Few careers require one to be as multifaceted as that of a CPA. Although the idea persists that CPAs excel at "number crunching" — and many do — CPAs bring much more than financial skills to the conference table. It is often those "other" qualities, too, that have traditionally led the public to view CPAs as among the most trusted of business advisers.
Today's CPAs function as business partners, not simply accountants. Sure, they still compile financial statements, perform audits and prepare tax returns, but they also work alongside clients to understand their goals, help solve their problems and steer them toward a successful outcome. This requires the CPA to assume numerous roles.
Sought-After Skills
CPAs must draw on a variety of skills and attributes to meet increasing client demands. Certain competencies repeatedly emerge as the most highly sought after, whether a CPA works in public accounting, government accounting, the nonprofit sector, or business and industry. These in-demand abilities and knowledge areas include:
Technical proficiency.
It is understood that CPAs are well versed in their discipline — after all, the licensing exam requires it. CPAs must exceed the usual education and training standards expected of business professionals. Most states now require 150 hours of college-level education and some career experience before even taking the exam. But the learning does not stop there.
To stay abreast of changing rules and regulations in the business and financial worlds, technical skills must be honed and expanded through required continuing professional education courses. CPAs should also join professional associations to stay current with industry developments.
But more important than simply amassing technical knowledge is knowing what information is needed in a situation, where to find it and how to use it to create value for a client.
General business knowledge.
Successful CPAs are capable of consulting with clients on every aspect of their operations to help them create value. This requires extensive knowledge of business processes, risk management, financing scenarios and tax considerations — to name just a few key areas. CPAs are just as likely to assist with forecasting sales or analyzing product profitability as they are to advise clients on tax issues.
Problem-solving ability.
Financial matters cannot be assessed in a vacuum, since they're inevitably tied to business issues. CPAs who are skilled at seeing patterns in the numbers, tracing them to operational problems and proposing creative solutions are in great demand. For instance, a company experiencing dwindling profit margins may need a CPA to examine how product costs accrue, identify areas where expenses are too high and recommend changes to improve margins. In the past, CPAs might simply have calculated the profit margin; today, they may be tasked with improving it.
Aptitude with technology.
CPAs can create value by combining their knowledge of business and technology to enhance the quality of information clients receive. Rather than simply telling a company that the cost of sales is too high, an effective CPA identifies data that illustrates this fact. To deliver actionable information, CPAs must be reasonably literate in the language and uses of technology. Especially in larger organizations, the CPA may need to interact with information technology staff to secure the necessary data. Thus, the ability to function well in an IT environment can enhance the CPA's success.
Desirable Attributes
In addition to having a broad base of knowledge and skills, CPAs are expected to possess an extraordinary range of personal attributes. Clients may even view these qualities as equal in importance to a CPA's professional credentials. They include:
Interpersonal skills.
Qualities such as the ability to listen well and demonstrate a genuine interest in a client's business cannot be taught — and certainly not everyone possesses these qualities to the same degree. It may be these "soft" skills, however, that distinguish the great CPAs from the merely good ones. Those who can establish an easy rapport with clients and inspire confidence will inevitably be successful.
Integrity.
Many universities and continuing education programs offer courses to help accountants improve their awareness of ethical issues, but it's not enough to simply understand the rules of professional conduct. CPAs are ideally their own best watchdogs, and this requires a reliable internal compass that guides one in doing the right thing at all times. Although integrity isn't easily taught, it's a quality that comes naturally to superior CPAs.
Inquisitiveness.
Effective CPAs possess a willingness to raise questions to ensure the best course of action is taken. They continually challenge their own assumptions and conclusions and those of others. This may mean questioning why a business uses cash versus accrual method of accounting, leases rather than buys equipment or believes its internal controls are adequate.
Ability to see the big picture.
Business people can experience difficulty in identifying all the challenges and problems they may face because they are immersed in the many smaller details that demand their attention. An effective CPA aids the client by assuming a more expansive and objective point of view. CPAs who work with family businesses, for instance, are skilled at diffusing conflicts among family members and helping them stay focused on what is best for the business.
Finally,
great CPAs are not necessarily those who know the most, but those who recognize when they don't know enough about a particular area or issue. In these cases, the CPA will bring in others to supply expertise — and clients will undoubtedly consider this attribute a sure sign of a great accountant.
