Accounting Is the Language of Business
Have you ever walked into a doctor’s office and felt like you entered a different world?
Not only are there instruments and appliances you never see anywhere else, but the people in there seem to use a different language, especially when they talk to each other.
Your doctor could be talking to you in English one moment, then turn to a nurse or physician’s assistant and start using words and phrases you’ve never heard before.
They’re talking about your body, but you’d never know it from the language they use.
It’s because the medical world has its own language to measure and describe all sorts of things we’ve never heard of or probably even thought about, but are happening within us all the time.
The world of business also has its own language, and while it might seem completely removed from your world, in reality it has everything to do with your business.
While your doctor uses terms you’ve never heard of to describe things like your hydration, the strength of your immune system, how efficiently you breathe, etc., these are all ways of measuring how good a job your body is doing of keeping you alive.
The same is true of accounting. The terms might be unfamiliar, but their ultimate goal is to determine and communicate your company’s ability to survive in its current state or to grow.
If you go to the doctor because you’re short of breath, they’ll observe you breathing and maybe run some tests to see what’s causing the problem. When talking to the nurse or another doctor about the results of your test, they’ll probably use language you won’t understand, but it’s essential that everyone on your medical team knows what’s happening in your body, and medical jargon is used to convey that information.
The same is true of accounting.
If your business is struggling to generate enough cash to pay its bills, accounting is needed, not only to identify the problem, but to communicate the problem so it can be addressed.
When the information provided by accounting is analyzed, solutions can be found to generate more revenue.
This is why it’s so important to understand the language of business. It’s too important for you to hand it off to someone else because you don’t understand the lingo.
That leaves you with two options:
- Learn the lingo that comes with accounting
- Get someone who knows the language to help you
That’s where a Bookkeeping Doctor can help.
Not only can we track your company’s revenue and expenses, but we can also communicate with you about what we find in there in plain language so you can understand your company’s financial position.
If you need financial analysis for your business that goes beyond accounting – closer to what a CFO would provide – we can provide those services, too, so you can have all the information available to you to make the right strategic decisions for your business.
If any of that sounds like it would be helpful for your business, fill out this form to get started.