critical thinking skills for accountants

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Top soft skills for accounting professionals

Soft skills are key to career advancement. one cpa at the forefront of recruitment and professional development shares tips for boosting these critical skills..

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As professionals advance in an accounting or finance career, soft skills become increasingly important. In a world that is becoming more digital, computerized, and automated, soft skills can be the differentiator between two employees competing for the same promotion or position.

In fact, in a recent survey reported by the Society for Human Resource Management, 97% of employers stated soft skills were either as important or more important than hard skills. Whether a professional is looking for a new job or seeking a promotion, focusing on and developing soft skills can help employees be more well-rounded and employable professionals.

What I am seeing, for my own team and firmwide working with hiring companies, is the importance placed on various soft skills for accounting and finance professionals, which can help take the company's work to the next level.

For professionals looking to improve their work and their employability, the four soft skills listed below are most prominent.

Time management

Time management is an essential skill for any accounting professional because of not only how deadline-focused the profession is, but also because of the time management discipline required by the large-scale shift to remote work. It can be challenging to avoid procrastination, and it is easier to get off track when working virtually.

Because of accounting's cyclical nature, employees have ample opportunities to hone time management skills. Most significant projects and deliverables will happen at the same time of year, depending on the organization. Here are a few tips I have found to help develop time management skills and stay organized.

Start with leveraging calendars and tasks. Using the organization's digital tools can help move projects along and keep them organized. For example, if working within a team setting, use a shared spreadsheet with colleagues to track each person's responsibilities for month-end close or whatever project the team has prioritized. For sole practitioners, diligently using a calendar can help with keeping on task and meeting deadlines.

Another way to develop time management skills is by talking to managers and colleagues. Ask how they keep their tasks aligned. They might be planning their days in a way that can work with other projects and tasks. CPAs who demonstrate good time management have a leg up both for new employment opportunities and for promotions within their organization.

Critical thinking

Various hiring managers we work with often request that candidates have "strong critical-thinking skills," but what does that mean for the accounting and finance profession? Critical thinking — analyzing problems and finding the causes and solutions to those problems — is a major facet of the accounting profession.

Organizations are constantly facing new financial challenges. Most recently, COVID-19 created a range of challenges for accounting and finance teams to solve. Reallocating funds and cash management, managing payroll changes, reacting to new legal changes to internal reporting practices, and other changes required employees to think critically and creatively to meet organizational needs.

While COVID-19 was unexpected, there are other challenges accounting teams can plan for. What we are seeing most employers ask for is accounting and finance professionals who not only look at the problems of the past and find solutions, but who also can predict problems before they occur. From first glance to final analysis, accounting professionals should look at all the information they have and be able to communicate why something happened and what can be done in the future to plan or account for it.

When working to develop critical thinking skills, I've found it extremely important to first question how and why processes are done the way they are and ask how they can be done better. This "professional skepticism" and general curiosity can help ensure accuracy across all tasks. Professional skepticism will make it easier to ask the right questions and find the "why" instead of just trusting information at face value.

Leveraging other successful accounting professionals' advice can hone critical thinking skills and make any accounting professional a stronger asset to their organization. Webinars, conferences, and networking with other accounting professionals can give insight into what other organizations are doing and offer vendor recommendations, process improvements, and more.

Our recruiters regularly see communication as a top skill for accounting and finance talent. Nearly every function of an organization interacts with the accounting and finance teams. Therefore, professionals need to have exceptional communication skills, both written and verbal. Important projects need to be communicated in an easy-to-understand way to executives and colleagues (especially if they are unfamiliar with accounting or finance terminology) to ensure proper completion.

If accounting and finance professionals have poor communication skills, making clear points, sharing their reports and creating action items from the findings can be difficult. 

When working to develop strong communication skills, reach out to a manager for feedback. Have them review emails, reports, and other communication before sending out or sharing.

Ask them if the communication gets the point across and if they believe the end user will understand the report or the solution being communicated. It's important to recognize who your audience is and the best way to present the information.

Avoid using too much jargon and ensure that anyone can understand the information, not just accounting professionals. Along with asking a manager for help, do a self-review of any communication. For written work, read it out loud to catch errors. Hearing versus reading something has a different impact. For oral communication, practice in advance so that the meeting's goal or call is adequately communicated.

Collaboration

Collaboration with teammates and other employees is paramount for accounting professionals. Since accounting and finance teams touch every area of the business, they are expected to work cross-functionally and collaborate well with other employees. Projects that involve other employees — like budgets, cash flow projections, or strategic planning — can be complicated and require a high degree of collaboration.

While entry-level accountants might not lead these projects with other company leaders, they will eventually be expected to meet with teams across the organization, so developing this skill now is crucial for continued growth. Even for sole practitioners who work relatively independently, collaboration is absolutely key while working with clients and any other stakeholders in various projects.

One way I've found helpful in practicing to become a stronger collaborator is spending time before a meeting writing down questions and thoughts to bring to the conversation. Make speaking up in meetings and calls a regular habit, and eventually, it'll become muscle memory. Preparing questions and engaging with the topic will encourage other team members to do the same and create more dialogue and collaboration in the discussions.

— Ryan Chabus , CPA, MBA, is the controller at LaSalle Network, a staffing, recruiting, and culture firm based in the US. To comment on this article or to suggest an idea for another article, contact Drew Adamek, a JofA senior editor, at [email protected] .

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The Accounting Skills You Need For A Successful Career

Expert Reviewed

Updated: Mar 5, 2024, 3:07pm

The skills needed to become an accountant may not be what you think. Yes, spreadsheets are vital, as is knowledge of Excel functions. But you need more than that if you want to stand out among the competition and get an accounting job—soft skills like communication and organization are critical as well.

