FBC #18 – Finance: Accounting (Spine) [1 page]

An Operational Concern: Presidents, Vice Presidents, Managers

Accounting is how businesspeople manage their financial situations or the:

Financial threats they need to avoid

Financial obligations they need to fulfill in order to:

Keep their opportunities

Produce new opportunities

Avoid avoidable costs and risks

Financial opportunities they need to exploit,

… in order to fulfill their financial, career and business intentions.

Double-entry accounting is fundamental and will not change.  It includes accounting for both credits and debits in businesspeople’s careers, households and businesses.

IR#3 Carnies use single-entry accounting that messes with businesspeople’s thoughts and moods if they are not careful to pay attention.

But, because IR#4 is the most rapidly changing, complex, competitive and technologically advanced marketplace in history,

… accounting must continually adjust and adapt to rapidly changing:

Accounting is “financial” because it is essential, and used for the purpose of, producing profits and making money.

It is “strategic” because it enables the execution, improvement and design of fresh, new strategies, or action plans.

It is “competitive” because it is used to produce and increase competitive capabilities and advantages, production and value.