Technical accounting is the branch of accounting that focuses on the more technical, internal aspects of accounting. Technical accounting is relatively the same as accounting, but more skill and training is required.
Accounting vs. Technical Accounting
Accounting focuses on analyzing financial data and preparing financial statements and reports for external purposes, such as for investors, auditors, and creditors.
Technical accounting focuses on analyzing the same financial data, but preparing financial statements and reports for those in-house.
Technical accountants should have a working knowledge of accounting, finance, and have a basic understanding of economics to be successful in their role.
They should also be familiar with revenues, assets, liabilities, cash flows, income statements, balance sheets, and general ledgers.
Technical accountants need a strong working knowledge of computer science and technology to be successful in the technical aspects of their career.
Technical accounts also need a working knowledge of generally accepted accounting principles (GAAP).
GAAP is a set of accounting rules, procedures, and standards issued by the Financial Accounting Standards Board (FASB). All technical accountants and accountants in any company in the U.S. must comply with the principles established by the FASB.
The Governmental Accounting Standards Board (GASB) sets accounting rules for state and local governments. Technical accounts should check with their local government to ensure they’re following the guidelines of their given state.
GAAP has ten key principles that every accountant should know and follow. Technical accountants should check FASB’s website periodically for any changes in the GAAP.
Technical accountants need a formal education in accounting, finance, or economics to be successful. Those looking to pursue a career as a technical accountant should acquire a Bachelor’s in either accounting, finance, or economics.
It’s also important for someone who wants to pursue a career as a technical accountant to be well-versed in business, business management, or business administration.
Aside from a formal education in accounting, a working knowledge of business, computer science, technology, and an understanding of accounting principles, a technical accountant needs the following technical accounting skills in order to be successful in their field.
- Accounting software, such as QuickBooks and Excel spreadsheets.
- Process automation software
- Financial software
- AI-powered software
- Computer science
- Financial reporting
- Technical proficiency
- Advanced mathematical comprehension
- Data analysis
- Statistical analysis
- Customer service
- Business management
- Project management
- Strong communication
- Strong attention to detail
- Time management
- Strategic thinking
- Critical thinking
- Analytic thinking