Key Concepts and Questions

CHAPTER ONE

Starting with a John Lennon quote is always good.



I have worked in finance for over 10+ years and am such a number’s girl.  I know from my experience that I can tell what is going on in a team from the numbers at the end of the month.  I can even tell when there is strife or disruption within the team, spending will be down, sick leave provision gets reduced, all these elements tell a story.  I am not sure I agree that a firm’s accounts are not themselves the economic and business realities of the firm.

I certainly know accounting can be manipulated.  I have seen managers fudge the timing of income and expenses to make the accounts look better than it is.  I have also seen owners do similar to avoid making a profit at the end of the year to avoid taxes.  If this is so common, what faith can we have in the numbers?  Am I just lucky that my current workplace does not play this game and allows the accounts to be a true representation of the businesses standings?  

It is interesting to read that the majority of the board for Martin’s company, Ryman Healthcare, have accounting degrees.  This is something I noticed about my company’s board, they took all have tertiary educations in business or accounting.  About half of my company’s Executive Team are degree qualified too.  This solidifies for me that I am on the right track with my studies for the career trajectory that I want.

I must admit, I find this writing style very different.  Not at all like the usual prescribed textbooks.  I am not sure yet if I like it.  I do think the chapter needs a good beta as some paragraphs and sentences where doubled.  I am not sure why there is a whole page given to businesses in Yeppoon, followed by another of pictures.  I think the point could be more concisely made.

Wow, who knew there was so much history surrounding the inception of double sided entry?  However, I am very anxious to keep going, to get on with more relevant learning.  The question regarding whether accounting can or cannot be used to understand a business is still being asked, as I have shared I have my own views and I am keen to finding this answer.

Measure of Value.  This concept certainly does show that while accounting may not be the only way to view a business, it is definitely one necessary way.  Is that the key?  Do I need to be more rounded in how I view business?  How will this course help me to do that?  I think I am beginning to see.  Slowly.  I am quite stubborn in my opinions and I’m still reserving my judgement till I learn more….

Much of the basic accounting concepts I am very familiar with.  I work with them constantly in my role as Finance Administrator for a Not For Profit organisation.  I have studied them in past courses.  I am very much hoping that this course delves more into using these skills to better understand a business.  I think I may be quite challenged in my thinking by this course.