Numbers and Beyond: The Comprehensive Skill Set of an Accounting Major

accounting majors collaborating at the University of Memphis

These days, there is no overstating the importance of accounting, especially in the business world. Companies of all sizes rely on accurate accounting to keep records of transactions, empower decision-making and ensure regulatory compliance.

With so much at stake, it makes sense that the demand for accountants and auditors is projected to grow by 4% between 2022 and 2032 alone, with an expected 67,400 new jobs during this time.

Interested in an accounting career? It's essential to understand what this work entails as well as the skills you'll need to succeed.

Uncovering the Core of Accounting

At its core, accounting refers to the act of tracking financial transactions within a business or organization. This includes money being brought in and money being spent. From there, accountants may use this information to make budget recommendations and provide other valuable insights to leadership or management.

The Evolution of Accounting Practices

Accounting practices have come a long way since the first evidence of accounting language as early as 8000 BC. By 1887, the American Association of Public Accountants (AAPA) was established—and by 1896, the professional was formally recognized with the creation of the certified public account (CPA) title.

Back then, most accounting was done manually, with professionals tracking spending and revenue on paper. When IBM released the first computer in 1952, accountants were among the first to use them. Nowadays, accountants rely on computers and accounting software to automate many of their daily tasks, enabling them to do their jobs more efficiently than ever.

Key Principles and Standards in Accounting

In the United States, accountants follow "generally accepted accounting principles" (GAAP), which provide general rules and guidelines for financial reporting. These standards include the following and more:

Full disclosure principle
Conservatism principle
Revenue recognition principle
Going concern principle

Essential Accounting Major Skills

If you're thinking about becoming an accountant, you might be wondering what to expect when it comes to skills needed for accounting success.

Analytical and Critical Thinking Skills

No matter what you end up doing within the accounting field, having solid analytical, critical thinking and problem-solving skills is a must. These include:

In-depth analysis of financial data and patterns
Ability to resolve issues in complex accounting scenarios
Accuracy, precision and attention to detail in calculations

Mastery of Mathematical Techniques

Accountants must also have a mastery of mathematics and the techniques used on a daily basis. While accounting software can do a lot of the "work" for you, accountants still need to understand basic algebra, addition, subtraction, multiplication and division. These mathematical skills are used to calculate assets, profits, revenues, liabilities and more. It is also not uncommon for accountants to work with percentages and ratios.

Beyond Numbers: The Soft Skills of Successful Accountants

What other accounting major skills will you need to thrive in this field? In addition to more technical skills, numerous soft skills can help you succeed as an accountant. These include effective communication skills and public speaking ability as well as professional integrity, time management and ethical awareness, among others.

Effective Communication and Presentation Skills

Accountants are in regular communication with stakeholders and other professionals, including higher-ups like management and even chief executives. With this in mind, accounting professionals should exhibit:

Clear, concise communication with stakeholders regarding financial data and information
Collaboration and teamwork with clients and colleagues alike
Comfort with presenting and public speaking for meetings and reporting purposes

Ethical Considerations and Professional Integrity

Meanwhile, accountants must do their jobs with a strong sense of integrity and professionalism. More specifically, this includes:

Upholding honesty and integrity in financial reporting and decision-making processes
Adhering to professional accounting standards and ethics
Maintaining confidentiality and discretion regarding sensitive financial information

Technology in Modern Accounting

As you embark on your accounting education and career, you'll encounter plenty of jargon and technology that you'll need to master in order to do your job well. Today, accountants rely on more technology than ever before in their work, such as accounting software, data visualization tools and much more.

Familiarity With Accounting Software

All accountants should be familiar with popular accounting software (like QuickBooks, Xero and SAP). Different businesses may use different software, so having a general understanding of the most in-demand choices will serve you well.

Within each software program, accountants must understand how to handle such tasks as data entry, reconciliation and reporting. The most successful accountants will also know how to automate routine and repetitive tasks to save time and focus on other critical areas of their work.

