What is a Technical Accountant, and What do They Do?

Who needs a technical accountant?

As any business grows, it needs to evolve. In the beginning this may mean simply moving from a family model to one with hired employees, or moving from handling payroll and taxes yourself to hiring a certified public accountant to shoulder that burden.

But as companies pass a certain point in its growth, compliance with financial reporting requirements becomes more and more technical, and financial data becomes more complex. Even an in house finance team can have a hard time keeping up with changing accounting standards. And someone with the skill set to apply the latest software tools and keep up with changes in relevant accounting standards can easily save your company and other employees time and money--not to mention preventing costly encounters with external auditors.

If you need the other accounting services just mentioned, then you need a technical accountant. Technical accountants have the skills needed to protect the assets of your company, allowing you to focus on your business.

Why You Need Someone With Technical Accounting Skills

A technical accountant commands a higher salary than other accountants, and for good reason. They typically have a higher level of education, because the tasks they undertake are more complex. Technical accountants have the knowledge to ensure compliance with changing regulations; create and use tools to manage and achieve financial goals; and in depth knowledge of best industry practices to ensure sound accounting guidance in whatever field you need.

• Technical accountants are trained in use of whatever technical resource is most relevant for handling your financial data and business administration needs.

  • With the right software, financial records can be kept in such a way that annual financial reports require little more work than the push of a button.

  • Technical accounting memos are a direct, accurate means of communication between the accounting and finance team and whatever other department needs to see the information. They are a crucial means of ensuring internal communication.

• A technical accountant has spent years of training and practice honing the technical skills to be able to achieve your industry's accounting standards efficiently.

• Technical accountants can advise on such complex issues as revenue recognition, financial statements, and best practices for accounting treatment.

• A technical accountant makes an excellent leader for your accounting and finance team. They have the skills and knowledge needed to direct operations in the most efficient way possible, ensuring full compliance and streamlined operations.

• A technical accountant is the best point of contact with external auditors, since your accountant will have all the necessary information and knowledge needed. And since a good technical accountant will have been running the company's operations in full compliance, they can make the audit process as painless as possible.

The Value of Technical Skills

Accountants are an invaluable part of any growing business, spending their whole career assimilating financial data into more useable forms, double checking the date for transactions and analyzing how revenues reflect company goals. They take data from all departments and create vital financial records that comply with accounting standards and also provide valuable insights into which other departments need to improve performance. Accurate financial reporting, solid accounting principles and generation of financial statements are all among the skills that any accountant can offer.

So what does a technical accountant have that any other accountant lacks? Technical accounting skills include all the skills held by most accountants, plus much more.

• They work hard to remain well versed in Generally Accepted Accounting Principles (GAAP) and other current benchmarks of good accounting standards.

• They stay abreast of whatever technical resource becomes available that could be relevant to your industry and specific needs.

• Their knowledge of software tools makes it easy for them to implement new systems that integrate financial reporting and revenue recognition into other employees' daily activities, making financial reporting easy and efficient.

Technical accounting skills are an invaluable asset to any growing company in any industry, and the more complex the business and financial challenges you face, the more vital it is to hire a technical accountant to help you navigate these challenges.