Why Communication Is the Most Important Leadership Skill for CPAs
As a CPA, technical skills may get you in the door, but communication skills will determine how far you go. Leadership in accounting firms isn’t just about expertise in tax codes or financial statements, it’s about how effectively you communicate with direct reports, peers, and firm leadership. The ability to clearly convey ideas, provide feedback, and build relationships is what sets apart the CPAs who remain in the ranks from those who rise to leadership.
Communication and Leadership: The Connection
At its core, leadership is about influence, and influence relies on communication. If you can articulate a vision, provide constructive feedback, and navigate difficult conversations, you will gain the trust and respect of those around you. Conversely, poor communication creates misunderstandings, weakens collaboration, and limits career growth.
CPAs who communicate well stand out because they create clarity in complex situations. Whether you're explaining financial data to a client, giving guidance to your team, or presenting to firm partners, your ability to tailor your message to your audience determines your effectiveness as a leader.
The 4 C’s of Effective Communication for CPAs
A practical framework for improving communication in CPA firms is the 4 C’s: Clarity, Conciseness, Confidence, and Connection. Applying this approach will enhance your communication with direct reports, peers, and firm leadership.
1. Clarity: Be clear about your message to avoid misunderstandings.
Example: When providing instructions to a staff accountant, instead of saying, “Double-check the numbers,” say, “Reconcile the revenue figures with the bank statements and verify any discrepancies over $500.”
Impact: Reduces confusion, minimizes rework, and ensures accountability.
2. Conciseness: Get to the point without unnecessary detail.
Example: When presenting to partners, avoid over-explaining minor details. Instead of, “This variance occurred because of a mix of timing issues, some accounting errors, and a new client policy,” say, “The variance is primarily due to timing differences and a new client policy, which we’ve accounted for in the forecast.”
Impact: Saves time, enhances credibility, and improves decision-making efficiency.
3. Confidence: Speak with authority and conviction, even when discussing uncertainties.
Example: When advising a client, instead of saying, “I think this strategy could work,” say, “Based on our analysis, this strategy is the best option given your tax situation.”
Impact: Builds trust, reassures stakeholders, and establishes leadership presence.
4. Connection: Adapt your message to your audience and engage them meaningfully.
Example: When coaching a junior accountant, instead of giving generic advice like, “You need to work on your analysis,” say, “I noticed that your variance analysis identified the issues, but it didn’t include recommendations. In leadership roles, we need to go beyond numbers and suggest actions. Let’s work on developing that skill.”
Impact: Strengthens relationships, enhances learning, and increases team engagement.
By keeping the 4 C’s in mind, CPAs can communicate more effectively and build stronger professional relationships.
Communicating with Direct Reports: Clarity and Growth
Managing staff accountants and other direct reports requires clear expectations and regular feedback. Your ability to communicate directly impacts their performance, morale, and development.
1. Set Clear Expectations
Ambiguity is a productivity killer. When assigning work, ensure your team understands the purpose, scope, deadlines, and quality standards
Clarity: Ensure directions are specific and actionable. Instead of saying, “Check these financials,” say, “Review the client’s expense trends, flag anything unusual over 10%, and summarize your findings in a report by Thursday.”
Conciseness: Avoid overloading them with unnecessary information. Keep instructions streamlined.
Confidence: Deliver expectations assertively to build trust in your leadership.
Connection: Ask them to summarize what they understood to ensure alignment.
2. Provide Regular Feedback
Many CPAs only give feedback during formal reviews, but real-time feedback drives improvement. Using the SBI (Situation-Behavior-Impact) model, you can provide structured feedback that is clear, concise, and builds confidence in direct reports.
Situation: “In today’s client meeting…”
Behavior: “You presented the findings without pausing for questions.”
Impact: “That made it harder for the client to digest the information. Next time, pause after each section to check for understanding.”
Connection: Invite them to reflect on their performance and discuss ways to improve.
3. Build Trust Through Transparency
Your direct reports need to know where they stand. If someone is performing well, acknowledge it. If they need improvement, tell them early so they have time to correct course. Transparency fosters accountability and motivates your team.
Clarity: Be upfront about performance expectations and areas for improvement.
Conciseness: Deliver feedback in a way that is direct but constructive.
Confidence: Encourage them to take ownership of their development.
Connection: Show that you care about their professional growth through open dialogue.
Communicating with Peers: Collaboration and Influence
Your colleagues—whether in your department or across the firm—are key to your professional growth. Strong peer relationships lead to better teamwork, knowledge sharing, and opportunities for career advancement.
1. Master the Art of Constructive Dialogue
When working with peers, disagreements are inevitable. Instead of avoiding them or becoming defensive, approach them with curiosity.
Clarity: Clearly articulate your perspective without ambiguity.
Conciseness: Stick to the key points when discussing differences.
Confidence: Avoid hedging language like “maybe” or “I think.” Instead, state your position with certainty.
Connection: Acknowledge their viewpoint to foster a productive discussion.
Example: When working on an audit and disagreeing with a colleague’s methodology, instead of saying, “I don’t think this is right,” say, “I see your point, but I noticed a discrepancy in your projections. Have you considered this factor?” This keeps the focus on problem-solving rather than personal disagreement.
2. Advocate Without Alienating
If you need to push back on a colleague’s approach, frame your input as a shared goal.
Clarity: Focus on mutual goals rather than personal viewpoints.
Conciseness: Avoid unnecessary justifications.
Confidence: Speak assertively but respectfully.
Connection: Frame disagreements as a shared effort to improve outcomes.
3. Be a Thought Leader
Effective communication isn’t just about responding well; it’s also about proactively contributing ideas.
Clarity: Offer insights that are well-researched and directly applicable.
Conciseness: Keep your contributions to meetings sharp and relevant.
Confidence: Present your expertise without hesitation.
Connection: Engage colleagues in discussions rather than just stating your opinion.
Communicating with Partners and Firm Leadership: Presence and Persuasion
If you aspire to make partner or take on a leadership role, your ability to communicate with firm executives is critical. Senior leadership evaluates potential leaders based on how well they articulate ideas, influence firm direction, and navigate high-stakes discussions.
1. Speak the Language of Leadership
Partners and firm leaders focus on big-picture thinking like profitability, risk management, and strategic growth.
Clarity: Get to the point quickly with key takeaways.
Conciseness: Provide only necessary supporting details.
Confidence: Deliver your message decisively.
Connection: Align your insights to firm-wide impact.
2. Learn to Manage Up
If you’re preparing a report for a partner, consider what questions they might have and address them proactively. If you identify a potential risk, don’t just bring up the problem, offer solutions.
Clarity: Anticipate leadership’s needs and address them proactively.
Conciseness: Present solutions succinctly.
Confidence: Show that you can handle complex issues independently.
Connection: Frame your proposals as benefiting the firm.
3. Develop Executive Presence
Executive presence is a combination of confidence, clarity, and composure. When speaking with firm leadership, be direct, maintain eye contact, and avoid filler words like “um” and “you know.”
Clarity: Be articulate in high-pressure conversations.
Conciseness: Remove filler words and unnecessary context.
Confidence: Speak with assurance, even when discussing uncertainties.
Connection: Adapt to the communication style of leadership to build rapport.
Conclusion
Communication isn’t just a soft skill. It’s the foundation of leadership. By using the 4 C’s framework and the SBI model for feedback, CPAs can enhance their leadership presence, improve relationships, and accelerate their career growth.