Accountants enjoy steady demand, and this evolving field is only becoming more competitive to enter. Read on to learn the top accounting skills you’ll need to succeed in this field.

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Top Technical Skills for an Accountant

Employers look for accounting candidates who can help them advance their businesses and meet their clients’ needs. As a prospective accountant, you must demonstrate proficiency in basic technical accounting skills.

Every accountant, auditor and financial analyst should stay up to date with current best practices in the field. To go the extra mile, consider reading up on emerging trends, such as how cloud computing and blockchain technologies affect accounting.

Using Accounting Software

Knowing the ins and outs of accounting and office software such as QuickBooks, Excel and Google Workspace is crucial to your future as an accountant. Technological advances continue to bring changes to the accounting field. As your career advances and you seek positions of greater responsibility, you may wish to get familiar with process automation, artificial intelligence and financial modeling software.

Each accounting firm and organization has its own software preferences as well. How do you know which ones to learn? Here’s an expert tip:

Preparing and Reporting on Financial Statements

Financial statements are the bread and butter of accounting firms and business operations. Knowledge of how to prepare and report on financial statements is critical to becoming an accountant. An accountant’s everyday responsibilities include creating, tracking and reporting on balance sheets, income statements and cash flow statements.

To prepare a financial statement, you must be comfortable gathering, verifying and classifying financial data. Reporting on financial statements requires its own set of skills. The best financial reports communicate complex data in a way that is understandable to all stakeholders. These reports can then be used to evaluate clients’ financial health and vulnerabilities.

Knowledge of Spreadsheet Software.

Excel continues to be one of the most valuable tools for accountants to know. Before you pursue an accounting career, you should understand how to use Excel to organize and manipulate data.

If you don’t know your way around an Excel spreadsheet, take some time to practice. You might even take an online course to ensure you’re at the top of your game before applying for accounting jobs or a graduate program.

Top Soft Skills for an Accountant

Anyone can learn the technical skills required to become a successful accountant. What’s more difficult to teach, however, are the soft skills. Forging strong working relationships with your colleagues, peers and clients is as important as your ability to perform complex financial analyses.

Soft skills also set you apart from other applicants in the accounting job market.

Communication

Effective communication is essential to all business roles, accountants included. The stereotypical idea of an accountant may bring to mind a person who’s glued to a computer screen full of datasets, but in reality, the job involves much more than that.

Accountants spend time in meetings with clients, stakeholders and fellow employees. They often need to communicate financial updates. You may also find accountants collaborating with each other, particularly in larger firms and businesses with more involved accounting needs.

Expert communication skills are essential to advance in your accounting career. Accounting managers spend most of their time communicating with direct reports, controllers, finance directors and colleagues from other departments who may be less familiar with accounting terms.

Oral communication is important in accounting, but don’t neglect your writing skills. As CPA Logan Allec notes, “Written documentation/communication provides a paper trail and is often requested by clients and bosses alike.”

Along with preparing this documentation, accountants must communicate with coworkers and clients in writing via email and workplace communication tools such as Slack. Allec adds,

Time Management and Organization

Careful organization and effective time management are two soft skills needed to become an accountant. During the early part of the year, known as “tax season,” the volume of work for accountants increases. As you juggle various spreadsheets, clients and reports, you must keep track of your time and remain aware of strict deadlines to file taxes and reports.

In the accounting world, there are consequences for not filing on time or preparing accurate financial statements. It’s vital to maintain self-awareness and discipline to stay on top of your tasks.

Critical Thinking

Accounting skills go beyond sorting through numbers and relying on automated processes to create financial statements. To succeed as an accountant, you need strong critical thinking skills. Ethical dilemmas, reporting errors and unbalanced spreadsheets require careful thought and investigation to arrive at the best solutions. Accountants must take an active approach to each task to make predictions and assess risk.

Problem-Solving

Technological advances do not negate the need for accountants to predict trends and make financial forecasts. Problem-solving remains one of the top required skills for accountants.

Remember, employers aren’t looking for robots who can spout off a string of numbers or only analyze data. Rather, they are seeking creative problem-solvers who can help meet their needs and identify innovative ways to move their organization forward.

Strong Attention to Detail

As a highly regulated field, accounting necessitates strong attention to detail. There is little margin for error when you’re responsible for someone else’s finances.

Accountants must follow Generally Accepted Accounting Principles and stay aware of industry-specific rules, regulations and deadlines. A keen eye for irregularities and errors is an essential skill for accountants.

How To Develop the Right Skills To Become an Accountant

Take inventory of your strengths and any gaps in your accounting skill set. It’s a good idea to highlight the areas in which you need to deepen your knowledge or abilities. There are ample accounting courses and learning opportunities available both online and in person at local community colleges or training centers.

Developing soft skills takes time and patience. Practice by incorporating them into your daily routines, such as by using a task management app for better organization. You can also reach out to potential mentors in your field to work on your communication skills and learn about the latest trends in accounting. Removing distractions from your workspace can also help you improve your focus and attention to detail.

Frequently Asked Questions (FAQs) About Skills for Accounting Careers

What skills do accounting firms look for.

When it comes to hiring, accounting firms look for a mix of hard and soft skills. Job applicants should be familiar with spreadsheets and standard accounting software. They should also have a strong understanding of Generally Accepted Accounting Principles and basic industry practices such as the double-entry system. Firms also want to hire accountants with nontechnical skills like communication, time management and attention to detail.

How do you know if accounting is for you?

