Foundational skills for young accountants

A career in accounting looks nothing like it did 10 years ago, and it’s still changing rapidly. That means young accountants need to develop a skill set that is much different from previous generations.

In the past, accountants focused on honing their technical skills within specialties like tax, audit and accounting to stand out. Now, as technology is increasingly incorporated into everyday processes and young professionals begin interacting with clients earlier in their careers, a host of other skills are needed. 

Experts agree accountants just starting their careers will need to develop their tech and soft skills, on top of a thorough knowledge of accounting fundamentals, in order to succeed.

Technology skills

Technology is one of the most powerful forces driving change in the profession.

Automation is already prevalent in the field; automating rote processes saves firms time and money by eliminating opportunities for human error. But it also provides accountants with large swaths of data to work with, making data mining, data analytics, data visualization and data security basic skills for young accountants. 

“It’s not computer-science-level tech,” said Rod Adams, talent acquisition and onboarding leader at PricewaterhouseCoopers. “We’re not asking our CPAs to be coders or things of that nature, but to be comfortable using technologies that allow them to wrangle data in a way that they can identify the insights quickly and then tell the story about those insights.”

Then there are newer technologies like generative AI that have seemingly every industry in a frenzy, with accounting being no exception. Firms are still experimenting with applications for the developing technology, but that doesn’t mean young accountants should sit idle. 

Accountants need to be able to leverage their professional expertise, understand these new technologies, and interpret the information using critical thinking and analysis, according to Deloitte chair Lara Abrash.

“A lot of people will speculate what artificial intelligence will do to society,” she said. “People who can do all three of those things will rise above the tide.”

Though young accountants can expect to be trained in their firm’s specific software, Abrash recommends students seek out tech classes on data analytics, quantum computing and AI. She also suggests students take humanities electives to hone critical thinking and interpretive skills. 

The good old-fashioned spreadsheet cannot be forgotten either. Spreadsheets are an accountant’s security blanket — and experts agree they won’t be going away anytime soon.

Communication skills

Because young accountants will start interacting with clients sooner than ever before (traditionally, accountants had to wait three to five years), it’s paramount to start developing storytelling, self-marketing, relatability, attentive listening and relationship-building skills early on. These skills go hand-in-hand with the growing advisory aspect of the job.

Understandably, it can be easy to overlook the importance of communication when the stereotype for accounting conjures images of people silently hunched over desks doing taxes. But that could not be further from reality, experts say.

Think back to April 2020 when the government rolled out the Paycheck Protection Program to small businesses at the start of the pandemic. “Who got the first phone call from clients? They’re trying to find out who is eligible? What is needed? How do they apply?” said Tracey Niemotko, professor of accounting at Marist College and a member of the Governing Council of the American Institute of CPAs. “The first phone call went to the CPAs.”

The importance of relationship building extends within firms, too. Accountants will have the opportunity to lead earlier in their careers, and good communication is a cornerstone of strong leadership.

“Historically, folks in the profession have been promoted because they were technically superior, and that can get you to a spot where you’re a manager,” said Lisa Simpson, vice president of firm services at the AICPA. “But being a really good tax accountant doesn’t make you a really good manager.”

“As you progress further up the career path, it is those technical and personal skills that you’re going to need,” Simpson added.

Sandra Wiley, president at Boomer Consulting, recommends accounting students pick a minor in sales, marketing, writing, change leadership and change management, or entrepreneurship — anything to help foster communication skills. 

“Your livelihood is going to depend on relationship-building,” Wiley said. “When you walk through the doors, this is a numbers business — but it’s a numbers business built on top of a relationship business.” 

Further solidifying the significance of this shift, even college accounting curricula are changing to keep up. In June 2021, the AICPA and the National Association of State Boards of Accountancy announced a sweeping change to the CPA exam as part of the CPA Evolution initiative. Starting this year, candidates must pass the three Core sections (auditing and attestation, financial accounting and reporting, and taxation and regulation) and one of three Discipline sections (business analysis and reporting, information systems and controls, and tax compliance and planning) of their choosing. 

“To change anything in academia is monumental,” Niemotko said.

If you are an early-career accountant with thoughts on this article or strategies for how you’re approaching your career, please reach out to me at paige.hagy@arizent.com.