Welcome to our Accounting Blog:
Accounting Building Blocks
If you are a busy owner who does not as yet understand accounting or an aspiring leader of business who lacks knowledge of the science of accounting then this blog is aimed at you.
I interact with many people in positions where they, by virtue of their title, should have a relationship with the business numbers but they do not.
There may be many reasons behind their barrier including:
- A mind-set of not being good with numbers.
- A bad experience with accounting at school or in courses after school.
- No accounting training in your area of study e.g. IT, legal, engineering, medical, HR.
- A sense that someone else looks after the numbers.
- Being too busy to look at a financial reports.
- A lack of understanding or complete disregard for Corporate Governance.
- Never really seeing the need.
- A belief that accounting is boring.
Whatever the reason, the result will be the same. A disconnect between activity and a financial impact, and a desired financial impact and required activity.
Our intention with this blog is to:
- Get you on-board.
- Get you excited about your numbers.
- Get you predicting likely financial outcomes accurately.
- Get you setting time aside for financial reviews.
- Get you to derive value from the business General Ledger and the wealth of information it contains.
Volume 1: Remove the blockage
Business leadership cannot be expected without accounting knowledge. You may have a lack of confidence, a hurt, a FEAR when it comes to numbers and accounting but if you don’t drop whatever it is and whatever may have caused it now, you will not progress.
So how are we going to achieve “removing the blockage”? There are many ways including therapy but the simplest and easiest way is “be the change”. Be different, altered, open, and eager from now.
Good – well done – now we can get going.
BE an effective leader of business. Set some time aside. Collect the current reports available and read them. Don’t read them with your previous mental blocks – read them with your new openness. See them, see the business and ask yourself whether or not you can see the links.
Look out for our next post “Volume 2: The Chart of Accounts” coming soon ……
By Louis Gerke
Development Facilitator – The Ripple Effect
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