As with any career path, consider your strengths, goals and interests. Accounting tends to suit organized, methodical individuals with strong analytical and communication skills. It also helps to have an interest in mathematics, including algebra and statistics, but you don’t necessarily need deep mathematical knowledge beyond lower-level college math courses.

Is accounting a good career path?

Many professionals in the field would say yes. If you like numbers and have a detail-oriented outlook, accounting can provide a satisfying career with a comfortable salary and strong job security. The U.S. Bureau of Labor Statistics reports a 2022 median salary of $78,000 for accountants and auditors. As fewer students graduate with accounting degrees, a looming nationwide accountant shortage may create a favorable hiring climate for accounting professionals.

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How to develop critical thinking skills in finance & accounting

Stephen Moir

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When it comes to finance and accounting roles, employers are increasingly looking for problem solvers, not a number-crunchers. Over recent years, we have seen an increasing demand for people who can analyse and interpret data and think critically.

What is critical thinking.

A critical thinker is a problem solver. They are able to evaluate complex situations, weigh-up different options and reach logical (and often quite creative) conclusions.

Critical thinkers are highly-valued by employers as they innovate and make improvements, without taking unnecessary risks. Chartered Accountants Australia and New Zealand recently identified that it was in the top 10 attributes that will help you get noticed in the job market.

Why are critical thinking skills important?

Once you have learnt how to develop critical thinking skills you will be better able to add value to data, interpret trends within the business, understand how people and performance intersect and take-on broader commercial outlook that benefits the business.

How to develop critical thinking skills

Critical thinking comes naturally to some people, but it is also a skill than can be practiced. Here are some tips for how to develop your own critical thinking skills :

• Examine: Self-awareness is the foundation of critical thinking. It allows you to play to your strengths and address your weaknesses. Question how and why you do things the way you do.
• Analyse: Look for opportunities to grow and improve. Consider alternative solutions to the problems you encounter in your work.
• Explain:  Clear communication is key. Get into the habit of talking through your reasoning and conclusions with colleagues.
• Innovate: Develop an independent mind-set. Find ways to think outside the box and challenge the status quo. Make sure your decisions are well-thought out. A critical thinker is logical as well as creative.
• Learn: Keep an open and well-oiled mind. Brush-up on your problem-solving skills by doing brain-teasers or trying to solve problems backwards. Keep up-to-date with professional learning opportunities . You may also need to unlearn past mindsets in order to grow and move forward.

How to apply critical thinking skills in your current role

Could you implement a new process or procedure that enhances performance or profitability? You might also consider volunteering for a new project or responsibility that gives you the opportunity to innovate and take on a new challenge. It’s a great way to broaden your skillset and gain exposure to other parts of the business.

Surround yourself with other critical thinkers in the organisation and work together towards achieving a problem-solving culture. Ask questions, and always look for opportunities for continual learning.

Changing roles to develop critical thinking skills 

At Moir Group, we are passionate about finding the right cultural fit between people and the organisations they work with. If you are a critical thinker, it’s worth looking for a stimulating work environment that encourages innovation and non-conformist thinking when considering your next role.

How to demonstrate critical thinking skills at an interview

During an interview, use examples from your past experiences to demonstrate your problem-solving abilities. Show that you can be analytical, weigh-up pros and cons, consider other view points and be creative in your solutions. Clearly articulating your thought process is key.

Sometimes an interviewer will ask you to simplify the complex as a way of determining your clarity of thought. For example: “How would you explain the state of the economy to a kindergarten child?” In instances like these, the focus will be on how you explain your reasoning, rather than achieving a ‘right’ answer. Learn more here.

If you’re looking to take that next step in your career, we can help. Get in touch with us here .

2 Responses to “How to develop critical thinking skills in finance & accounting”

Hi Stephen,

The above is very useful and very valuable for employers. However my understanding of critical thinking is slightly different from above. I recently listened to a course in critical thinking by Professor Steven Novella of Yale School of Medicine. To keep it simple it is to do with assessing the veracity of views and statements made by oneself, others and media being constantly aware of the many biases, the flaws and fabrications of memory, half truths, unspoken truths, and even lies. So it becomes key to adopt an inquisitive mindset, to look for external evidence that supports argument and not just wishful or hopeful thinking.

Just wanting to add to the debate as this is a really important area.

Hi Richard,

We are pleased that found this article useful. Thanks for your sharing your thoughts about critical thinking.

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Why Critical Thinking Is Important for Careers in Accounting

Critical thinking skills are an asset in every industry, but some might be surprised to know that this type of thinking is especially important for success in accounting careers. Accounting is not all about crunching numbers, as one might think. Accounting professions have evolved, with advancements in technology and changes within various industries. Today, those in the accounting professions need to be able to implement strategies of critical thinking in order to analyze information, determine problems or areas of improvement, and develop logical solutions. 

The moment when you apply critical thinking skills to a career in accounting, you’ll ensure a successful future for yourself in the industry. Here’s what critical thinking looks like, and why it’s important for accounting professionals. 

What You Should Know That Defines Critical Thinking

Critical thinking is an innovative way of thinking in which someone assesses a problem by raising important questions, and wondering what can be improved upon. A critical thinker gathers new information that can be used to analyze and inform unique strategies to address an issue at hand. Critical thinkers are open-minded and accepting of unconventional approaches, rather than developing attachments to traditional schools of thought. 

The work of those with careers in accounting increasingly takes place in more complex environments, and accounting professionals are tackling new kinds of issues. By using critical thinking, an accounting professional looks beyond the numbers and conventional processes in place to determine new strategies, and increase the effectiveness of workflows. 

