As accounting firm leaders, it is no longer enough to ace the art of balancing books – the profession has evolved over the years and they now need to balance several other aspects to become successful. Technical prowess, accuracy, and attention to detail to avoid errors are only a part of it; the accounting leader’s role is a fusion of analytical expertise, regulatory knowledge, and the display of leadership.
If you have started your accounting firm recently, you, certainly, do not want to limit yourself to another service provider. So the question here is what will set you apart? You need to learn soft skills for leaders, the ones that also make you a favorable employer and an excellent accounting service provider. By 2032, the jobs in accounting and finance are expected to grow by 4%. The leaders need to buck up for it and become the place where people want to work.
In this article by Finsmart Accounting – trusted globally for bookkeeping outsourcing services, we will share 5 soft skills that are growth-critical in an accounting firm leader. Let’s start by understanding why soft skills – also known as people skills – are important as technical knowledge.
Why are soft skills as important as technical knowledge?
Accounting is a niche field, there is no doubt about that. This means that when a client looks for an accounting firm to complete their tasks, it is not that hard to find. Moreover, as technology and automation continue to become a key part of the accounting field, more and more firms are simplifying technical jobs. Today, clients look beyond bookkeeping, taxation, payroll, and other core services – it is about the experience. Clients look for firms that can provide advisory services, the ones that combine soft skills with accounting proficiency.
While technical tasks can be done through automation, the ability to communicate, strategize, and provide solutions through a problem-solving approach requires the human touch. It is also the soft skills that allow accounting firms to develop true relationships with clients and become an indispensable part of the teams. Clients are looking for accounting firms and leaders who understand their goals, shortcomings, and fears. They need an advisor who understands their issues like none other and helps solve them. And that is where soft skills for leaders come into the picture.
Top soft skills that accounting leaders need in 2024
There are several important soft skills for leaders – while some you may already possess, others need to be honed. The values, ideals, and faith of the leaders often translate into practice by the rest of the employees. Here are the top soft skills that accounting leaders need to succeed in 2024:
– Become more people-focused
While everyone out there talks about employee attraction and retention, nobody tells how. While as an accounting service provider, it is important to focus on the clients, what is more important is to focus on “your people”. Develop a team that is driven by your company’s goals and is motivated. Do not stick to what you see in your team’s reports; always go beyond. In a team meeting or a one-on-one, make it a practice to ask questions. Talking to them will help you understand if you are on the right track, as a leader. Being a leader means leading by example.
Always remember that you will be able to serve your clients better only if your employees are happy. Acknowledge the fact that each member of your team will be different. They work in different ways and respond to different things. This year, if you aim to solve the talent shortage issue in your firm, this has to be the key focus area.
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– Nurture your problem-solving abilities
As an accounting firm, finding yourself in the maze of numbers is only normal. It isn’t an exception. Whether you have to devise strategies to optimize tax liabilities or navigate through complex regulatory problems, having a problem-solving approach should become an integral part of your role. Analyzing challenges and identifying the root causes to develop effective solutions count as key soft skills for leaders.
Accounting leaders should have strong critical thinking abilities to quickly assess the situation, and analyze the options in hand while keeping in mind the turnaround time to make sound decisions that benefit the firm and the clients. If you are not already adept at this, adopt a systematic approach to problems, think critically, and practice the art of decision-making under complex scenarios.
– Promote emotional intelligence
We live in highly stressful times, where as leaders it is important to be empathetic. Accounting as a profession is often stressful, especially during the peak seasons. As a leader, it is important to focus on understanding interpersonal relationships and acknowledge the fact that the stress is real, accountants do have a personal life and sometimes it does get too much.
Emotional intelligence not only helps the relationships within the organization but also helps understand the client’s financial concerns. A high degree of EQ can enhance your firm’s reputation and effectiveness as an accounting leader. The first step to possess emotional intelligence begins with self-awareness, understanding the emotions of your colleagues and clients, and developing mechanisms that help cope with stress.
– Be a team player
If you think as a leader, you can operate independently and that you no longer have to work with the team, the truth cannot be further away. Working along with the team is one of the key soft skills for leaders. The ability to communicate thoroughly with the team during a project, collaborate effectively when you find the team stuck, and understand the gaps with each generation of accountants is important for the success of your firm.
Modern-day accounting firms rely on cross-functional teams where every individual brings their diverse expertise to deliver solutions that are best suited for the clients. An accounting leader works as a bridge between the entry-level accountants and the stakeholders of the firm. Financial reporting, auditing, and strategic financial planning work together hand-in-hand and it is the responsibility of the accounting firm leaders to bind it all together. In case there is a discrepancy or a gap, it leads to several costly financial errors.
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– Practice ethical judgement
With automation and technology becoming an integral part of the accounting industry, accounting leaders need to uphold ethical standards in the highest regard. Accounting deals in sensitive financial matters and not sticking by it can lead clients and firms to incur heavy losses. Moral judgments extend beyond adhering to the set standards.
There is also regulatory compliance that requires the firm owners to have ethical practices. In complex situations where financial decisions are key, a wrong judgement can cost a fortune, sometimes leading to heavy scrutiny and audit by the IRS.
As an accounting firm owner, you have been levied with sensitive financial information and your ethical judgement is key in safeguarding the information and maintaining integrity. Your ability to make ethical decisions in challenging situations proves your professionalism and dedication.
Top soft skills for accounting firm leaders in 2024
The world is changing at a rapid pace and so is the accounting profession. As a new-age accounting firm leader, it is imperative to go beyond crunching numbers and lay equal focus on soft skills. Your key shift in 2024 should be on recognizing the importance of soft skills and training your team accordingly. No matter what you do, or what policies you cater to, as a new-age firm, you should be people-oriented rather than technically driven. This will impact how you hire, train, and manage your teams. When you shift the focus in the right direction, you will understand the real needs of the clients. It also helps enhance the quality of the services you offer to your clients.
If you are struggling with equipping yourself and the team with soft skills, you might want to consider hiring an outsourced team that has it all. To know more about outsourcing in accounting, write to us at connect@finsmartaccounting.com
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Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
