Business Communication For Accountants

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Business Communication For Accountants

• Presentation for Students of SMPs

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Introduction

• Name
• Firms name
• Exams passed
• How many years in training
• Nature of work handled (Audit, Accounting,
  Taxation, Management Consultancy)

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Workplace Communication

• Interaction with clients
• Interaction with tax authorities
• Interaction at workplace with boss, peers,
  subordinates
• Talking on telephone
• Sending a fax message, email
• Interviewing people at work or clients
• Writing letters, reports, memos
• Receiving guests
• Learning for studies

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Forms of Communication Flowing Through Formal
Channels
Written Executive memos, letters Annual
report Company newsletter Bulletin board
postings Orientation manual
Electronic E-mail Voicemail Instant
Messaging Intranet Videoconferencing
Oral Telephone Face-to-face conversation Company
meetings Team meetings
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Communication Flowing Through Formal Channels

Horizontal Task coordination Information
sharing Problem solving Conflict resolution
Downward Management directives Job plans,
policies Company goals Mission statements
Board of Directors
Upward Employee feedback Progress reports Reports
of customer interaction, feedback Suggestions
for improvement Anonymous hotline
Finance
Marketing
Production
Finance Officers
Marketing Assistants
Factory Operatives
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Accountants (professional) needs

• More emphasis on communication skills - more
  training in English (grammar and spelling),
  composition,technical writing courses (especially
  reports) public speaking
• Thinking and problem-solving skills
• Ability to interact orally and in writing in
  business and social spheres.
• Broaden outlook, develop personality.
• Writing of correspondence, memorandums, informal
  formal reports, also reading speed, reading
  comprehension, oral presentations, listening
  attentiveness responsiveness, correct grammar,
  outline development, inductive deductive
  reasoning, coherence, clarity and conciseness in
  verbal presentation, use of visual and graphic
  aids
• Research indicates world-wide need for upgrading
  of language skills - needs to be addressed in
  Accounting education

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Why Study Communication?

• Your Quality of Life Depends Primarily on Your
  Communication Skills
• You will need it regardless of your career path
• You will use it in every relationship

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Communication and Critical Thinking

• Some communication is surface communication,
  trivial communication--surface and trivial
  communication don't really require education. All
  of us can engage in small talk, can share gossip.
  And we don't require any intricate skills to do
  that fairly well.
• Where communication becomes part of our goal is
  in reading, writing, speaking and listening.
  These are the four modalities of communication
  which are essential to learning and each of them
  is a mode of reasoning. Each of them involves
  problems. Each of them is shot through with
  critical thinking needs.
• Communication is always a transaction between at
  least two logics. The critical reader/listener
  reconstructs the logic of the writer/speaker into
  the logic of the reader's/listeners thinking and
  experience. This entails disciplined intellectual
  work. The end result is a new creation.

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What are the most common ways we communicate?
Personal appearance
Body Language

• Nonverbal
• Verbal

Listening and Reading
Speaking and Writing
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Nonverbal Communication

• Facial expressions/eye behavior
• Gestures and postures
• Vocal characteristics
• Personal appearance
• Touching behavior
• Use of time and space

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Verbal Communication

• Listening
• Reading
• Speaking
• Writing

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• IMPACT OF LANGUAGE AND CULTURE

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Cultural differences in Communication

• In Thailand its rude to place your arm over the
  back of a chair in which another person is
  sitting
• Canadian listeners nod to signal agreement
• Japanese listeners nod to indicate only that they
  have understood

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Cultural differences in Communication

• Your meeting went better than you had ever
  expected. In fact you found the Japanese
  representative for your new advertising agency to
  be very agreeable. He said yes to just about
  every thing. When you share your enthusiasm with
  your boss, he does not appear very excited. Why?
• With the Japanese, yes may not always mean yes
  in the sense we understand. Thy will use the word
  yes to confirm they have heard or understood
  something but not necessarily to indicate that
  they agree with it

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• LISTENING

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What is Listening?
The process of using our Eyes, Ears
and Mind to Understand
Meanings and Feelings.
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Listening vs. Hearing

• Hearing- physical process natural passive
• Listening- physical mental process active
  learned process a skill
• Listening is hard!
• You must choose to participate in the process of
  listening.

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Exercise - Listening

• Who are the people its easiest to listen to?
• What is it about these people that makes it
  easier to listen to them?
• Who are the people you listen to least?
• What is it about them that makes it difficult to
  listen to them?

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Why Dont We Listening

• Uninteresting Topics
• Speakers Delivery
• External Distractions
• Prejudging people

• Self centeredness
• Personal Concerns
• If you are a faster thinker than speaker
• Language/Culture Differences

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Credit Risk

• What is Banks Credit Risk Management Policy and
  Strategy.
• What are the functions of Credit Risk Management
  Committee
• What has the Bank stated about Sectoral Credit
  Policies
• What percentage of financial assets are subject
  to credit risk
• Where is Banks major credit risk concentration
  in the case of loans and advances.