Why Critical Thinking is Important for Accounting Professions

Today, accounting professions look a lot different than they did twenty, or even ten years ago. Those in the accounting professions are often in charge of updating the financial frameworks of an organization to fit with the changes brought on by advancements in technology. Thanks to the integration of automated processes and calculations, the accounting industry has shifted from a focus on spreadsheets and specificities to the practical, hands-on implementation of innovative accounting strategies. Accounting professionals may be focused on making predictions or helping businesses to create more profitable policies, rather than mechanically crunching an organization’s numbers in line with traditional processes. 

Critical thinking is an important skill for those with careers in accounting

Today, professionals with accounting training backgrounds must be able to apply creative solutions to problems that businesses are facing, helping them to keep up with competitors and improve the profitability of their business model. Employers increasingly value accounting professionals who can apply creative thinking skills and problem-solving capabilities in order to come up with solutions based on adept analysis of data and systems knowledge. 

Improving Your Critical Thinking Skills

There are a few ways that professionals seeking accounting careers can improve their critical thinking skills. When looking at a situation or a problem, someone can first apply critical thinking by having a good understanding of the goal before attempting to develop solutions. This can be achieved simply by asking: “What is the desired outcome?” Next, critical thinking can be improved upon by becoming aware of inherent biases or attachment to traditional ways of accomplishing a task. By understanding that these biases and understandings have their limits, an individual will be more likely to be able to recognize when something could be improved upon. 

Lastly, individuals should conduct research on possible solutions, discussing and collaborating with others who would be able to contribute a unique perspective. By brainstorming and exploring all possible avenues of thought, an individual will prepare themselves to think critically about the situation at hand. Are you ready to apply your critical thinking skills to an accounting course ?

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Types of Skills for Accountants

Technical accounting proficiency, technological adaptability, analytical and critical thinking, regulatory and ethical standards, communication and interpersonal abilities, business acumen and strategic insight, top hard skills for accountants.

Equipping accountants with analytical prowess and technological fluency for precision in financial stewardship and strategic decision-making.

• Advanced Excel and Spreadsheet Proficiency
• Financial Reporting and GAAP Compliance
• Tax Preparation and Planning
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• Financial Forecasting and Analysis
• Accounting Software Proficiency (e.g., QuickBooks, SAP)
• Regulatory Compliance and Tax Law
• Cost Accounting and Inventory Management
• Business Intelligence and Data Analytics
• Blockchain Fundamentals and Cryptocurrency Accounting

Top Soft Skills for Accountants

Empowering accountants with the interpersonal finesse and critical acumen essential for dynamic financial stewardship and client trust.

• Communication and Interpersonal Skills
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Continuous Learning and Professional Development

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Most Important Accountant Skills in 2024

Advanced data analysis and interpretation, technological proficiency, regulatory compliance and risk management, strategic financial planning, effective communication and reporting, business acumen and industry knowledge, leadership and team collaboration.

Show the Right Skills in Every Application

Accountant skills by experience level, important skills for entry-level accountants, important skills for mid-level accountants, important skills for senior accountants, most underrated skills for accountants, 1. active listening, 2. critical thinking, 3. cultural competence, how to demonstrate your skills as a accountant in 2024, how you can upskill as a accountant.

• Master Advanced Data Analysis Tools: Develop proficiency in data analytics software and tools such as Power BI, Tableau, or advanced Excel features to interpret financial data more effectively and provide strategic insights.
• Stay Current with Regulatory Changes: Regularly update your knowledge of accounting standards, tax laws, and compliance regulations through webinars, courses, and professional publications.
• Expand Expertise in Financial Technologies: Familiarize yourself with the latest fintech innovations, including blockchain, cryptocurrencies, and digital payments, to understand their impact on accounting practices.
• Enhance IT Skills and Cybersecurity Awareness: Improve your understanding of information systems and cybersecurity to protect sensitive financial data and understand the IT controls within your organization or client businesses.
• Obtain Specialized Certifications: Pursue additional certifications such as CMA, CGMA, or CPA specializations to demonstrate advanced competencies and dedication to your field.
• Embrace Automation and AI: Learn how to work with accounting automation tools and artificial intelligence to streamline processes and focus on more strategic tasks.
• Develop Soft Skills: Strengthen communication, leadership, and problem-solving skills to better manage teams, lead projects, and consult with clients on complex financial matters.
• Participate in Professional Accounting Networks: Join accounting forums, associations, and online communities to exchange knowledge, stay informed about industry trends, and build a professional network.
• Focus on Sustainability Accounting: Gain expertise in environmental, social, and governance (ESG) reporting and sustainable finance to meet the growing demand for accountability in corporate sustainability.
• Practice Continuous Learning: Set aside regular time for self-study, reading industry literature, and attending training to ensure your skills remain sharp and relevant.

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Critical thinking for accountants.

Critical thinking is becoming increasingly important for accountants. Your clients are looking to you for more analytical engagement. For accountants in business, critical thinking is an important skill to enable you to help your business achieve its potential.

This course explores critical thinking techniques and provides practical advice and tips on how to use them to benefit the organisations you work with.

The course will enable you to:

• understand critical thinking and use it to benefit the organisations you work with
• overcome the logical fallacies, flawed arguments and unfounded assumptions that lead to bad decisions
• improve your decision making by being honest with yourself and reflecting critically
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Employing good critical thinking skills, according to Mansfield, includes the ability to ask: i ) Does this look right for this type of business or the situation the client is in? ii ) What do I need to do to be able to look into the situation further? iii ) Can I get more diversified input so any biases don’t impair the conclusions or recommendations?

