Importance of data and digital skills for accountants

Written by Daniel Clark FCA, Head of Technology Professional Development at BPP University School of Technology

Last year, BPP surveyed 1,500 professionals and asked them to identify the skills they thought were most important for those in their organisation to develop over the next five years and unsurprisingly, data and digital skills were amongst the top of those chosen. Let’s take a closer look at these skills and why they are crucial for accountants.

Data is an old concept, but it was supercharged in the 20th century by developments in computing technology. Data could now be generated, processed, and used in ever greater quantities and at ever greater speed. In 2020, IBM research found that 150 trillion gigabytes of data will require analysis by 2025, and that a staggering 2.5 quintillion bytes of data are created every single day.

Data is ‘big’, and this trend is accelerating and transforming our world in numerous ways. First of all, let’s delve into what exactly data and digital skills are.

What are data skills?

Data skills include extraction (whereby you collect or retrieve data for processing or storage), trend identification (collecting data and looking for patterns), visualisation (the display of data in the form of charts, diagrams, and other formats), security (the protection of data), and analytics (examining and interpreting data to support growth and decision making within an organisation).

What are digital skills?

Digital skills are essentially the skills you will require to use and utilise digital devices, applications, programmes, and systems in order to share information and work efficiently in the developing digital era.

Why are these skills crucial for accountants?

Occasionally there is talk of accountants being replaced by data scientists or even machines, but we think this is very far from the case. What will need to happen though, is a shift in the skillset of accountants. Understanding how transactions are accounted for and reported, how to undertake financial analysis and all the other core skills of accountants are still needed. But we think it is possible to see that there are two types of changes required for accountants to add as much value as possible to their employers and their careers.

Understanding and utilising technology tools

A good understanding of technology tools and keeping up with new ones is essential. Microsoft Excel remains the bread-and-butter tool for most accountants, and it needs to be second nature, including some of the more advanced tools like Get & Transform, PivotCharts, slicers, and macros. However, Excel is slowly being replaced (or at least supplemented) by other tools, notably Power BI, which also needs to be in an accountant’s toolkit. Aside from specific data tools, accountants also need to understand general purpose technology tools such as Power Automate. The good news is that these are getting easier and easier to use. They will of course be replaced in turn, but the ability to master new tools as they develop is in itself an invaluable skill, and like all skills, requires practice.

The ability to use professional judgement

Aspects of finance work that are rule-based and repetitive will increasingly be automated. Although this may seem like a negative, it actually increases the importance of skills which only humans can exercise. Machines can pick out anomalies and maybe even write financial commentary, but they cannot exercise professional judgement about the way to account for a complex transaction, balance the tax risks involved in a situation, explain findings in a persuasive way to a client or colleague, or tailor advice that is relevant to an organisation’s financial situation. A recent piece of research by Burning Glass and BHEF concluded that the most employable and successful people in the modern world not only have ‘Digital Building Blocks’ (skills with technology tools), but also have ‘Human Skills’, in dealing with people and ‘Business Enablers’, which bridge the gap between the two, such as project management and business process.

Your strategic talent partner

BPP is unique in combining deep expertise in training and supporting accountants with a dedicated School of Technology. Bringing these two together, we have created a range of courses which can support your accountants in adapting to changing technology, helping them add value to your organisation, and future-proof their careers.

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About Daniel

Daniel Clark FCA has many years’ experience in finance, management and HR roles and has worked in professional education since 2007. He currently manages our portfolio of technology-related short courses, working closely with corporate clients to design programmes addressing the need for improved digital skills. He is currently conducting PhD research into the development of digital literacy and digital skills, with a particular focus on accountants.