Hitendra Patil, President of Global F&A Services at Datamatics Business Solutions, wrote that being an accountant nowadays is no longer about what they do at firms; it's about helping clients make timely, sensible and the right decisions that could make or break a company.
Patil writes for Forbes about the specific functions of accountants that give them value beyond crunching numbers, enumerating the various strengths and functions that make them invaluable assets to companies.
Accountants are the new influencers of business decisions. Their ability to convert raw data into relevant insights and assist clients in seeing the big picture distinguishes accountants from other financial professionals. The role change is part of the evolution of the accounting profession, Patil says.
Looking for an accountant is not a question of finding someone who will balance the books but instead finding a professional who can help businesses overcome problems, make confident decisions and take advantage of opportunities.
Accountants currently have a lot of information at their fingertips, but their skills are derived from their ability to decipher what the data means. This entails not merely inputting figures into spreadsheets. Instead, Patil wrote that it is about finding the story behind those numbers, for instance, whether the sales trend is worrisome or whether expenses are outpacing revenues.
Accountants are the most proficient in knowing the language of business inside and out. Numbers do not lie, but they need a translator. The accountant’s role is to connect the dots and make sense of the raw data. However, many of those dots are in the clients' heads and not in the data and accountants are responsible for connecting these dots into actionable terms for business leaders.
Patil called accountants the “unsung architects of business strategy.” They are the backbone of any firm's long-term strategy and are also usually silent strategists who quietly build the future of the business. Usually, when CEOs speak about a revenue increase or efficiency improvement, the accountant is helping them create strategies to make those goals come to fruition. Accountants have always built the framework supporting business growth through tasks ranging from identifying underperforming businesses or management areas to preparing for acquisitions.
The accountant also assists companies in dissecting financial risk factors. Whether it's a cash flow problem or an unduly risky investment, accountants are the risk managers. All decisions they make help companies avert potential pitfalls or prepare for turbulence.
Accountants are the go-to for any what-if questions in a boardroom or a strategic planning session. For instance, they are asked whether to expand into new markets, reduce costs in some business areas or consider a new pricing model. Each alternative is a thought-leading proposition with associated risks that need to be quantified. The accountant runs numbers and possible scenarios, providing data-driven insight into the decision. The ability to model these outcomes and anticipate roadblocks makes the accountant an integral part of any business strategy.
In today’s information-filled world, accountants are like "digital detoxifiers" who can translate financial information into orderly and actionable insights. If misinterpreted, data becomes noisy and often misleading. However, accountants can zero in on the metrics that lead to business success. They bring clarity so firms can take purposeful action.
Accountants also face challenges. For instance, although they are great at describing what they do, their descriptions almost invariably contain jargon that clients don't understand. Thus, accountants need to make sure clients truly understand their valuable impact.
Patil suggested that, instead of accountants saying, for example, "We can do bookkeeping for you," they can just state, "It's not about having your books balanced to the dot—which, anyway, we will do. That doesn't help you manage your business any better, per se.”
It’s about simply stating, “My job is taking those numbers all the way into deep insights that will avoid cash flow issues, highlight growth opportunities and help you confidently make decisions. It is about knowing precisely what those numbers tell you when it's not too late.”