Data Analysis and Management Skills

Along with knowing how to use the most popular accounting software, these professionals should also possess solid data analysis and management skills. Spreadsheet management and data visualization techniques will come in handy on the job, plus integration with Excel and other accounting tools to gain and share valuable insights.

Business Acumen and Industry Knowledge

The above skills for an accountant is by no means an exhaustive list, but it can help give aspiring accountants a better idea of which skills they may need to sharpen before they begin working in the field. Aside from the soft and technical skills covered already, it is also worth noting that successful accountants tend to have a strong sense of business acumen and specific industry knowledge to set them apart.

Understanding of Business Operations

Ideally, accountants should have a firm grasp of business operations, including:

Insight into a range of industries and sectors
Merging accounting principles with business strategies
Enhancing organizational growth, profitability and overall success

When accountants are able to see the "big picture" of how a company's finances affect overall goals and missions, these professionals can make major contributions to the organization's success and bottom line.

Regulatory Compliance Knowledge

Different industries also have different laws and regulations that businesses must follow to remain compliant and avoid penalties or other legal issues. Accountants need to be familiar with these laws and regulations, as a substantial part of the job involves keeping businesses in compliance.

That being said, accountants should demonstrate:

Awareness and knowledge of industry-specific regulations and compliance requirements
Capability to track and monitor changes in accounting standards and tax laws
Legal compliance in financial reporting and risk management and mitigation

Continuous Learning and Professional Development

Even once you earn your degree in accounting and begin working, it's key to understand that you're never quite done learning or growing in this profession. Accounting standards can change, and new trends and technologies emerge on a regular basis. To remain informed and competitive in the field, accountants should be committed to a lifetime of continuing education and professional growth.

Continuing Education and Certifications

Continuing education in the accounting field means staying updated on evolving accounting practices as well as pursuing professional certifications and designations that may help advance your career. Some examples of the most in-demand accounting certifications you might want to consider include:

Certified Public Accountant (CPA)
Certified Management Accountant (CMA)
Association of Chartered Certified Accountants (ACCA)

Accountants can also benefit from participating in professional development opportunities, such as accounting seminars, workshops and even online courses. These events can be a great way to learn the latest techniques and trends in the field while meeting like-minded professionals.

Networking and Career Advancement

Building professional relationships is also key to career advancement within the field of accounting. By knowing the right people, you can increase your chances of being connected to jobs and growth opportunities that align with your professional goals.

There are many ways to network and connect within the accounting industry. In addition to attending industry conferences and events, consider building relationships with school alumni or using a professional networking site (like LinkedIn) to connect with others in the field.

Mentorship opportunities can also prove invaluable as a means of career growth, especially if you're interested in a more specialized area of accounting. Working with a mentor allows you to receive personalized guidance as you move through different stages of your career—directly from experienced and respected accounting industry professionals.

Begin Your Accounting Journey Today

Working in accounting requires a great deal of number-crunching, problem-solving and analytical thinking. However, with the right education and training, you can be on your way to an exciting and rewarding career.

At the University of Memphis Global, our School of Accountancy is proud to offer a variety of undergraduate and graduate accounting degrees to help you pursue your professional goals. Specifically, you may want to explore our Bachelor of Business Administration (BBA) degree with a major in accounting, which can be completed entirely online in about four years.

Learn more about this and other degree programs offered by U of M Global by contacting us today. You can also get started with your application on our website.

Share this article

Sources

https://www.memphis.edu/uofmglobal/degrees/undergraduate/accountancy.php

https://apply.memphis.edu/register/inquiryumglobal

https://www.memphis.edu/uofmglobal/admissions/index.php

https://www.investopedia.com/articles/08/accounting-history.asp

www.investopedia.com/terms/a/accounting-principles.asp

www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm

https://www.indeed.com/career-advice/career-development/accounting-certifications