Welcome again to the Business Essentials Roadmap.
In Module 1, we covered three subjects at the heart of every business: Business Ethics — Strategy — Management and Leadership.
We looked at Marketing and Sales in Module 2.
And then in Module 3, we took an in-depth look at Operations Management (OM).
Next came the first two pillars of the financial side of business: Economics and Finance in Module 4.
Now, in Module 5, let’s add the third financial pillar and further develop a few analytical business tools. This Accounting and Quantitative Analysis module completes our “numbers discussions.”
Thanks for hanging in there… Let’s go!
Ancient or Modern, Accounting is Historical
Accountants have existed since the beginning of recorded history. Through the ages, they’ve kept track of important quantities — like how much grain was stored in the community’s silo — and how high the river rose in the last great storm.
The tools accountants used to chronicle important business transactions changed with the times. From counting on fingers — to the Chinese abacus — to calculators — to computers.
Some call accounting “the language of business.” An apt description, since companies (especially corporations) need to communicate operating results. And they must do it consistently in a language others understand.
Accounting information provides the means to plan, control, and evaluate operations. Since U.S. corporations are legally beholden to shareholders, corporate beans have to be properly counted!
So the beans are counted, categorized, summarized, and analyzed. How else could you know how the company’s doing?
Accounting Basics Will Help You Function in the Business World