From Bean Counter to Business Strategist: The Changing Role of the Accountant

Sponsored by Best Software

A white paper from The Economist Intelligence Unit

Reprinted with permission of The Economist Intelligence Unit

 

Number-crunchers no more, today's accountants are evolving into providers of insight on finance, technology and strategy. Changing business practices and an array of emerging technologies have transformed their role. Accountants are increasingly taking a hands-on approach in guiding company operations and formulating business strategy. But with change comes challenge. Accountants must work hard to acquire the skills that are required to function successfully in a new environment. They must also know which technological tools to use and how to apply them.

Business analysis and strategy: Detecting hidden patterns

 

The ability to translate raw financial numbers into usable business information is now a top priority for accountants. Software is a crucial tool, enabling them to provide speedy analysis at a reasonable cost. Project accounting and business analysis applications are particularly helpful, allowing accountants to monitor resources and returns for specific projects, or for operations company-wide. In addition, sophisticated knowledge management tools can help derive meaning from large volumes of seemingly unrelated data. Most important are analytic applications, which allow accountants to sort through and query huge volumes of data to uncover patterns and relationships, for example in customer behavior, which would otherwise go unnoticed. 

Armed with these business insights, accountants can offer managers and owners guidance on improving productivity and maximizing profitability, as well as on specific business decisions. Acquiring financial and business analysis skills can also empower accountants to offer advice on new and more  profitable directions for the business. "Accountants now have more of a strategic perspective than just a strictly green eyeshade perspective," says Robert Howell, professor of business administration at Dartsmouth College's Tuck School of Business. 

To adapt to their changing role, accountants must acquire skills that will enable them to deliver the new services that businesses need. These skills include: 

-Information delivery. Being able to present critical information in a way that is effective, precise and understandable is vital for any 21st-century accountant. Technology is part of the answer.

-Interpersonal skills. Technology is only half the battle, however. As accountants are increasingly called upon to work closely with a range of managers, suppliers, customers and consultants, developing good interpersonal skills is a top priority-something that, historically, has not been a strength associated with the profession. The ability to interact easily and work with a team can help accountants assume leadership roles.

- Technological competence. It's hard to assist in technology planning without having a high degree of technical knowledge. Developing such competence isn't easy, however, given the wide range of topics that must be covered as well as technology's rapid evolution. In-class or online training courses in areas such as hardware and software products, networking, customer relationship management (CRM) and security can give accountants new technology skills or help them update and enhance existing knowledge. In addition, membership in one or more of the software publishers' affiliate programmes can provide software, training and support for products that clients use. "To stay up-to-date, and to do one's job, one has to be continually educated," says Mr. Howell. 

That said, combining a familiarity with information technology systems and an awareness of an organization's mission, objectives and business environment is an extremely potent approach. It's the ability to match technological knowledge with business understanding that gives technology-savvy accountants a key advantage over other technology experts.