3. Communication

Another major skill area Mansfield sees as essential for CPAs and accountants is communication. More specifically, understanding the client’s perspective and presenting ideas from the client’s perspective are critical sub-skills within this broader category:

• Taking perspective — By stepping into the client’s shoes to analyze the decision or recommendation you are making can increase communication effectiveness almost immediately. It’s the responsibility of the accountant to help the client reach their goals, Mansfield says, adding that one critique she’s heard many times is that some professionals can be too direct or lack positioning that is relevant to the client.
• Thinking of the situation businesses are in now — During this time of the COVID-19 pandemic, your clients may need a great deal of empathy and truth. To connect with clients, you have to relate — or you will not elicit all the information you need from a client to advise them accurately. By walking in the shoes of the client; by thinking about the problem they’re encountering; by understanding the potential implications of the decision for their business (especially when the stakes are this high); by empathizing with them about how the stress and anxiety of the decision might be impacting them — these are best practices to be successful in perspective-taking.
• Presenting ideas by starting with the end-goal in mind — Whether you are presenting a recommendation to a board, management team, or individual, it’s a good idea to start with the end in mind, and connecting it to the client’s stated goals. Start with the recommendation first; focus on your rationale for it; and then walk the client through your thought process, so they are learning, and you are building trust. The more trust, the more the client shares, and the better your service. All of this is accomplished through effective communication with clients and with colleagues as well.

4. Digital mindset

The digital mindset, as Mansfield describes it, is the ability to adapt to change and apply that change to evolving their business model, practice area, or service. During this process, it’s also important to understand that technology is a tool to stand on. Indeed, another aspect of the digital mindset is learning how to evaluate technology, understanding how it impacts the workflow for the services you provide, and ultimately, determining whether or not the technology actually fits your needs.

For example, understanding how innovative technology like artificial intelligence currently figures into your workflow and how your interaction with AI could create bias in the output is an absolute must to be able to leverage the output successfully, Mansfield says.

Soft skills are critical now

These soft skills are of growing importance to the accounting profession because technology is continuing to automate the transactional side of accounting work, Mansfield explains. An accountants’ ability to connect, relate, and communicate will become ever more important in their role as advisor to clients, she adds.

Accounting professionals need to lean into their leadership, critical thinking, and communication skills and develop a digital mindset to capitalize on the unique value that they have to offer, she notes, adding that the opportunities are abundant, it just requires honing additional skills to deliver that knowledge and value to clients.

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What Are the Most Important Skills an Accountant Must Have?

Published on: April 6, 2022

When you pause to consider the oversized role that finances play in the lives of ordinary people as well as the larger domains of business and government, it is easy to see that money really does make the world go around. Given the supreme importance of money in our lives, overseeing its flow and tracking its quantities is absolutely essential.

These basic facts have made accounting a foundational element of society for centuries, and accounting remains a growth industry today. As  Husson University  puts it, “accountants are held in high regard for their integrity and knowledge and need excellent problem-solving skills to be successful.”

But what are the specific personal and accounting skills that you need to find success in this industry? And how can you build your resume to make you more attractive to accounting firms, private companies and other potential employers?

Read on for more facts about the accounting profession and a closer look at what it takes to excel in this essential, lucrative and challenging field.

Accountant Job Description and Growth Outlook

According to the most recent statistics from the  US Bureau of Labor Statistics , accountants and auditors command a median annual wage of $73,560. A testament to the considerable potential for advancement in the accounting field, the top 10 percent of accountants and auditors take home nearly $130,000 per year.

Accounting is expected to support an employment increase of 7 percent between 2020 and 2030. This translates to roughly 135,000 new job openings for accountants and auditors over the course of the decade. In addition to replacing accountants who retire or otherwise leave the profession, new accountants are needed to handle the countless financial records of an expanding economy.

To pursue any of these opportunities, aspiring accounting professionals should cultivate a number of skills, practices and abilities, including:

Technical Accounting Skills

In addition to keeping accurate financial records, accountants must have the basic technical ability to analyze, interpret and compare to help people and organizations reach their goals. A quality accounting program like those offered by Husson University can give you the knowledge and skill that you need to get on the path to success in this in-demand industry.

Knowledge of Accounting Practices

As defined by the educational resource  Accounting Tools , accounting practice is “the system of procedures and controls that an accounting department uses to create and record business transactions.” To be effective and meet relevant regulations, accounting practice must be extremely consistent and meet high ethical standards. From depreciation calculation methods to invoice payment operations, properly applied and consistent practice is an absolute must in all corners of the accounting sector. Depending on your area of professional interest, you may need to focus on several among many optimal accounting practices.

Understanding GAAP vs. IFRS Standards

Both the generally accepted accounting principles (GAAP) of the Financial Accounting Standards Board and the international financial reporting standards (IFRS) of the International Accounting Standards Board present consistent guidelines for accounting practice that are designed to ensure accuracy and set benchmarks for quality within the accounting industry. The essential difference between the GAAP and IFRS systems is in their basic regulatory methodologies. The IFRS takes a principles-based approach to address broad professional procedures, while the GAAP takes a rules-based approach to provide clear guidelines in considerable detail.

Financial Statements

In the US, all publicly traded companies must follow GAAP standards to calculate and compile their financial statements. The IFRS enforces similar financial statement guidelines in 166 jurisdictions around the world. In short, these standards and guidelines are designed to make sure that all financial statements are complete, comparable and consistent. Although GAAP-approved financial statements are not legal obligations for private companies, many lenders and creditors either prefer or require them.

