Chapter 16. Ten Accounting Tips for Managers

In This Chapter

• Getting a grip on profit analytics

• Putting your finger on the pulse of cash flow

• Taking charge of your business's accounting policies

• Using sensible budgeting techniques

• Getting the accounting information you need

• Knowing how to talk about your financial statements

Financially speaking, business managers have three jobs:

• Earn adequate profit consistently

• Generate cash flow from profit

• Control the financial condition of the business

How can accounting help make you a better business manager? That's the bottom-line question, and the bottom line is the best place to start. Accounting provides the financial information you need for making good profit decisions — and it stops you from plunging ahead with gut-level decisions that feel right but don't hold water after due-diligent analysis. Accounting also provides cash flow and financial condition information you need. But in order for accounting information to do all these wonderful things, you have to understand and know how to interpret it.