Monday, December 15, 2014

Communication in the World of Accounting

Accounting has been around for centuries and some of the oldest accounts recorded and known date all the way back to ancient Rome where they would account for taxes, crops, and population (Rathbone). At that time accounting was simply recording the count of different categories. As civilizations began to develop and evolve with advancements in technology, accounting followed the trend. Today modern accounting practices have become much more complex, with many rules and regulation created in the late nineteenth century (Schneider). The accounting junior core will teach students all of the rules and technical information needed for their profession, but what is often left out the communication skills needed in their field. Accounting students must know how to communicate both through written documents and through oral, face-to-face interaction in order to successfully communicate with others.

Written Rhetoric
There are two types of written communication for accountants (1) financial statements, and (2) business correspondences. To better understand how each one plays a role in the accounting field, case studies have been provided below:

Financial Statements
John has just submitted the quarterly financial statements for the company. He double checked that the assets equal the liability and equity, the monthly ending account balances match on both the cash flows and bank account statements, and the income statement has the correct revenues and expenses listed. All three statements that he created followed the specific format that is customary to the field. John knows that because the documents were clean, and organized, those who would review the statements would easily find the information they were seeking. John was able to follow a specific form that allowed easy access to information. In accounting, it is imperative that the financial statements are clean and clear so the intended information will be easy for the reader to access. Over the years, accountants have somewhat standardized the look of their financial statements through the Generally Accepted Accounting Principles (GAAP), but there is still some flexibility when it come to the outline. Because of this, choosing the correct template to follow is very important.

Business Correspondences
Hannah needed to write a memo to her accounting team that explained the new system when creating journal entries. There were multiple added or revised steps, and she knew it would be a longer memo. When writing in business, it is important to keep the messages organized, and easy for the reader to understand where exactly in the process they are. Hannah kept that in mind when writing the memo, so she decided the best option was to organize the steps by bullet points. This would create a break in the page which would make the reading seem less daunting to read, and it would make the organization of the memo very precise. Hannah also created an agenda, similar to a thesis sentence, and the beginning of the memo which outlined all that was going to be discussed in the memo. It acted as a table of contents, which helped the reader follow and understand where how the paper was being guided. In the end, because Hannah was able to neatly organize her memo, all of her staff were able to transition smoothly over to the new journal entry system.


Oral Rhetoric
The second type of communication is oral, when people interact with one another in the workplace. Once again, there are two subcategories in this communication, communication during (1) an interview and (2) a meeting / presentation. The following case studies exemplify these two categories:

Interviews
Adam knows that first impressions are everything when it comes to interviewing. Oral communication does not consist of only what you say, but also includes tone and body language. When answering questions Adam made sure that his voice sounded confident and sure of his abilities and previous work experience. He also used a friendly and approachable tone when first introducing himself. Adam also took body language into consideration when preparing. He came ready to give a firm handshake, make direct eye contact, and dress appropriately. During the interview, Adam was very mindful of his gestures and hand movements. He avoided making nervous gestures such as playing with his hands, but also made sure to use his hands and avoid sitting completely still and lifeless. Finally, Adam prepared answers to the possible interview questions that would be asked. When interviewing one weak answer could prevent you from getting the job if your competitor is a great interviewer, and because of this he made sure that every answer that he would give would tell both a past problem that he encountered, and also the solution that he came up with that helped him in the work place.

Presentation / Meetings
Lisa was assigned to give the monthly presentation to the board of directors that explained the financial standing of the company. She knew that some of the directors did not have strong financial knowledge, and that if she were to talk and explain things to them as she would to her accounting colleagues, they would not understand. In order to relay the information Lisa chose to not just show the statements and charts, but to translate them from numbers into words, and explain the occurring trends. She also made sure that her accounting jargon was limited, and that she spoke in simple terms that everyone could understand. She had PowerPoint slides up and ready with information on them that she was going to further discuss.


In conclusion, accounting student must know how to communicate through written and oral rhetoric in order to successfully relay the information that they know to others in the company. Written financial statements and messages, along with oral communication during interviews and meetings / presentations are used daily in this field, and are vital to surviving in the business world. Just like everything in life, in order to master the skills, it take practice and patience. Taking the Management Communications class required for business majors will help further build up the communication skills described above.


Work Cited
Rathbone, Dominic. “Taxation in Roman Egypt.” Classical Review 27.2 (2007): 490-492.
Academic Search Premier. Web. 3 Dec. 2014.

Scheider, Bob. “Accounting Basics, History of Accounting.” Investopedia. Web. 3 Dec. 2014.

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