final draft

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).