What is Technical Accounting?
Kyle Geers
June 12, 2023
Technical accounting is a branch of accounting that analyzes financial data and past performances to estimate future revenues, costs, and growth. It involves administering resources across departments and focuses on the “bigger picture” of business accounting aspects. Technical accountants require strong knowledge of accounting, technology, and accounting software.
Watch our video overview on technical accounting:
What Does a Technical Accountant Do?
Technical accountants perform these activities:
- Collect, analyze, interpret, and report company financial data
- Conduct audits, find solutions, and implement financial changes
- Compute business tax information, handle accounts, file taxes, and create financial reports
- Study current financial data to forecast future reports
- Maintain financial records and offer accounting guidance
- Work closely with accounting and finance teams to ensure goals are met
What Skills Do Technical Accountants Need?
Technical skills required:
- Superior critical thinking skills
- Strong analytical skills
- Problem-solving skills
- Strong sales skills and product knowledge
- Solid communication skills
- Organization and time management skills
- Advanced Excel proficiency
- Working knowledge of QuickBooks, Oracle NetSuite, Java, SaaS, SQL, ERP systems
- Understanding of GAAP accounting principles
Accounting skills include: bookkeeping, accounting software knowledge, advanced math, accounting principles, business administration, data analysis, and expertise in balance sheets, cash flow statements, income statements, and tax documentation.
Technical accountants must set financial goals considering overall business standing and departmental impacts.
Formal Education
A bachelor’s degree in accounting, economics, finance, or business is highly recommended. Associate degree holders typically qualify only for bookkeeper or accounting clerk positions.
Credentials and Certification
Beneficial certifications include:
- Certified Public Accountant (CPA)
- Certified Management Accountant (CMA)
- Accredited Tax Advisor (ATA) — granted by the Accreditation Council for Accountancy and Taxation
Knowledge
Technical accountants need working knowledge of business administration and business practices. Industry-specific knowledge is also important—for example, agriculture knowledge for agricultural business accounting.
Accounting vs. Technical Accounting
The main difference involves financial reporting focus. “Technical accounting focuses more on the broad spectrum of accounting and noting changes in the financial reporting requirements” in accordance with U.S. accounting standards. Technical accounting has a “macro-focus” while traditional accounting emphasizes micro-level details.
Additional differences include task complexity—technical accounting requires advanced computer skills and deeper technology knowledge. Both fields share similar expertise areas but differ in daily activity focus.
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