Nowadays, being a professional accountant entails much more than just technical competence. Though financial reporting and tax knowledge are still the bread and butter of the role, greater emphasis is being placed by employers on softer skills that will facilitate better decision-making within the organisation.
ACCA always aims to move in step with the changing role of finance ensuring that its members continue to meet the needs of the profession. Thus, the introduction of the professional skills marks across the Strategic Professional exams aim to reflect the leading position finance now has within the organisation.
From a student's perspective, 20 marks available for professional skills can make all the difference between a pass and a fail. Many students might already be familiar with the professional skills marks, as these were introduced several years ago in the SBL exam. However, ACCA is now broadening the range of papers where these marks are available. Therefore it is vital, for both exam success and your future career, to get these five professional skills right.
Let’s now take a closer look...
Analysis skills
Finance professionals usually use analysis skills daily. In the morning, most of us will be presented with dozens of urgent emails, hence making the ability to prioritise become the key to getting the important stuff done.
“Remember, it’s important to add value through your involvement in decision-making”
Analysis skills help us bring together different sources of information to establish the causes of problems so that an appropriate solution can be found. For example, you can be asked to analyse the financial and non-financial factors affecting a decision. On seeing this, accountants immediately start to gravitate toward financial ratios. This is all well and good, but remember it’s important to add value through your involvement in decision-making. This can only be done if the ratios are commented on so that the significance of the figures calculated can be appreciated by all.
Evaluation skills
It was surprising to learn from the examiner that many students struggle with evaluation skills. The ability to make a balanced judgement is often the main characteristic that distinguishes finance professionals.
As part of our work, we often have to balance the costs and benefits of a proposal. We might also be called upon to objectively assess the risks and opportunities as these might not be apparent to others involved in the decision-making.
To show off your evaluation skills, remember to take into account the implications of the decisions on the organisation and those affected. For example, you might need to evaluate the significance of the control weakness by looking at the extent of disruptions that it will cause.
Alternatively, you might need to evaluate the strategic options available to the organisation. You will need to contrast these by looking at their respective advantages and disadvantages. Sometimes figures can also be thrown in the mix, so don’t be afraid to estimate the financial impact of the decision, even if the outcomes are not yet certain.
Finally, the examiner might also expect you to provide a conclusion or recommendation following a comprehensive evaluation. Remember to be brave, make a decision and stick with it! There is rarely one right answer in real life, thus there is no expectation that everyone will come to the same viewpoint in the exam. As long as you can support your decision with reasoned argumentation, you are sure to get it right.
“Remember to be brave, make a decision and stick with it!”
Communication skills
One of the key means by which members of the finance department can add value to the organisation is by explaining the concepts in a way that others with a non-financial background can understand. For example, you might need to inform the Management Team about the consequences of their choices in a persuasive way. Alternatively, you might need to clarify a difficult concept in a way that is appropriate for the seniority of the audience that it is aimed at.
To facilitate the communication process, you will need to present the information in a particular format, such as a presentation or a press release. Students are often fearful of the presentation (and let’s be honest, very few enjoy being put on the spot while presenting a complex topic), but there is no need to panic.
To make our life easier in the exam, the examiner has introduced Slides functionality in the Response Options. There, you will find a rectangular box to enter the slide content (PowerPoint wizzes will be disappointed about the absence of the animation features that often jazz the whole thing up). This will be followed by another rectangular box for the speaker’s notes.
Commercial acumen skills
Finance professionals are often tasked with translating ideas into practical actions, such as managing projects to deliver desired outcomes. Here, awareness of the wider business context is paramount to ensure that practical details of the industry, as well as organisation-specific issues, are taken into account when resolving problems or pursuing opportunities.
From the exam perspective, you might need to consider real-life situations, such as an organisation underperforming due to fraud or other control weaknesses. Using your commercial acumen, you will need to both identify the causes of the current problems and propose workable solutions. The commercial acumen skill is often difficult for students to master as it encourages them to go beyond the direct study materials and rely on commercial awareness acquired by reading business publications and through practical work experience.
Scepticism skills
Professional scepticism helps to distinguish rights from wrongs and thus maintains the ethical and commercial compass of the organisation on course. Just because we are told certain things (sometimes even by senior directors) that information may not be reliable or trustworthy.
By questioning the opinions and assertions made, you will help build solid foundations on which future strategies can be built. For example, you might be asked to challenge documentation prepared by a junior member of staff as it contains significant omissions which lead to erroneous outcomes.
Practice makes perfect
Hopefully, you are now feeling much more confident about the professional skills that will come in handy in your exams, as well as have the potential to propel your career forward. Therefore, now is probably a good time to put these skills to the test. Whether it is delivering a presentation at work or preparing for your next ACCA paper, make sure that your professionalism shines through!