Well, yes and no. Having the proper tools can help a lot, but you can make a very attractive cake without anything "fancy."
Some basic tips:
Make sure your cake is level. If you're doing a layer cake, use a long serrated knife and slice the domed part off (it's good for snacking!) so that everything is flat.
Put your cake on appropriately-sized cake board. You can get these at craft stores like Michael's. For a two-layer cake, place the first layer cut side down on the plate. Add your filling. Piping a "dam" of icing along the outside edge of the bottom layer if you're using a fruit filling will keep it from leaking out). Place the second layer cut side down on top of the bottom one and even up the sides. This will ensure that the top and sides of your cake (provided it came out of the pan clean!) will be nice and smooth.
Before icing/finishing the cake, put it in the fridge or freezer. NEVER try to frost a warm/hot cake...it will melt the frosting. The fridge/freezer will help firm it up.
Always do a "crumb coat." This is the secret. Dust off as many crumbs/loose pieces as possible. Just gently use your hand. Then ice the cake with a THIN layer of THIN frosting. Thin out part of your frosting with some milk. Then thin that part a bit more. It shouldn't be watery, but it should be smooth and very spreadable. No one is ever going to see it, so don't worry. The biggest mistake I see is people using icing that is WAY TOO stiff. You're just asking for it to rip up the cake as you spread it if you use thick/stiff frosting.
Ice the cake all over and don't worry if it looks bad and is shows crumbs. After you've iced the whole cake, put it BACK in the fridge to set up for a while. Once it's set, THEN you can use the [b]slightly[/b] stiffer frosting to icing the cake. The "crumb coat" basically seals in the crumbs and then you won't have those problems of seeing them in your finished cake.
Use way more frosting than you think you need. Trying to do it too thinly can peel the cake. Do the top and then the sides. Use long strokes with the spatula...don't lift up in the middle of the cake, because it'll take the frosting with it.
Use a LONG spatula for smoothness. If you have a turntable, great. If not, put the cake on top of something you can turn, so you can move the spatula around easily.
Toasted coconut, cake crumbs, nuts or sprinkles can cover up a multitude of sins! Press any of them into the sides of the still un-set icing on the cake and it can make it look very professional.
Hope some of these tips help you out!
I'm about to start work on an internet/web cooking/pastry show and we'll be covering stuff like this. I'm not a pro, but I've been doing this for a while and have a good sense of what home bakers like and want to be able to do.[/i]