1. A NEW LANGUAGE
March 16, 2009
I was down at a client yesterday
talking to the Chief Financial
Officer about The Financial Fence
and why we report things the way
we do.
It occurred to me that the fence is
moving away from being a
financial tool to being a
management driven tool which just
happens to include the key
financial figures for a business. It’s driven by management language rather than
financial language when thinking how numbers relate to one another.
So many financial numbers are subject to the thinking of the accounting profession
which often doesn’t make sense to operational business people.
As an accountant I sometimes struggle to forget the way I think and get into the world
where most people think.
Blank looks from people are not new to accountants. I’m sure we’re almost numb to
them because for so long the numbers have remained a mystery to many business
owners.
If we could become more relatable, oozing with understandable information and open
to trying things a new way then we’d probably add more value to businesses.
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