Must-have Accounting Skills for an Accounting Professional

It is a well-known fact that knowledge is an infinite resource; which means that there is no end in learning new skills to be updated with recent technological developments. 

Such is the case for accounting professionals who need to master several accounting skills to keep in touch with new advancements in the said domain.

Important skills to master for an accounting professional

The following are the skills which an ideal accountant must have –

• Basics of accounting

An accountant should know how to prepare financial statements and accounting reports for planning, budgeting, controlling decision-making, and other financial aspects of an organization. 

This involves several elements –

1. Balance sheet.
2. Profit and loss.
3. Determining cash flow.

An accounting professional needs to understand the correlation and inter-linkage between these statements.

• Client management & related interpersonal skills

There is a misconception that the role of an accountant involves only numbers and charts. Along with proficient mathematical skills, an accountant should also acquire interpersonal skills such as client management, negotiation tactics, etc. 

As an accountant, you may have regular meetings with various clients and professionals. Hence, good interpersonal accounting skills are considered as a vital client strategy for every CA.

• Taxation

Taxation is a volatile subject in the field of accounting. An accounting professional requires advanced knowledge which is only possible through training and strong experience and accounting software in India. It falls under the responsibility of an accountant to assist and navigate their customers through taxation procedures efficiently and accurately. 

For an accounting professional, an in-depth understanding of tax exemptions, taxable income, taxable items, etc. is key to providing service in the said domain. 

Corporate taxes payable every year are determined by accounting professionals by auditing financial records, one of the most technically challenging and arduous tasks for a professional.

• Analysis

One of the most important criteria to become an ideal accountant, an aspiring individual needs to learn to conduct the following analyses –

1. Variance analysis.
2. Product profitability.
3. Cost analysis.
4. Capital budgeting.
5. Forecasting allocation.
6. Strategic planning.

These analyses help an accountant to ensure proper allocation of resources and achieve management goals. 

A professional with such accounting skills can be employed at numerous organizations having the above-stated job description. Moreover, owning these skills will certainly make your CA firm stand out from the rest.

• Exposure in accounting software

In the present era, applications of automation systems are being implemented in every business module. 

Although accounting mainly involves analysis and strong quantitative skills, computation and data modeling of certain analysis programs can help improve the overall accounting process. 

Automation facilities incorporated in these applications mainly include data mining, interpreting and developing complex models, etc.

Several accounting softwares in India come with built-in automated features. These software programs enable accounting professionals to ensure accurate and productive financial record keeping. 

Some of the most used accounting software in India is –

• Tally.ERP 9
• MAG.ERP 9
• Zoho books
• Clear Tax

Individuals with such accounting skills can apply for a chartered accountant examination. Moreover, accountants with extensive knowledge of the above skills can open their accounting firm or expand their existing business by availing financing options for chartered accountant.

An equipped accounting professional should be capable of integrating fresh ideas to solve financial contingency. The perfect balance of software and basic accounting skills is the building block of an ideal accountant. 

It is very important for the accountants to match these skills and professionalism in their working methodology so that it becomes more important for them to match with today’s pace and technology.