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How to Improve Your Accounting Skills
You can become better with numbers and improve your ability to maintain your financial health.
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Whether you do your business bookkeeping and accounting yourself, or you have skilled accountants and bookkeepers working for your business, improving and updating accounting skills has never been more important.
No one is ever done enhancing their accounting skills. There is always more to learn, changes to keep up with and ways to become more efficient. Quality accounting skills are crucial to maintaining the financial health of your business or advancing your career.
How to improve your accounting skills
You can improve general or specific accounting skills in a number of ways:
Take an introductory class online.
Learn the basics of accounting (or refresh your knowledge) by taking an introductory accounting course. You can find courses like this at online universities, such as Harvard Business School Online or the University of Phoenix. Such classes are also offered on online learning platforms like Udemy and Coursera. You may even find courses at a local community college.
Dive into a specific accounting topic.
For those who are already accountants or have a good understanding of the basics, it might be helpful to learn more about a specific topic. For example, you may want to take a course in accounting for decision-making to help you use financial statements to inform strategic decisions.
You don’t always need to take an entire course on a topic of interest; you could read a book or view a webinar. This can help you broaden your knowledge and learn how to apply it to accomplish certain objectives without devoting as much time as a course would require.
Enhance your soft skills.
To be a truly effective accountant, soft skills such as communication, time management and problem-solving are a must. Your human resources department may give training classes in these types of skills or be able to guide you to other resources. Business coaches can help in this area and there are also online courses and books on soft skills development.
Keep your knowledge of accounting standards up to date.
If you took accounting courses in college, you know about generally accepted accounting principles. These principles, however, may have been updated since you originally learned them. To keep up to date, professional accountants can participate in continuing education through industry organizations such as the Institute of Internal Auditors, the Corporate Finance Institute, Financial Executives International and the National Association of Black Accountants. Organizations like Thomson Reuters also offer online courses, webinars, seminars and conferences.
Learn how to get the most from accounting software.
Whether you want to unlock all of the functionality of your existing accounting software or are interested in upgrading, learning accounting software capabilities can make your job easier. Use your existing software program’s built-in tutorials or watch videos posted by the software company on its website or YouTube. If exploring new accounting software, contact the sales team and ask for a demonstration. Be sure to ask about any training that they can provide new clients.
Get accounting questions answered.
No matter how long you have been doing accounting, new situations and challenges always come up. While a colleague or your supervisor can answer any questions you have, it’s also important to develop networking and mentorship contacts. “Join professional groups or online forums to exchange ideas, stay informed about industry trends and receive guidance from experienced accountants,” advised Gary Jain, CEO, Ledger Labs. [Learn how to network on LinkedIn]
Learn more about the industry.
It can be helpful to know more about the industry you work in. Talk to executives in different departments or related businesses to get a fuller understanding of the industry and forces that impact it. Trade magazines and online sites may also have useful information. Having knowledge about the market, demand trends, vendors, regulations and marketing initiatives that impact the company offers a big picture so you can make strategic recommendations that will benefit the company.
What are the top skills of a great accountant?
Modern accounting requires much more than crunching numbers and balancing ledgers. Accountants have the difficult job of balancing technical hard skills with interpersonal soft skills to help their businesses grow. These are the hard and soft skills you need to do a great job of accounting for your business or to look for when hiring an accountant.
What are hard skills in accounting?
Hard skills in accounting are specific and measurable; they can be learned in college, professional courses and books. [If you’re looking for help with your accounting tasks, check out our reviews of the best accounting software for businesses.]
These hard skills for accountants are indispensable:
- Understanding accounting principles: Basic principles of the double-entry accounting system and how it is used to keep accurate records is the basis of an accountant’s education. All accounting procedures are built on this foundation. If you or your accounting team do not already have a solid grasp of accounting principles, this is the place to start.
- Financial analysis proficiency: Good recordkeeping is just the beginning. To get the most from financial information, you must know how to analyze it. Financial analysis skills allow you to interpret financial data, identify trends and make better business decisions.
- Mathematical competency: Software can crunch the numbers, but someone must understand mathematics well enough to tell the software what to do, decide what data to enter and notice when something seems not quite right. Basic math ability is essential to performing accounting tasks.
- Industry knowledge: You and your team must maintain a broad range of field-specific knowledge.
- Ability to use software and technology: For example, you and your team may need more advanced skills and expertise in the following types of software:
- Microsoft Office Excel or other top spreadsheet software
- Microsoft Visual Basic
- QuickBooks
- Data analytics
- Business intelligence software
- Risk and compliance
- Enterprise resource planning (ERP) software
- Cloud-based accounting
- Payroll software
No accountant can be an expert in every financial field. You can use your time wisely by focusing on certain areas of expertise. Look for specific skills and knowledge that will help you and your accounting team manage and grow your business.
What are soft skills in accounting?
Soft skills are less tangible and more difficult to measure than hard skills. While they are usually learned through experience, soft skills can also be developed. Here are the top soft skills every accountant needs:
- Communication: Today’s accounting and finance professionals aren’t just expected to crunch numbers; they need the ability to tell the story behind the numbers in an interesting, easily understandable manner. This is especially true when communicating with colleagues or clients who are unfamiliar with accounting terms. Jain said strong communication is critical and suggested training in negotiation, conflict resolution or public speaking to increase expertise. On top of excellent verbal communication skills, accountants must also have strong business writing skills to compose concise and accurate emails, reports and documents.
- Organization: Accountants must be highly organized to manage multiple accounts and clients, meet company deadlines and follow proper guidelines. Accountants deal with a significant amount of paperwork, and a disorganized individual may find it difficult to file sensitive documents correctly or on time.
- Time management: Most business owners and accountants work on multiple projects at once, which means their time management and multitasking skills must be exceptional. Furthermore, time management is crucial during tax season and at other deadlines, when accountants must go above and beyond to meet their companies’ and clients’ needs.
- Problem-solving: Every organization encounters process issues, financial discrepancies or personnel problems that must be solved. Great accountants have critical thinking and problem-solving skills to address complex issues.
- Flexibility: Accountants today must be able to adapt to the many changes guaranteed to occur in any organization. As technology and practices evolve, you or your accounting team must be prepared to learn and master the changes almost immediately. Accountants are also expected to stay abreast of in-house changes, such as new platforms and fluctuations in project workloads, in addition to those resulting from new rules and laws.
What are specialized skills in accounting?
Specialized skills are specific fields of expertise within your industry. Here are some examples of additional specialized accounting skills you may need, depending on your industry and business:
- Forensic accounting: This is a specialized field in which accountants uncover fraud, financial irregularities and discrepancies.
- Tax preparation: A tax professional plays a vital part in helping you optimize your tax situation and avoid problems with federal and state tax authorities.
- International Accounting Standards: If your business is multinational, you and your accounting team must be familiar with international accounting standards and know how to adhere to them.
Accounting literacy is critical to the success of your business
The quality of your recordkeeping, and the extent to which you use the information from your books to make good decisions, can be the difference between success and failure for your business. You should have a level of financial and accounting literacy, even if you pay bookkeepers and accountants in your business. “While we don’t recommend that business owners do their own bookkeeping, we highly advocate for financial literacy,” said Gretchen Roberts, CEO at Red Bike Advisors. “When you know your numbers, you can make better business decisions.”
Business owners should review their financial reports monthly, comparing recent performance with previous months, advised Roberts, and then that information should be used to increase revenue, gross margins and net profit. Lastly, Roberts offered, they should learn to use accounting information to perform predictive analytics and forecast revenue, cash flow and growth.
Sally Herigstad and Sean Peek contributed to this article.
