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Preparing invoices, payroll reports, cash flow reports, balance sheets, forecasting future incomes are some of the common duties of an accountant while filing taxes for a company. The first skill required for an accountant is that he or she should feel comfortable crunching numbers, irrespective of the tools in possession from a basic calculator to advanced ERP (Enterprise Resource Planning) software.
Presenting financial reports in an easy-to-understand manner while following Generally Accepted Accounting Principles (GAAP) / International Financial Reporting Standards (IFRS) requires training for which candidates enroll for professional courses including CA and CFA.
An accountant of today should adapt working under relevant accounting software like Intuit and Tally. Ability to use Excel worksheets is almost a must. According to payscale.com survey for accountants in India, experience strongly influences pay for this job and the skills that increase pay for this job the most is SAP FICO.
Expertise in data analytics, advanced modeling techniques, and SQL are rare to find in accounting professionals. According to a March 2016 joint report Building a Team to Capitalize on the Promise of Big Data by Robert Half and the Institute of Management Accountants (IMA), among technical skills what is missing the most are identifying key data trends (29 percent), data mining and extraction (28 percent), operational analysis (28 percent), technological acumen (27 percent), statistical modeling and data analysis (27 percent). Those who can integrate these into accounting models can bring a new perspective adding immense value to a business. Here is an excerpt of a cost accountant benefiting from taking a data science course by IIM Calcutta:
“I’m a cost accountant with twelve years of experience. I am getting knowledge in all area of data science. Syllabus is fully framed for data science and it is outstanding.”
Project Manager, Shriram Value Services Ltd.
On the above line, the course titled Quantitative Methods for Accounting by RMIT University aims to introduce statistical and quantitative techniques used by business managers to aid in decision-making. According to RMIT, “The focus of this course is the application of statistical and mathematical techniques to problems in accounting and finance.” While making use of Microsoft Excel for the analysis of problems, this course concentrates on the analysis and interpretation of results of statistical testing. It is claimed that this should help accountants use quantitative techniques to help them make better decisions, apply mathematical skills to real-life problems, undertake estimation and hypothesis testing using knowledge of probability theory and probability distributions, and analyze and interpret numerical and graphical outputs.
In the article The Top 7 Trends in Management Accounting by Gary Cokins it is mentioned that trend number 2 is about integration. The various components of EPM (Enterprise Project Management) are like gears in a machine – they are interconnected.
In the article ‘The no. 1 reason small business clients leave’ by Kali Geldis in AccountingToday, Sue Bosevich, vice president of support at Padgett Business Services is quoted as saying that citing increased costs is a commonly stated reason, but usually, when you get down to it, it’s the easiest excuse they can come up with. He observes, “Most often, clients leave because there is little correlation between the fee they’re paying and the service offered — they simply don’t understand the value they’re receiving. Bottom line: it has to be important to them and it’s your responsibility to show them that.”
According to the research report titled “Enterprise Performance Management: Not That Popular But Still Bloody Relevant” dated February 22, 2017, “As new technologies make their way into the enterprise world, a core fact remains: organizations still have basic business problems to solve, including budget and sales planning, and financial consolidation and reporting.” The author of this report Jorge Garcia points that financial reporting, performance monitoring, and strategic planning are still crucial for any business when it comes to improving its performance and operational efficiency.
Trend no. 1 in the opinion of the article Top 7 Trends in Management Accounting by Gary Cokins is management accounting must help the sales and marketing functions. A company needs to know the best types of customers to retain, grow, win back, and acquire – and those who aren’t. Soft skills while communicating with customers, colleagues, and other stakeholders are important throughout. This is more so for independent accountants and auditors who need to do their own sales and marketing as well. For them, advice by Howard M. Rosen, CPA, in the article The no. 1 reason small business clients leave is small business clients are looking for value and the best way to make a client loyal to you is to expand your services beyond just the one thing that client may come in looking for. Rosen believes that the more services you provide the more loyal the client becomes. Once you are providing three or more services it is very difficult for a client to leave.
It is advised to do more than just generating tax returns or financial statements, take on a role of business advisor and not just tax professional. In this context, courses such as Certified Financial Planner should help take in-charge of financial planning aspect of your client as well while providing accounting-related services and make a seamless combination.
Gerri Detweiler, head of market education for Nav, observes that demand for more knowledge around how to help clients manage and build their business credit is huge, understanding business credit and financing is often complicated and time-consuming, and accounting professionals are hungry for information on how to make that process easier. In the same article by Kali Geldis, Sue Bosevich is quoted as saying, “There is software that helps to manage client work internally and to ensure that deadlines are not missed.” He stresses on using apps like Skype for a face-to-face meeting with clients.
As part of tax reforms, GST or goods and services tax is implemented in India starting July 2017 changing the way how taxes are levied and existing accountants need to brush up their know-how on GST to stay relevant with the changing times.