In 2020 alone, there were over 1.3 million CPA jobs in the US. This in itself means that becoming a CPA is a great career choice. That said, this is one of the most demanding jobs, and if you want to become a CPA, there are certain essential CPA skills you must possess.
These skills will help you thrive and become the best CPA you can be. So, what skills are we talking about? This guide will explore 8 of the most crucial skills every CPA needs to have.
Strong Accounting and Financial Literacy Skills
Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information in making business decisions. As a CPA, you’ll need strong accounting skills to accurately record financial transactions, prepare financial statements, and provide tax advice. Financial literacy is the ability to understand basic financial concepts and make informed financial decisions.
As a CPA, you will need to be financially literate to advise clients on matters such as budgeting, saving for retirement, and investing. The accounting market is quite vast, and you may need to specialize in several different sectors. However, all of them need financial and accounting skills, so you can’t become a CPA without these.
Problem Solving Skills
Problem-solving is the ability to recognize and resolve issues that arise during an engagement or process. When you become a CPA, you’ll deal with matters like identifying accounting errors or suggesting ways for clients to cut costs.
You’ll use your problem-solving skills throughout your career. From auditing financial statements and conducting tax audits to resolving disputes between companies and assisting management in improving company performance. If you know how to solve problems, you’re bound to thrive in this career path even without supervision.
Strong Written and Oral Communication Skills
Written and oral communication skills are the ability to communicate information in a clear, concise, and organized manner. Becoming a CPA means you’ll need strong written communication skills to write reports, provide tax advice, and communicate with clients.
When you become an accountant, you’ll be required to communicate with clients, bosses, and other members of staff on a daily basis. You’ll need to be able to articulate your thoughts clearly, regardless of the situation. This is especially important when it comes to giving presentations or writing reports.
Furthermore, you should be able to listen attentively and understand the concerns of others before responding. If you can’t do any of these things, then it will be challenging for you to succeed as a CPA.
Attention to Detail
In order to become a successful CPA, you need to have the ability to pay attention to detail. Accounting is by far one of the most critical jobs out there are any error could cost businesses millions of dollars. You need to be able to make finances and taxes come together and make sense, which involves bringing very small and intricate details together.
This includes everything from ensuring that all figures in your reports are accurate to keeping track of deadlines. CPAs are often required to work long hours, so it’s important that you are able to stay focused and concentrated during this time. If you can’t, then the chances of making mistakes will increase, which can have serious consequences for you and the business.
CPAs are responsible for managing a lot of data and organizing it in a way that is easy to understand. This means that you must have excellent organizational skills so that businesses and organizations have everything ready and accessible at all times.
You must be able to keep track of everything happening within your company and find information quickly. Furthermore, you need to be able to work well under pressure and meet deadlines. Becoming an accounting is a demanding job, and you need to know that you can keep up.
As a CPA, you will be dealing with numbers on a daily basis. This means that you must have strong mathematical skills.
You need to be able to understand and work with complex financial data, as well as calculate figures accurately. If you can’t do any of these things, then it will be very difficult for you to succeed in this career.
It’s not all about the numbers, and there is so much to becoming a CPA. Apart from exceptional math skills, you also need to be able to work well with different types of people, especially your bosses and co-workers. Even if you choose to work as a freelancer on sites such as Taxfyle, you still need to have people skills.
If you are unfriendly or unapproachable, then it’ll be challenging for you to succeed as a CPA. Employers want someone they can trust but also one they can communicate effectively with each other. You have no idea what kind of people you’ll be working under and to maintain your job, having people skills goes a long way.
Business and Technical Skills
As a CPA, you will be required to work with many different types of businesses. This means that you must have strong business skills. You need to understand the general business environment and how it works in order to advise your clients properly.
Furthermore, you must be able to provide insight into financial information in order for them to make informed decisions. This is one of the most essential parts of being an accountant, so get some business skills if you want to thrive. Moreover, in order to become a successful CPA, you need to have strong technical skills.
This includes knowing how to use accounting software and other financial tools. You also need to be familiar with the latest regulations and changes in the accounting industry. You need to keep up with technology so you can do your job efficiently at all times and keep up with the competition.
Teamwork and Leadership Skills
CPAs often work as part of a team. This means that you must be able to work well with others and be able to collaborate effectively. You must be able to share ideas and work together towards a common goal.
Furthermore, you may be required to lead a team at some point in an accounting department. This means that you must have excellent leadership skills combined with people skills. You need to be able to motivate and inspire others and make decisions that are in the best interest of the team.
How to Become a CPA: All the Skills You Need to Become Successful
So, do you have what it takes to become a CPA? If you possess the skills listed above, then the answer is likely yes. These skills are essential for anyone who wants to pursue a career in accounting. That said, please check out our blog for more informative posts.