Proficiency in Accounting Software

In the modern era, solid technical accounting skills require up-to-date technology expertise in your professional areas of choice. Driven by dramatic and ongoing advancements in the fields of accounting software, process automation and cloud computing, finance professionals and the companies for which they work are using newer and better technologies all the time. Common digital accounting tools range from basic tabulation software (such as QuickBooks® and Excel®) to enterprise resource planning platforms (such as Oracle® and SAP®) and business intelligence software (such as IBM® Cognos®).

Ability to Analyze Data

As technological advancements have allowed accountants to manage larger and larger amounts of financial information, big data analysis has become an increasingly vital part of the accounting profession. Modern accountants employ data analytics to help people and organizations discover valuable financial insights, identify efficient operational improvements and more effectively manage risk.

Accountant Personal Skills

Although technical accounting skills are certainly essential in the professional sphere, these highly specialized skills merely serve as a foundation for future success. Studies on factors such as personal working habits and emotional intelligence have repeatedly shown that the ways we work and our specific areas of operational focus play an enormous role in our professional triumphs and defeats. In fact, strong personal skills often separate the winners from the losers in the highly competitive accounting industry.

General Business Knowledge

Bridging the gap between technical and personal skills, and a firm grasp of general business knowledge can prove extraordinarily helpful in the world of accounting. As the scope of accounting positions has grown over time, accountants are working more regularly with professionals from all segments of the business world. At the very least, accountants with strong general business knowledge can better understand where and how their highly focused efforts fit into the larger business puzzle. At the highest level, business-savvy accounting professionals can collaborate with administrative leaders to shape operational strategy and make key company decisions.

Detail Oriented

The idea of the detail-obsessed accountant completely absorbed in financial records has become something of a cliche over the years. There is little doubt, however, that a healthy attention span and a willingness to closely scrutinize particulars cannot be overvalued in the accounting profession. By concentrating on every relevant detail, accountants can better achieve absolute accuracy, ensure regulatory compliance and identify strategic opportunities.

Organization

Like attention to detail, a propensity for organization is an important characteristic for most accountants. It isn’t enough to identify, examine and understand minuscule particulars. You must be able to categorize these particulars and keep each in its proper place. Of course, general office organization is also an absolute must in the accounting sector. After all, you don’t want to misplace that important record or document!

Verbal and Written Communication

When accountants get together, they often talk in a mixture of shorthand and jargon that can sound like another language to the average person. While this kind of communication is helpful when handling the business of the day, accountants also need to be able to speak directly to clients and professionals outside the accounting department using terms that are both clear and easy to understand. In other words, they must be adept at telling the story behind the numbers whether they are speaking or writing.

Critical Thinking

Far more than mere “number crunchers,” today’s accountants are often called upon to analyze information, identify problems or areas of potential improvement and develop reasonable strategies to meet specific goals. This means critical thinking skills are vitally important in the accounting industry. Critical thinking involves the development of innovative ways to assess situations by raising key questions, gathering relevant information and crafting improvement strategies. Accountants who can master these processes can go quite far in their profession.

Adaptability and Flexibility

Like critical thinking, the sought-after attributes of adaptability and flexibility are, in large part, driven by rapid technological evolution in the accounting sector. In brief, automation, artificial intelligence and other high-tech advancements have dramatically increased the rate of operations in the field of accounting and precipitated the rate of change in the financial sector as a whole. These trends have placed an extremely high value on accounting professionals who are able to effectively pivot and adapt to change on a constant basis.

Time Management

Although effective and efficient time management is a key skill across all professional fields and industries, it is particularly important in the accounting environment. After all, accountants typically need to maintain strict schedules if they are to meet critical monthly and yearly deadlines. If their accounting departments or firms fail to produce official records or file regulatory reports in a timely manner, companies may be subject to significant penalties.

Team Collaboration

The collaboration process begins by identifying your own strengths and weaknesses in terms of both technical knowledge and personal skill. A frank assessment of your attributes as an accountant will help you find your place on any professional team. In certain cases, the best way to contribute to a specific team will be to take a leadership role within it. According to human resources expert  Robert Half , accounting departments and firms generally look to fill entry level positions with people who can step into senior leadership roles when they are needed to do so. “They look for individuals who can avoid or resolve conflicts, adapt well to change, mentor others and embrace continuous learning,” writes Half.

Service Oriented

Accounting may not be the first profession you think of when you hear the term “customer service,” but a service-based orientation is vital to success in both the public and the private accounting spheres. As Robert Half puts it, “If you work in a public accounting firm, you need to be able to retain current customers and bring in new clients. And if you work in corporate accounting, you must meet the needs of the organization’s other departments and managers.”

How to Improve Accounting Skills

Because accounting is a highly desirable and popular career choice, there are many in-person and online programs to choose from. It is important, however, to choose a program that is specifically geared toward improving the accounting skills that have proven the most practical and consequential in terms of overall industry success.

The   Husson University online accounting program  offers the convenience of 24/7 online access and the flexibility to build the specific skills you need to reach your own unique goals. Taught by professors who are licensed CPAs, Husson accounting courses are tailored to meet the real-world demands of the modern accounting sector.

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Improving Critical Thinking Skills

November 01, 2021

By: Sonja Pippin , Ph.D., CPA ; Brett Rixom , Ph.D., CPA ; Jeffrey Wong , Ph.D., CPA

Whether working with financial statements, analyzing operational and nonfinancial information, implementing machine learning and AI processes, or carrying out many of their other varied responsibilities, accounting and finance professionals need to apply critical thinking skills to interpret the story behind the numbers.

Critical thinking is needed to evaluate complex situations and arrive at logical, sometimes creative, answers to questions. Informed judgments incorporating the ever-increasing amount of data available are essential for decision making and strategic planning.

