Learn the critical points that hinder communication between an accountant and his manager.
The lack of training in accounting and finance among many managers makes communication between the two difficult.
During the Second World War, encryption and decryption machines became popular. The most popular was the one used by the Germans, called "Enigma". The advantage croatian email list of these machines was that the armies communicated with messages that they thought the enemy could not decipher. However, the Allies managed to discover their encryption system by accessing the German army's messages.
While accountants and managers are not, and should not be, at war, communication between them sometimes seems encrypted. Business and financial terminology can be complex for management, while accountants may find it difficult to deduce what management wants if it is not stated in accounting and financial terms.
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Managers' lack of accounting and financial training makes communication with their accountants difficult
It is common for SME managers to not have any studies in Business Administration and Management. It is also not unusual for many managers who run their own businesses to not have higher education. But they should have a minimum training in accounting and finance to understand and comprehend the Financial Statements of their companies.
On the other hand, it is now rarer for an accountant or person in charge of company administration to lack studies. A degree in Business Administration is almost an essential requirement for accessing accounting positions in large companies.
The lack of training in finance and accounting among many managers and directors is a limiting factor when it comes to communicating with their accountants.
In addition to the barrier in terms of training, the worlds in which they move are diametrically opposed. Management is focused on the operations of the business and accounting on the numbers that emerge from invoices, bank statements, payrolls, etc. and the company's financial statements.
Start of marked textTweet it! Why do accountants and managers seem to speak different languages? Crack the keys to this “encrypted communication.”End of marked text
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Differences between the accountant and the manager that make communication difficult
Both profiles are usually antagonistic . Managers tend to have more commercial profiles and are more focused on business growth, while the others are more analytical.
Accountants often bring bad news : tax payments, unprofitable sales, cash flow difficulties due to excessive credit to clients, etc. For many managers, they are a "necessary evil" to meet tax and commercial obligations.
Traditionally, managers focus more on turnover , while accountants look at the income statements, seeing the overall performance of the business.
Management thinks that by selling, there must be liquidity , while accountants focus more on cash flows and average collection and payment periods. You can sell a lot, but if you sell without profit and if you pay before you collect from your customers, the company can find itself in serious trouble.
Management likes to meet with sales teams more than with the accountant . The latter is often more boring, as the topics to be discussed are, at best, a bore for the manager or administrator and, at worst, the figures produced by the accounting department can reveal poor management.
