But if that's true, why are so few executives fluent in the language? Some leaders try to get by without being able to read a financial statement. But at some point you have to provide financial justification for what you're doing, and you have to make decisions based on numbers that come from other people. If you don't know what you're looking at, and you don't know the right questions to ask, your effectiveness is diminished.
It's not trendy. Accounting isn't a hot topic. But it's the language of business, and you have to learn it. You need to make internal economic decisions, and what you have are financial accounting numbers that are driven by accounting rules. You need to know how they're calculated and have a way to evaluate them before you consider basing a decision on them.
Accounting is backward looking. Financial statements are snapshots of what has already happened. You may need to go beyond those numbers and get more data to get a more accurate picture of what you can expect to be true in the future.
For more information on ELSC's financial workshops, contact us at (586) 461-1400 or email@example.com .