Thus, creatively thinking about problems is a core competency for accounting and finance professionals—and one that can be enhanced through effective training. One such approach is through metacognition. Training that employs a combination of both creative problem solving (divergent thinking) and convergence on a single solution (convergent thinking) can lead financial professionals to create and choose the best interpretations for phenomena observed and how to best utilize the information going forward. Employees at any level in the organization, from newly hired staff to those in the executive ranks, can use metacognition to improve their critical assessment of results when analyzing data.

THINKING ABOUT THINKING

Metacognition refers to individuals’ ability to be aware, understand, and purposefully guide how to think about a problem (see “What Is Metacognition?”). It’s also been described as “thinking about thinking” or “knowing about knowing” and can lead to a more careful and focused analysis of information. Metacognition can be thought about broadly as a way to improve critical thinking and problem solving.

In their article “Training Auditors to Perform Analytical Procedures Using Metacognitive Skills,” R. David Plumlee, Brett Rixom, and Andrew Rosman evaluated how different types of thinking can be applied to a variety of problems, such as the results of analytical procedures, and how those types of thinking can help auditors arrive at the correct explanation for unexpected results that were found ( The Accounting Review , January 2015). The training methods they describe in their study, based on the psychological research examining metacognition, focus on applying divergent and convergent thinking.

While they employed settings most commonly encountered by staff in an audit firm, their approach didn’t focus on methods used solely by public accountants. Therefore, the results can be generalized to professionals who work with all types of financial and nonfinancial data. It’s particularly helpful for those conducting data analysis.

Their approach involved a sequential process of divergent thinking followed by convergent thinking. Divergent thinking refers to creating multiple reasons about what could be causing the surprising or unusual patterns encountered when analyzing data before a definitive rationale is used to inform what actions to take or strategy to use. Here’s an example of divergent thinking:

The customer satisfaction metric employed by RNO Company has increased steadily for the quarter, yet its sales numbers and revenue have declined steadily for the same period. Jill, a senior accountant, conducted ratio and trend analyses and found some of the results to be unusual. To apply divergent thinking, Jill would think of multiple potential reasons for this surprising result before removing any reason from consideration.

Convergent thinking is the process of finding the best explanation for the surprising results so that potential actions can be explored accordingly. The process consists of narrowing down the different reasons by ensuring the only reasons that are kept for consideration are ones that explain all of the surprising patterns seen in the results without explaining more than what is needed. In this way, actions can be taken to address the heart of any problems found instead of just the symptoms. On the other hand, if the surprising result is beneficial to an organization, it can make it easier to take the correct actions to replicate the benefit in other aspects of the business. Here’s an example of convergent thinking:

Washoe, Inc.’s customer satisfaction metric has increased steadily for the quarter, yet sales numbers and revenue have steadily declined for the same period. Roberto found this result to be surprising. After employing divergent thinking to identify 10 potential reasons for this result, such as “the reason that customers seem more satisfied is that the price of goods has been reduced, which also explains the reduction in sales revenue.” To apply convergent thinking, Roberto reviewed each reason that best fit. If the reason doesn’t explain the unusual results satisfactorily, then it will either be modified or discarded. For example, the reduced price of goods doesn’t explain all of the results—specifically, the decrease in units sold—so it needs to either be eliminated as a possible explanation or modified until it does explain all the results.

Exploring strategic or corrective actions based on reasons that completely explain the unusual results increases the chance of correctly addressing the actual issue behind the surprising result. Also, by making sure that the reason doesn’t contain extraneous details, unneeded actions can be avoided.

It’s important to note that a sequential process is required for these types of thinking to be most effective. When encountering a surprising or unexpected result during data analysis, accounting professionals must first focus strictly on divergent thinking—thinking about potential reasons—before using convergent thinking to choose a reason that best explains the surprising result. If convergent thinking is used before divergent thinking is completed, it can lead to reasons being picked simply because they came to mind right away.

LEARNING THE PROCESS

Improving divergent and convergent thinking can benefit employees at any level of an organization. Newer professionals who don’t have as much technical knowledge and experience to draw upon may be more likely to focus on the first explanation that comes to mind (“premature convergent thinking”) without fully considering all of the potential reasons for the surprising results. Experienced individuals such as CFOs and controllers have more technical knowledge and practical experience to rely on, but it’s possible these seasoned employees fall into habits and follow past patterns of thought without fully exploring potential causes for surprising results.

Instructing all accounting professionals on how to think about surprising results can help them have a more complete understanding of the issues at hand that will help guide actions taken in the future. It can lead to a more creative approach when analyzing information and ultimately to better problem solving.

When teaching employees to use divergent and convergent thinking, the goal is to get them to focus on what should be done once they identify information that suggests a surprising result has occurred. The first step is to learn how to properly use divergent thinking to create a set of plausible explanations more likely to contain the actual reason for the surprising results. There’s a three-step method that individuals can follow (see Table 1):

• Ask a broad question that reflects the goal you have: For instance, what is it about the current information that suggests a potential surprising event? Or what led to this event that can help predict future occurrences?
• Answer that question with a complete sentence: Be sure the answer includes a description of the information that suggests a potential surprising event.
• Turn the broad question into a creative challenge: Identify the plausible reasons that could have led to the indications of a surprising event.

Once employees have a good grasp of how to use divergent thinking, the next step is to instruct them in the proper use of convergent thinking, which involves choosing the best possible reason from the ones identified during the divergent thinking process. Potential reasons need to be narrowed down by removing or modifying those that either don’t fully explain the surprising results or that overexplain the results.

