Are you listening? We are each familiar with the phrase, “Accounting is the Language of Business” but what does that really mean?
I know of two families who have grown children each of whom is deaf. In both families, the parents choose to not teach their deaf child or learn for themselves sign language. Only now that their deaf children are young adults and learning to sign on their own are they are also beginning to learn sign language.
For me, it is truly sad to love and raise a child never learning to fully communicate and understand them. I equate this to a business. The language it speaks is accounting, and we need to listen to it. How often should you speak with a child? Yearly is obviously not enough. It should be daily, weekly, monthly. And so it is with our clients.
Of course, we are spending the time recording the transactions within the business. It is with that information we are then able to tell the story of what happened in the company. But there is much more we can do to help our clients become profitable and successful.
I am often asked, what is the difference between bookkeeping, accounting and the work of a CPA. In its simplest form I explain it accordingly:
CPA’s can do one thing everyone else cannot, they can audit and verify the work of the others. They can certify financials.
Bookkeeping is the recording of all transactions up to and preparing the financials, the P&L, income statements and balance sheets.
Accounting is where it all comes together. The accountant is the one telling the story of the business. They point out the trends, they know the ratios and can foretell the future. Their job is to understand the past to help the clients and/or employer prepare for the future.
Some may try to define each role based on training, education, degrees, certifications or even experience but in reality, it is best defined by what is done. I know too many CPA’s that only do write-up work and are only providing bookkeeping services. Are they happy and profitable, yes. Accountants, they are not.
Helping the client understand their business so that they can make more intelligent business decisions is the role of a “Profit and Growth Expert”. As such the accountant finds their voice to effectively communicate to their clients and/or employers the information needed to take the business further away from the RED and into the BLACK. Learn some of the tips and tricks that can be used to help quickly put a struggling company In The Black.
Red to Black is a comprehensive strategy guide for you to take an unprofitable client and turn them around in just 30 days.
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Case studies showing the principles in action
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If you've ever seen a client in distress, then this is a must read.
The more we can help businesses look forward with the wisdom to make more intelligent business decisions than dwell in the past we transition from many could see as the necessary evil in business to become an asset for success, their “Profit and Growth Expert”.
Become the premier accounting service in your area offering a proactive approach to accounting. We need to put profit first while increasing the value of the businesses. This is the role of a true accountant, a profit and growth expert who helps take businesses from Red to Black.