Thinking of a career in accounting? There are some important things to know before you start climbing the ladder. Here, we cover the qualifications you need to become an accountant, the hard and soft skills required and how to choose between working ‘in industry’ or ‘in practice’.

Qualifications you need to become an accountant

A university degree in accounting is a plus, of course, but it’s by no means mandatory. In fact, you can have a degree in another subject entirely—or even no degree at all—and still have a very successful accounting career. That said, there are some specific qualifications you need under your belt to move forward. An Association of Accounting Technicians (AAT) qualification is the minimum typically required of new accountants, although lots of firms offer training programmes which allow you to study for this whilst you work. If you want to become a full-blown chartered accountant in the future, you’ll need to consider one of the following:

• Association of Chartered Certified Accountants (ACCA)
• Association of Chartered Accountants (ACA)
• (Chartered Institute of Management Accountants) CIMA

Other desirable qualifications include Association of International Accountants (AIA), and Institute of Chartered Accountants in England and Wales) chartered accountant status (ICAEW).

What skills are required to be an accountant?

Like any career, working as an accountant isn’t just about your qualifications. To become a fully-fledged financial professional, you’ll need a range of skills which help you deliver a great service for your clients.

Data analysis

Data analysis is the foundation of any accounting-related role, from trainee accountant to bookkeeper and everything in between. You need to be able to generate and analyse reports, spot patterns and anomalies, and create forecasts that drive business growth and influence key decision-makers. Quite the responsibility, right?

Tax competence and compliance

Rules and regulations around how businesses record earnings and submit taxes are subject to change, so it’s super important to remain compliant. No rule-breakers allowed! Competence is as crucial as compliance as you need to understand the ins and outs of all the various processes and protocols. The transition into Making Tax Digital is the perfect example of this as it presents significant changes in how taxpayers report income and pay taxes. No employer will expect you to know everything on your first day though!

Software proficiency

Accountants tend to use various software and apps, so some level of digital competence will go a long way to get you started. Plus, clients will come to you for advice on things like using bookkeeping software, so a good working knowledge will make life much easier.

Problem-solving

Analytical thinking and a critical approach – skills any graduate has in abundance – are a must for accountants. Accounting requires thorough problem-solving, from auditing and forecasting to spotting transactional errors or incorrect bank reconciliations. There’s little room for error in this career.

Time management

Meeting tax-related deadlines and ensuring accounts are prepared ahead of time is one of the main reasons businesses choose to hire an accountant. That means meticulous time management is key in this career to avoid HMRC penalties and the dreaded tax return rush.

Communication and people skills

Anything related to finances and tax can get pretty complicated at times. An accountant needs to be able to relay relevant information to colleagues and clients in ways they understand. This information needs to be concise and will often need to be repeated multiple times, which means communication skills and patience are essential.

Working in industry or in practice

Before you embark on your accounting career, you should decide whether you want to work in industry or in practice. You can swap and change between the two as your career develops but hey, you’ve got to start somewhere. The main difference between the two is that ‘in industry’ means working as part of an in-house finance team, employed within a business. ‘In practice’ means working for an accountancy firm, managing multiple clients at once. Salaries tend to be higher for those working in industry, although trends suggest that work-life balance is better amongst those working in practice. Working in-house is less complex than juggling different businesses in different sectors but working in practice provides variety and diverse practical experience. You’ll also need to figure out whether you want to work in the private or public sector as your career develops. It’s all about exploring, gaining experience, and finding what works best for you.

Article written by The Accountancy Partnership