Two simple questions can help individuals screen each of the possible explanations generated in the divergent thinking process (see Table 2):

• Can I think of transactions or events that would be considered expected but are accounted for by my ­explanation?
• Can I think of transactions or events that aren’t accounted for by my explanation but are unusual?

The first question is designed for an individual to think about whether there are other events outside of the current issue that fit the explanation: “Does the explanation also address phenomena that aren’t related to or outside the scope of the surprising result that’s being studied?” If the answer is “yes,” then this is a case of overexplanation. Consider, for example, a scenario involving an increase in bad debts. Relaxing credit requirements may explain the increase, but they would also explain a growth in sales and falling employee morale due to working massive amounts of overtime to make products for sale.

The second question is designed to think about whether an explanation only accounts for part of the phenomenon being observed: “Does the explanation address only part of what’s being observed while leaving other important details unexplained?” If the answer is “yes,” then it’s an under-explanation. For example, consider a decline in sales. An economic downturn at the same time as the decline may be a possible explanation, but it might only be part of the problem. A drop in product quality or a drop in demand due to obsolescence could also be causing sales to decline.

If the answer to either screening question is “yes,” then the explanation needs to be discarded from consideration or modified to better address the concern. In the case of over-explanation, the reason is too general and may lead to action areas where none is needed while still not addressing the actual issue. For underexplanation, the reason is incomplete because it accounts for only a portion of the phenomenon observed, thus action may only address a symptom and not the actual root problem.

If the answer to both questions is “no,” then the explanation is viable. The chosen reason neither overexplains nor underexplains the issue at hand, making it more likely that the recommended solution or plan of action based on that reason will be more successful at addressing the actual cause of the issue.

Divergent and convergent thinking are two distinct processes that work in conjunction with each other to arrive at potential reasons for the results they observe. Yet, as previously noted, the two ways of thinking must be conducted separately and sequentially in order to obtain optimal results. Divergent thinking must be applied first in order to achieve a diverse set of potential reasons. This will maximize the probability of generating a feasible reason that explains the results correctly. After the set of potential reasons has been generated using the divergent thinking approach, convergent thinking should be used to methodically remove or modify the reasons that don’t fit with the surprising results.

If both divergent thinking and convergent thinking are done simultaneously, premature convergence can lead to a less-than-optimal reason being chosen, which may lead to taking the wrong course of action. Thus, it’s important with training to instruct employees in the use of both divergent thinking and convergent thinking and to use the types of thinking sequentially.

ORGANIZATIONAL TRAINING

Learning to apply divergent and convergent thinking can require a substantial time commitment. The process we’ve described here is designed to enhance critical thinking and problem-solving skills. It outlines a general approach that doesn’t provide specific guidance on the best methods to analyze data or complete a task but rather focuses on successful methods to think of a diverse set of reasons for any surprising results and then how to choose the best explanation for that result in order to be able to recommend the most appropriate actions or solutions.

Individuals can practice the approach we’ve described on their own, but each organization will likely have its own preferred way to approach the analyses. Plumlee, et al., used training modules in their study that could be employed in a concerted effort by a company, with supervisors training their employees. We estimate that a basic training session would take about two hours. Complete training with practice and feedback would require about four hours—which could grow longer with even more for intensive training.

One area where this training could be very effective in helping employees is data analytics. In the past decade, an increasing amount of accounting and financial work involves or relies on data analysis. Data availability has increased exponentially, and companies use or have developed software that generates sophisticated analytical results.

Typical data analysis procedures accounting professionals might be called on to perform include things such as ratio and trend analyses, which compare financial and nonfinancial data over time and against industry information to examine whether results achieved are in line with expectations for strategic actions. Additionally, analyses are forward-looking when performance measures examined are leading indicators.

In order to perform data analytics effectively, accounting professionals must exercise sufficient judgment to critically assess the implications of any surprising results that are found. The quality of judgments and understanding the best ways to conduct and interpret the information uncovered by data analytics have typically been a function of time spent on the job along with training. At the same time, however, it’s commonplace that many of these analyses are performed by newer professionals.

Training in metacognition will help these employees more effectively and creatively reach conclusions about what they’ve observed in their analysis. Since the method discussed provides general instruction, each organization can customize the approach to best fit its own operations, strategies, and goals. Implementing a training program can be worth the investment given the importance of critical thinking throughout the process of evaluating operating results. Avoiding potential failures with interpreting results that could be prevented would seem to warrant the consideration of metacognitive training.

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Accounting Research: Tools and Strategies, 7th Edition by Thomas R. Weirich, Thomas C. Pearson, Natalie Tatiana Churyk

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Critical Thinking and Effective Writing Skills for the Professional Accountant

Learning objectives.

After completing this chapter, you should understand:

• Critical thinking skills.
• Levels of thinking.
• How critical thinking skills can help professional accountants “add value” to their services.
• How competent writing forms a key element of critical thinking skills.
• How to strengthen and improve writing skills.
• The proper use of punctuation.
• The U.S. Securities and Exchange Commission's “Plain English” initiative.
• How to write effective client letters and e-mails.
• How to write memos to a file.

C hange is accelerating in today's environment and the pressure to respond is intensifying. As new technology, accounting standards, laws, business methods, and global economic realities work their way through the accounting profession, these changes and realities are becoming increasingly complex. Critical thinking is necessary for effectively addressing these dynamic changes and is considered an important component of accounting education. All professionals must also know how to write effectively.

Clients now expect professional accountants to “add value” to what they observe, read, and write. Accountants must evaluate complex systems and information, as well as detect, predict, advise, and recommend appropriate courses of action. Critical thinking is needed throughout the process. Effective writing communicates the results to others.

CRITICAL THINKING SKILLS

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