Do you trust your accountant and finance manager?
A vast majority of them are trustworthy and reliable. However, business history is full of cases where people in charge of the company purse abused their position of trust through accounting manipulation, book-cooking and outright fraud. The essential foundation for financial oversight is an elementary study of financial record keeping and reporting.
Where can you get educated? The purpose of an effective executive education or coaching program on accounting is to give a broad overview of financial record keeping. The topics should include an elementary yet essential overview of the balance sheet, income statement and cash flow statement and their inter-connectivity.
Look for engaging accounting material with hands-on participation through the creation of fictitious company accounting records. Be challenged with exercises to construct and dissect general journal entries to see how it all comes together in the financial statements. You will soon discover the big picture of accounting without getting bogged down in too much accounting theory or complex details.
Community colleges, universities, trade associations and executive coaching services offer basic accounting education. You will have the essential tools after training to understand your company financial record keeping procedures and make informed business decisions from the financial statements. You will be able to have confident conversations with your accounting staff, CPA and tax adviser and be a more financially capable executive.
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