I was down at a client yesterday talking to the Chief Financial Officer about The Financial Fence and why we report things the way we do.
It occurred to me that the fence is moving away from being a financial tool to being a management driven tool which just happens to include the key financial figures for a business. It’s driven by management language rather than financial language when thinking how numbers relate to one another.
So many financial numbers are subject to the thinking of the accounting profession which often doesn’t make sense to operational business people.
As an accountant I sometimes struggle to forget the way I think and get into the world where most people think.
Blank looks from people are not new to accountants. I’m sure we’re almost numb to them because for so long the numbers have remained a mystery to many business owners.
If we could become more relatable, oozing with understandable information and open to trying things a new way then we’d probably add more value to businesses.
