A prerequisite for a successful career in accounting is to have a strong grasp of mathematics in conjunction with an analytical mindset. With daily tasks such as filing tax returns, preparing financial reports, and performing audits, strong maths-based knowledge is non-negotiable.
However, success isn’t only dependent on mathematical and analytical skills, especially for those who are promoted to management positions. In fact, leadership skills can be just as vital. Here are the top 10 leadership skills that accountants should possess.
1) Communication
The best accountants will look beyond the numbers. This may sound strange for a profession that’s so numbers-based, but successful accountants should have people skills that are just as developed as their numeracy skills.
Strong communication skills are essential for dealing with clients and building business relationships. A key task for accountants is to explain complex accounting concepts to their clients in an easy-to-understand way, which requires excellent communication skills in addition to in-depth knowledge of their area of expertise.
If clients don’t understand the information that’s being presented to them, it will be much harder for them to make the best financial decisions for their businesses. In the worst-case scenario, they could even blame their accountant for failing to explain these financial concepts to them properly if their business ventures are performing poorly.
To avoid this issue, accountants should focus on honing their communication and interpersonal skills, as this skill set is just as important as their accounting knowledge. Having great communication skills is also necessary for working well in an accounting team, especially for team leaders.
2) Critical Thinking
Being an accountant encompasses so much more than just performing calculations and creating reports. Instead of simply reporting data, accountants have to analyze it, discover trends, and use this information to create financial strategies that will benefit their clients.
To do this effectively, accountants need to have strong critical thinking skills. In essence, they should be able to analyze, evaluate and interpret data in order to form a judgment, rather than simply reporting data or relying on someone else’s opinions. Therefore, to offer the best possible financial advice to their clients, accountants must work on constantly honing their critical thinking skills to spot important trends.
3) Technology
Nowadays, technology is a huge part of accounting. Thanks to cloud-based accounting software, accountants can now easily perform calculations, file tax returns, prepare reports and share important information with clients at any time.
Since accounting software can dramatically improve accuracy and efficiency, it’s imperative that accountants learn how to use accounting technology to stay competitive within their industry. Ultimately, all accountants in any accounting team should have strong technology skills, as this will allow them to use all of the types of software that the client needs (e.g. MTD-compliant accounting software, payroll software etc).
4) Organisation
In addition to accounting software, accountants can now also use project management software to boost their efficiency. With this software, accountants can create projects and to-do lists, assign tasks, track project progress and share information with all relevant team members, making it much easier to stay organized.
However, this technology can’t replace the vital skill of being personally organized. Accountants are often juggling several tasks at once to meet strict deadlines, so having strong organizational skills is a must for the whole team. Accounting team managers must lead by example and show junior accountants how to organize their work effectively.
5) Time Management
Similar to organizational skills, time management skills are essential for accountants. Since accountants often face strict deadlines, they need to be able to prioritize tasks so they can complete each one on time without sacrificing standards.
In addition, it’s important to use time management skills to balance work and personal life too. Accountants can be very busy, but this doesn’t mean they should sacrifice their much-needed rest and personal time off. Having enough time to unwind after each workday can help accountants approach previous problems with a refreshed mindset, which can then improve their problem-solving skills.
6) Adaptability
The accounting industry is constantly evolving. With new technology, new regulations, and new clients to keep up with, accounting team leaders need to show that they’re flexible and adaptable if they want to succeed. Staying up-to-date with industry trends and networking with other accountants are essential for anticipating these changes and adapting ahead of time.
7) Initiative
A capable leader should always take the initiative rather than wait for someone else to act. This demonstrates that the team leader has what it takes to make intelligent decisions on their own and be decisive during difficult times.
Additionally, this behavior is inspiring for the whole team. If a team of accountants can see that their manager always takes the initiative, this will motivate them to be more independent and decisive with their own work. Since accountants often work independently, this is an essential skill to learn.
8) Charisma
Unfortunately, being a leader can be very difficult for those who lack natural charisma. However, this isn’t necessarily a huge obstacle to overcome. Charisma is a skill that can be learned, just like time management and organization.
Charisma inspires loyalty and helps you persuade people to follow your directions. Communication and interpersonal skills are obviously a key part of charisma, but if you want to learn more about charisma specifically, then there are plenty of self-help books and online courses that can teach you how to build confidence and charisma. Accounting team leaders should practice these skills consistently if they want to achieve success.
9) Mentoring
To build an excellent accounting team, accounting team leaders need to be able to mentor junior accountants so they can achieve their personal development goals. Regular team mentoring can ensure that everyone is reaching their full potential and completing high-quality work.
During the mentoring process managers need to ascertain the strengths and weaknesses of every team member, as this will inform them as to which goals each individual needs to work towards. Therefore, leaders should develop their perception skills and also ensure that they’re approachable, as this will make it easier for their accountants to ask questions and discuss their aspirations.
10) Planning
Finally, accountants should develop their planning skills to help them prepare for future challenges. The accounting industry is always evolving, so accountants need to anticipate potential problems and think of ways to overcome these issues. Planning will also help them become more organized with their day-to-day tasks, so it’s important to get into the habit of setting aside some time each day to prepare for the week ahead (or beyond).
Ultimately, these skills are all instrumental in helping accountants become capable, confident leaders. To progress in their careers and eventually manage a team, accountants must focus on these skills and practice any areas they find challenging. Over time, they can strengthen these skills to benefit their personal development and the business as a whole.