, accountants are increasingly being viewed as strategic advisors to guide financial decisions and enable growth. This requires creative problem-solving, understanding industry trends, and analyzing how different strategies impact the bottom line. Accountants with sharp critical thinking and business acumen are better equipped to provide recommendations aligned with organizational objectives.
Developing expertise across technical, communication and strategic skills allows accountants to progress in their careers and provide greater value as financial partners. While the numbers are still important, soft skills differentiate those who simply report data from strategic advisors who drive smarter financial decisions.
Must-Have Soft Skills for Accountants
Accounting is often viewed as a technical field focused solely on numbers, calculations, and spreadsheets. However, soft skills are becoming increasingly vital for accountants to advance their careers and provide value in today's workplace. Though hard skills open doors, soft skills allow accounting professionals to thrive once inside.
Communication and Presentation Abilities
With the rise of data analytics, accountants must now interpret complex financial reports and communicate insights effectively to diverse audiences within an organization. Key skills include:
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Presenting data visually: Using charts, graphs, and dashboards to translate numbers into visual stories and actionable takeaways that resonate with non-financial departments and leadership.
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Public speaking: Confidently delivering presentations to senior executives and stakeholders clearly and concisely. Tailoring messaging and style for different audiences.
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Writing: Crafting emails, reports, and documentation with clarity and purpose for different recipients. Condensing technical details for simpler consumption.
Critical Thinking and Problem Solving
Beyond number crunching, accountants must leverage sound judgement to analyze ambiguous situations and provide viable solutions to real-world financial issues. Key skills include:
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Risk assessment: Identifying the risks and benefits of financial decisions, investments, contracts, mergers and acquisitions, and other complex transactions.
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Strategic thinking: Understanding the bigger picture goals and evaluating how financial options impact long-term success. Adapting to changing conditions quickly.
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Innovative solutions: Tapping creative thinking to provide recommendations beyond traditional accounting, helping to improve processes and capitalize on new opportunities.
Teamwork and Relationship Building
Unlike the lone number cruncher in the back room, today’s accountants collaborate cross-functionally across all business units. Key skills include:
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Partnerships: Cultivating connections beyond the finance team to become a trusted advisor for all departments. Building rapport and credibility with stakeholders.
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Collaboration: Working jointly with peers and managers to complete projects, solve problems, improve processes, and contribute to key decisions as a team.
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Mentorship: Guiding and training entry-level accountants. Sharing institutional knowledge.
By mastering must-have soft skills like communication, critical thinking, and collaboration, today’s accountants can evolve from number crunchers to strategic partners that create even more value.
Developing Soft Skills: Tips and Best Practices
Developing strong soft skills can elevate an accountant's career to new heights. While technical prowess with numbers and financial statements is essential, soft skills enable accountants to apply their expertise effectively and advance into leadership roles. This section outlines actionable tips for improving key soft skills on the job and through targeted training.
On-the-Job Training Opportunities
Every client interaction and workplace scenario offers soft skills development opportunities. Seek out stretch assignments and cross-departmental projects to build communication, collaboration, and problem-solving abilities.
- Request client-facing roles during audits and financial reviews to practice presenting data, explaining complex issues, and building rapport
- Volunteer for cross-functional teams on process improvement, system implementations, or new product launches to enhance stakeholder engagement and change management skills
- Observe negotiators and salespeople in action to learn persuasive communication and conflict resolution techniques
Apply learnings in real-time and solicit feedback from colleagues and managers on areas needing improvement.
Formal Training Programs
Enroll in soft skills bootcamps, seminars, and workshops offered by accounting associations and professional development firms. Popular options include:
- Public speaking courses - Focus on style, body language, vocal variety, audience engagement, and visual aid best practices
- Emotional intelligence (EQ) training - Build self-awareness, empathy, and insight into motivating behaviors
- Cross-cultural programs - Develop cultural sensitivity and global business etiquette for multinational engagements
- Negotiation simulations - Practice win-win negotiation tactics through role-playing with experienced instructors
Apply learnings back on the job and notice increased confidence and competence over time.
Finding a Mentor
Learning from a senior accounting leader is an impactful way to absorb soft skills. Seek an experienced mentor open to sharing their expertise.
- Identify gaps in your skillset and find a mentor who excels in those areas
- Schedule monthly 1:1 meetings to discuss challenges, ask advice, and set development goals
- Request feedback on your performance in meetings, presentations, and management scenarios
- Observe your mentor interacting with clients and colleagues and take note of effective soft skills techniques
An invested mentor provides the experience, guidance, and motivation needed to level up soft skills.
Mastering soft skills is a long game that pays continuous dividends over an accounting career. Commit to daily focus areas and ongoing formal training to see big changes over time. Soft skills combined with financial acumen can unlock a world of career opportunities.
Addressing Weak Areas through Self-Assessment
Self-assessment can be a valuable tool for accountants looking to identify areas where they can improve their soft skills. By proactively seeking feedback and evaluating their own abilities, accountants can gain meaningful insights into their developmental needs.
Online Self-Assessments
Taking online quizzes and assessments focused on soft skills can help reveal blindspots. These tests often incorporate scenario-based questions and self-evaluation components across key areas like communication, collaboration, critical thinking, and more. The quantified results can show where accountants have room to grow in terms of interpersonal and cognitive capabilities. Useful, validated tests are available from reputable sources like universities and professional associations.
360-degree Feedback
360-degree feedback provides well-rounded input on soft skill levels by collecting confidential observations from managers, peers, direct reports, and even clients. By averaging multiple perspectives from those who directly interact with the accountant, this feedback highlights strengths and deficiencies. The customizable process lets accountants specify which soft skill competencies they want evaluated. Comparing self-perceptions to stakeholder observations allows accountants to pinpoint gaps between how they see themselves versus how others experience their abilities.
Developing an Action Plan
The self-assessments and feedback can inform a targeted action plan for strengthening soft skills. Accountants can set specific, measurable goals with timelines based on the skills requiring development. For example, if communication is lacking, they may commit to being more concise in meetings or sending weekly progress reports. Or if critical thinking needs work, they can dedicate time to analyzing problems from multiple angles before presenting solutions. Accountants can also outline the training programs, books, videos, mentors, and other resources needed to systematically build these capabilities over time. Reviewing progress and refining the plan quarterly will help to ingrain productive soft skills.
Conclusion and Key Takeaways
Soft skills enable accountants to evolve beyond number crunching to provide meaningful insights that drive organizational success. By developing strengths in communication, collaboration, critical thinking, and emotional intelligence, accountants become trusted advisors who can clearly convey strategic recommendations.
Continuous improvement of soft skills is crucial, as this is an ongoing journey requiring habitual self-reflection and a growth mindset. Accountants should regularly seek feedback and participate in training to enhance these capabilities over time.
Simple starting points to begin working on soft skills include:
- Seeking a mentor to provide guidance on areas needing development
- Joining a professional association like the AICPA that offers soft skills training
- Practicing public speaking through local Toastmasters meetings
- Reading bestselling books like How to Win Friends and Influence People
Prioritizing soft skills will empower accountants to maximize their career potential and strategic business impact. The time to start is now.
