Communications of Accounting

Abstract

In this paper, you are going to learn about the struggles in communication amongst accountants and how much communication is actually being used. Accountants deal with communication struggles everyday between clients, employers, and investors. Communication barriers that are going to be discussed in this essay are the differences in perception, distractions, differences in interpretation, and inappropriate use of expressions. Accountants struggle with communication because when they speak to one another, they can talk however they would like and they know what is going on, but when they talk to an investor, they have to be able to tell them what is going on as well. An accountant cannot speak to potential investors, clients, or even their employers in accounting terms. They have to be able to write emails to everyone that needs to be informed of any changes in profits or expenses and they have to make sure that everyone will understand it.

Managerial Accounting is not like most regular accounting. It focuses all of its attention to inside the building rather than investors, creditors, and everybody else outside of the business. In managerial accounting, you are creating the journals and schedules for your boss, employees, the CEO, etc. They help to plan, direct, and control the business to make the company more profitable. As the financial accountants deal with strictly financial data, the managerial accountants are focused not only on economic and physical data, but also on the financial data of the company as well. In addition, as a managerial accountant, you are not regulated by anything except the value-added principle.

Accounting seems like a boring profession. You may think all they do is sit there and crunch numbers all day, and you may be wondering, what kind of communication can they possibly have between one another? The truth is there is plenty of communication going on in an accounting firm. Accountants must figure out how they communicate their work to clients, managers, and how to put it all in writing. A few communication barriers that exist within firms are differences in interpretation, inappropriate use of expressions, differences in perception, and distractions. Accountants must follow the generally accepted accounting principles (GAAP) which changes from time to time. They must stay up to date with the new guidelines as well as trying to find ways to improve their communication skills.

In a business, all of the accounting work is critical to keep the company thriving. Someone always looks at each financial statement whether it is the manager, or the company’s investors. Every detail needs to be accurate and kept up to date with all guidelines and company records. Financial statements allow future investors to decide whether the business is successful or not. Any errors can break that interest immediately and any communication errors