The Heart of Finance

Being an effective communicator can make all the difference in a profession built on numbers. While spreadsheets tell a story, ultimately, it is how accountants communicate those figures and connect with people that determines their impact. At the core of these skills is emotional intelligence (EI), a capability modern accountants need more than ever.

EI is the ability to recognise, understand, and manage the emotions in oneself and others. As technology accelerates, unlocking automation, providing tools for faster data analysis, and handling much of the heavy lifting, EI is becoming far more than a “soft skill.” It’s a competitive advantage.

When it comes to reporting, preparing financial statements, recording transactions, or managing taxes, technical knowledge and attention to detail may be enough – but only up to a point. Without EI, understanding and influencing outcomes becomes much harder.

Accountants need to translate complex datasets into easy-to-digest insights. It’s more than presenting facts; it’s about framing information, so it resonates with the audience’s goals and concerns. Whether leading a finance team, advising a client, or generating business leads, emotionally intelligent professionals communicate clearly and confidently. It is that confidence, rather than just numbers themselves, that clients, colleagues, and stakeholders often act on.

People high in EI create stronger professional connections. Knowing how to respond to emotions with empathy fosters long-lasting trust, essential for sustaining positive relationships. When others feel heard and understood, they are more likely to share critical information, accept recommendations, and maintain long-term partnerships.
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Internally, finance leaders with EI encourage collaboration and alignment. By managing emotions during periods of heightened pressure, such as audits, reporting deadlines, or restructuring, they create an environment where people can perform at their best. Teams led by emotionally intelligent leaders are more resilient, engaged, and productive.

By addressing and managing emotional triggers, adopting a curious mindset, and focusing on building trust through attentive and empathetic communication, accountants can significantly enhance their relationships and boost overall success.

Building EI isn’t just about short-term gains; it also has long-term benefits. Research shows that professionals with higher EI tend to have better client retention and more referrals. In McCarthy’s (2020) PhD research, financial advisors who scored higher on EI received more referrals from clients and experienced higher retention rates. This translates into sustained income and a growing client base over time.
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American Express conducted a study in which financial advisors underwent a year-long EI development programme. This resulted in an average sales increase of 25% across four cohorts. Stress levels among participants decreased by 29%, while positive emotional states increased by 24%. The study concluded that ongoing development of EI skills leads to better performance and lower stress levels.

It’s worth investing in advancing EI through workshops and training courses. However, there are several practical ways in which accountants can cultivate EI and apply it effectively in their everyday work.

• Practicing self-awareness: The development of EI begins with understanding one's own emotions and triggers. It’s crucial to monitor emotional responses, especially under pressure, to apply these lessons and effectively manage the emotions of others.
• Showing empathy: This means trying to see situations from the perspective of others, whether it’s a stressed business owner, a junior team member, or a board of directors.
• Active listening: It’s important to listen attentively to what clients and colleagues are really saying. In case of any doubts, it’s good to ask clarifying questions.
• Speaking with clarity: Ensuring the audience understands requires minimising jargon and focusing on key insights and their implications, rather than overwhelming them with big numbers. Communication should also be tailored to the person, the context, and the stakes of the conversation.

Emotional intelligence isn’t a “nice-to-have” skill anymore; it’s increasingly what sets successful individuals and firms apart. While IQ may help someone enter a profession, EI determines how far they will go once they are there. Strengthening EI is therefore crucial for accountants who want to excel, enabling them to cultivate trust, build stronger relationships, communicate more effectively, and unlock better business results.

Main image: James Woodfall, founder of Raise Your EI, is a highly experienced former financial planner who now advises financial services and firms on how they can leverage emotional intelligence (EI) to improve individual and organisational performance. He is also the author of The Heart of Finance.