Saud Khatib
Academic Writing
23/11/2015
Accounting Language
Every organization or
company requires artifacts (written materials in this case) to communicate in
an effective manner. These artifacts are different depending on what type of
organization it is, and the content they chose to put up. The artifacts have to
be relevant and comprehensive so that people can easily interpret the company’s
agenda and mission. I chose to do some in-depth research on the accounting
communication methods used by a firm that developed proprietary technology
methods, and relationships that allow companies to distribute enhanced business
data to these digital channels very easily and cost effective. This company
with such a broad offering where they operate through human interaction and
online have to make sure that their artifacts are on point.
To get some details on
the artifacts that they use, I interviewed Ali Chamas who works at their
employees at the finance accounting department. We mainly talked about their
writing material, and how they chose to portray it throughout the channels they are using. As
mentioned before, Local Market Launch provide small and medium size businesses
the opportunity to maximize their presence in online searches. They would with
the technology and writing expertise make a company perhaps appear on many
search engines or directories such as Google, Yahoo, Bing, Apple Maps, Yelp
etc.
Ali explained how most of
his artifacts are being portrayed in emails and invoice. He mentioned how there
are different types of emails; the first type of email is an internal email to
an executive asking for his approval on billing terms for a customer. This type
of communication is highly essential because it shows how a manager or
executive haft to have a say before an invoice is issued. Next step would be to
ask an executive for permission to wire money for a payment. This communication
is necessary to avoid any misinterpretations or confusion regarding certain
issues. As for the third, it is mostly aimed at customers. The usual daily
basis issue is a customer being late on a payment. The e-mailing process has to
happened in a professional way; The email was sent out in a
serious tone yet in a respectful manner as not to upset the customer and
maintain the business relationship. This is also a customary practice in
accounting to send out reminder emails when payments are late.
The invoices are split into two types. The
first types are those that company sends out to its customers for payment
covering the services it has provided them with. It is common practice in
business to invoice a customer for a service you have provided him with. This
type of invoice is usually sent to the customers management or accounts payable
department if applicable. The invoice provides the customer with information on
the services the company has performed, the billing rate for each service, and
the total due for all the work performed. It also provides the customer with a
payment due date and any important messages the company might want to add. As
for the second type of invoice, it covers what the company is being billed by
its vendor for a good or service it has received. This type of invoice is
reviewed by some one in accounting to make sure that the items were received at
the agreed upon price before a payment is made. Invoices are sort of considered
to be an indirect professional contract.
Ali and his colleagues has
a way of communicating with each other; they use language that would most
likely be fully comprehended by people within that field. They use terms such
as accruals, asset turnover ratio, adjusted trial balance etc. Most of these
terms would be difficult for ordinary people to understand, so it’s important
for these accountants to vary their language depending on who they communicate
with. Ali probably use these complex terms when writing emails to other
colleagues and executives, but he have to remember to use different language
when communicating with a customer. I asked Ali about how he prefers to
communicate with customers. He responded “I usually prefer to use email as the
main method of communication mainly due to the fact that you can leave a record
of your communication back and forth and resort back to it when you need it. If
I am in a hurry and to relay a large amount of information then I resort to
making a phone call.” For an accountant emails would probably be the best
method of communicating; just like Ali mentioned that it is easy to save and go
back to if necessary.
Being in this type of
profession, it is important to be clear, concise, and respectful when
communicating verbally, or through writing. The language will determine how
smoothly or badly something goes. I asked Ali how he dealt with rude customers,
he said, “ I usually try to be nice and attend to his needs. Sometimes I will
try to explain something and make it as clear and understandable to the
customer as possible. If I can do a refund I would. I try to make sure the
customer remains happy. If the customer continues to be rude, I then forward the
issue to the manager and might then decide to cut off the customer.” It is important to maintain professional at all times in type of
field.
I wanted to know more about
the invoice process, and when customers usually receive so added that to my
question list. Ali mentioned how they send invoices to clients after the month
end, and during the first week of the following month. They strictly go through
every customer and make sure every service have been performed. They then issue
an invoice for that specific customer and send it through email during the
first week of the month. I regret not asking how the invoice is being put
together, because that requires proper accounting language. The invoice
contains of goods and services provided, with a statement of the sum due to
these.
Let’s look more closely at these basic financial
statements made most firms in the accounting department and analyze the story
they’re telling us. The balance sheet is also referred to as the
“Statement of Financial Position,” and that’s exactly what it’s about. This
statement tells the story of what your business owns (assets) and what it owes
(liabilities) as of a given moment in time. During the month, as transactions
are recorded, the impact of each transaction on the assets and liabilities of
the business is also recorded. For example, when you make a cash sale, you not
only record income, but you also record an increase in the value of an asset —
your cash balance. When you incur an expense, you record the amount of the
expense, but you also record the reduction in the value of your cash. (This is
why it’s called “double entry” accounting!). It is highly important to really
stress these definitions in the most comprehensible way, especially in written
format.
In
this area of expertise they value effective business writing, a fact evidenced
by employer screenings and formal examinations that evaluate candidates’
writing skills. Understanding how to apply general accounting principles and
laws, and finance theories and tools is critical but not sufficient. Employers
recognize that the major differences among competitors may often be found in
the degree their employees have mastered writing, speaking, and other
non-technical skills. Accounting and finance professionals spend significant
time writing to document the results of analysis, research, and procedures
performed. A well executed analysis loses its value when not effectively
summarized and communicated in a document.
Memos
generally are used for internal communication, e.g., between accountants and
clients or between departments. Memos are often used to summarize a
professional conclusion that aligns with required standards and procedures. It
is important to cite relevant authoritative sources as support for the
conclusion. Because e-mail often serves as the preferred mode of communication,
the guidelines for effective memo communication apply to e-mail as well. Keep
memos and emails concise, presenting the most important information near the
beginning of the document. Emails should include a descriptive, strong subject
line. Beware: memos and emails become official documents that may be referenced
at a later date and by readers other than your original audience.
Ali
Chamas an accountant at Local Market Launch clearly demonstrated the his
process of using his writing style within the his field of expertise. I think
both him and I can agree that emails is the most efficient way of
communicating. Also that the proper language is used for the right audience
(customers and colleagues).
