5 key skills accountants need in 2024

• Skills in technology implementation will help firms remain competitive. 
• Regulatory compliance will be central, with significant change forecast across financial services.
• Soft skills continue to expand from client management to team management – an ability to manage stressed or disengaged staff will be key.

As generative AI, the Internet of Things and Big Data continue to transform the way we do business, there’s a chance now for accountants already in practice  to upskill before new technology sees another great acceleration. 

At the same time, concepts such as sustainability and human-centredness are affecting how business is conducted, and employers need to come to terms with dealing with a less committed and more stressed workforce. Both of these challenges require adept management fuelled by enhanced capabilities.

To navigate 2024 successfully here are five key areas in which to upskill.

1 Identifying valuable automations with technology tools 

From automating routine tasks to using advanced analytics to streamline financial reporting, accountants need to embrace technology as an ally. Experts suggest investing time in mastering not only accounting software, but robotic process automation (RPA), and intelligent data extraction tools. 

Bruce Penson, managing director of Pro Drive IT says that from line of business and productivity applications to chatbots, these have the potential to save significant time.

They can also transform the way accountants process, analyse and interpret information. 

Dr Mahmoud Gad, Assistant Professor of Accounting at Lancaster University Management School, is currently using Natural Language Processing (NLP) – a form of AI technology – for his research work.

“NLP algorithms can be trained to spot anomalies in financial reporting – unusual phrasing or inconsistencies that might hint at financial misreporting or fraud,” he says. “They can ensure that language in reports complies with regulatory standards and they can categorise transactions automatically.”

NLP can also be used for detailed examination of textual content in financial documents, says Dr Gad, revealing aspects of company performance, market trends and potential risks that are not directly apparent in the numerical data.

Chat GPT uses NLP to translate conversational text – the prompts users enter – into data that its large language model can ‘understand’, or inspect. While other tools will be of use over the coming years, accountants might consider using Chat GPT as a starting point to explore this capability.

Penson suggests updating skills through webinars or seminars, and getting expert advice about the right tools before implementing any technology throughout teams or organisations.. 

2 Managing a more stressed and less committed workforce

Post-pandemic and with many professionals wedded to remote or hybrid working, the workplace requires different kinds of management tools.

“Relationships must be built on trust and now many people are distance working we need to give them a chance to feel a sense of responsibility and a dedication to the team,” says accountant and finance mentor Doug Williamson.

“With the absence of body language and physical connection, more feedback and reassurance are required.”

Williamson says managers should also choose the appropriate platforms for meetings, not always relying on Zoom but scheduling physical meetings too.

Industry leaders recommend training programmes that enhance emotional intelligence, conflict resolution, and team collaboration. Honing skills in empathy and stress management is also key now. 

3 Keeping up to date with regulatory compliance

2024 will be a critical year for multiple significant regulatory change programmes for financial services firms, according to Deloitte UK. 

“The list is daunting, including but not limited to major prudential reforms such as Basel for EU and UK banks and Solvency II and Solvency UK for EU and UK insurers.”

New standards for reporting and assurance around sustainability practices, including both climate impact and climate risk to a business, will also increase the regulatory burden on small businesses and their accountants. 

AI is under scrutiny here too, with financial services firms required to comply with cross-sector and specific regulations that cover risk management and consumer protection, among other factors.

While staying up to date with regulations may seem overwhelming, appreciating the purpose of it can make it less onerous, says Williamson. So too can collating data on regulations and putting it all in one place, as well as leveraging leverage technology for compliance monitoring.

Engaging in regular training programmes or webinars and staying abreast of changes in regulatory frameworks is a necessity to avoid financial and reputational damage.

4 AI-powered data analytics

“This is a key area to watch,” says Penson. “A lot of heavy lifting can be done by AI, [but] organising your data, and making sure it is accurate in the first place, is essential to good results.”

For those new to data analytics, Large Language Models (LLMs) can be a game-changer.

“LLMs, like Google's Gemini and OpenAI's Chat GPT, can automatically generate summaries of lengthy financial documents or translate them into different languages, says Dr Gad.

“They can answer queries, explain financial concepts in simple terms, or even assist in interpreting complex datasets. This makes them an invaluable tool for accountants looking to deepen their understanding of data analytics and its implications for financial reporting and strategy.”

5 Cybersecurity 

“The majority of SME firms don’t take cybersecurity seriously enough,” says Penson. “Leaders should be training their staff regularly about what a cybersecurity threat looks like and what to do about it. Over 90 per cent of cyber-attacks start with an email.”

At least once a year, firms should also complete a risk assessment, says Penson. 

Supply chain security is currently a hot issue, he says, while criminals going after accounting firms are targeting payrolls. Training in data encryption, secure cloud practices and implementing robust cybersecurity policies is crucial to safeguard financial information.