Lynne Hardman, executive director at Badenoch & Clark looks at the evolving role of the accounting profession and employee skill sets.

Traditionally, accounting and finance professionals are thought of as the people who ‘do the numbers’ and carry out financial functions within a company. There’s no doubt that this is still at the core of what they do, but it’s not the full extent of where they can add value.

Our latest study* of 2,500 accountants and their employers revealed a gradual but significant shift in the skill sets required by accounting and finance professionals. It also reveals a significant appetite for the main accountancy bodies to review their training schemes.

Currently almost 80% of companies that employ accountants believe the professional role has changed dramatically over the past five years. Almost a third (28%) of recruiters believe that the role of a traditional accountant is less relevant and that accountancy qualifications are not setting a strong enough foundation for success.

Skill sets are evolving
Indeed, the landscape of business has significantly changed over the last 10 years and this is having an impact on the type of skills being sought out by managers. Despite the current economic difficulties, many businesses are still recruiting and there are roles out there for talented professionals that tick all of the boxes.

Clients are telling us that they need people with an astute business mind, strong commercial acumen and the ability to apply their knowledge and experience in a commercial environment, because as the role evolves, accounting and finance professionals are required to work closer with other parts of the organisation and deal with the longer term financial implications of major commercial business decisions. More than ever they’re being asked to adopt business partner roles as well as interpreting and explaining financials to non-finance departments.

Skill up and move up
Our research has also shown a significant disparity between what employers and employees believe are the skills of ‘today’s accountant’. It appears that accounting and finance professionals are largely ignoring the changing nature of the profession.

Despite employers prioritising broader commercial, leadership and communication skills as a ‘must’ for career progression, almost half (47%) of employees are still focusing primarily on developing their technical and IT skills. Of course, technical skills are important and should be there as a foundation, but it seems that too many professionals are focusing on these skills to the exclusion of all others.

Where the key technical skills were once crucial to success, employees without commercial acumen and the ability to communicate financial information clearly will find it harder to progress as the role of the traditional ‘number crunching’ accountant becomes less relevant.
If they are ever to be seen as part of the ‘top team’ and not just the ‘human calculator’ then they have to be versed in the right skills such as change management and strategic planning.

Step up to the challenge
This shift in the skills landscape has made it imperative for accountants to open up their horizons and think about all facets of the job - but is the accounting and finance profession ready to step up to the challenge?

Employers need to offer broader career development opportunities to their accounting and finance staff to make sure they can meet the demands of the organisation. At the same time, accountants need to be trained effectively at the beginning of their careers if they are to play such a role; a responsibility that lies mainly at the door of the accountancy bodies.

These developments in standards will result in accounting and finance professionals playing a more meaningful role in business. Although accounting bodies have broadened their training in recent years to meet the challenge and ensure the teaching they provide remains relevant in a wider business context, employers clearly feel that there is more to be done. If it isn’t, the discrepancy between accountants’ skill sets and the needs of businesses will remain.

*Balancing Act: Is the accounting and finance profession ready to step up? Click here [1] to download a PDF of the study.