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• READING

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What is the point under discussion

• Net income differs from net operating cash flows
  for several reasons. One reason is no cash
  expenses, such as depreciation and the
  amortization of intangible assets. These
  expenses, which require no cash outlays, reduce
  net income but do not affect net cash flows.
  Another reason is the many timing differences
  existing between the recognition of revenue and
  expense and the occurrence of the underlying cash
  flows. Finally, non operating gains and losses
  enter into the determination of net income, but
  the related cash flows are classified as
  investing or financing activities, not operating
  activities.

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A Banking CompanysNotes to the Accounts

• This represents the balance payable on the
  subordinated term finance certificates, issued
  for a total amount of Rs. (thousand) 800,000 and
  listed on the Lahore Stock Exchange. The
  instrument is unsecured, subordinated as to the
  payment of principal and profit to all other
  indebtedness of the bank (including depositors)
  and is not redeemable before maturity without
  prior approval of the State Bank of Pakistan. The
  rate of profit is based on a floating rate Base
  Rate six months KIBOR plus 1.9 per anum and
  will be paid semi-annually, with no floor and
  ceiling. The floating rate Base Rate for the
  profit subsequent semi-annual periods on the
  immediately preceding date before the start of
  each six months period for the profit due at the
  end of that semi-annual period. During the year
  principal amounting to Rs. (thousand) 320 (2005
  (thousand) 160) was redeemed, however the major
  redemption will commence from the 60th month of
  the issue.

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Reading of Taxation Laws

• 54. Exemptions and tax provisions in other laws.-
  No provision in any other law providing for
• an exemption from any tax imposed under this
  Ordinance
• a reduction in the rate of tax imposed under this
  Ordinance
• a reduction in tax liability of any person under
  this Ordinance or
• an exemption from the operation of any provision
  of this Ordinance,
• shall have legal effect unless also provided
  for in this Ordinance
• Provided that any exemption from income tax
  or a reduction in the rate of tax or a reduction
  in tax liability of any person or an exemption
  from the operation of any provision of this
  Ordinance provided in any other laws and in force
  on the commencement of this Ordinance shall
  continue to be available unless withdrawn.

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What Does This Indicate and What Do You Want To
Discuss With The Management

• The companys financial statements as on balance
  sheet date reflects accumulated loss of Rs.
  850.56 million and negative equity of Rs. 742.06
  million. Companys current liabilities exceed
  current assets by Rs. 385.75 million and total
  liabilities exceed the total assets by Rs. 653.89
  million. Moreover, the Company, after making down
  payment of Rs. 20.049 million and further payment
  of
• Rs. 659 million, is in default in terms of
  rescheduling / restructuring of its long term
  loans as referred to in detail in note 7 that an
  amount of Rs. 37.80 million is overdue in respect
  of first four consecutive installments. These
  conditions indicate the existence of material
  uncertainties

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• SPEAKING
• AND
• CONVERSATION

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Speaking Skills

• Variety of settings one-to-many, small group,
  one-to-one, and mass media.
• Communication to achieve specific purposes to
  inform, to persuade, and to solve problems.
• Competencies needed for everyday life -- for
  example, giving directions, asking for
  information, or providing basic information in an
  emergency situation.

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Elements of Delivery

• VOCAL
• Intonation
• Loudness
• Rate
• Stress
• Pauses
• Gestures
• Eye Contact
• Facial expressions

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Conflict

• A good amount of bad feeling, organizational
  problems, destructive conflict and inefficiency
  results from a lack of skill in the way that
  people communicate
• Good Communication involves techniques that are
  designed to prevent destructive conflict, enhance
  morale and save time and energy
• Other ways of communicating increases friction
  and anger

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Communication Exercise

• Identify a communication problem you have
  experience at work
• Identify your contribution to the problem
• Identify the steps you could take to effectively
  resolve the problem

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Subtle ways to ruin Communication

• You never finish the work on time
• If you had bothered to read the report, you
  would know.
• Manager wants to change the work schedule and
  says
• From now on our hours are 10.00 a.m. to 7.00
  p.m.

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Better ways of Communicating

• It seems that you are having some difficulty with
  timelines. What can I do to help
• Prime hours for our customers are 10.00 a.m. To 7
  p.m. We need to develop a system that will allow
  us to give the best possible service to our
  customers during those hours. Do you have any
  suggestions?

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Crisis Communication

• Top management should get involved
• Setting up of Media and communication Centre
• Providing complete information
• Single person should be responsible
• Show companys concern
• Do not blame anyone
• Do not speculate
• Always answer questions

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• WRITING

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Concise Wording
Revise your messages to eliminate wordiness.
Instead of this
We are of the opinion that
Please feel free to
In addition to the above
At this point in time
Despite the fact that
Try this We think Please Also Now Although
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Wordy Prepositional Phrases
Instead of this
We dont as a general rule cash personal checks.
Students in very few instances receive parking tickets.
She calls meetings on a monthly basis.
Try this We dont generally cash personal
checks. Students seldom get parking tickets. She
calls monthly meetings.
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Long Lead-Ins
Instead of this
This memo is to inform you that all employees meet today.
I am writing this letter to say thanks to everyone who voted.
Try this All employees meet today. Thanks to
everyone who voted.
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Outdated Expressions
Outdated
as per your request
pursuant to your request
attached hereunto
under separate cover
Modern at your request at your request attached se
parately
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Needless Adverbs
To sound more credible and to streamline your
writing, avoid excessive use of adverbs such as
definitely, quite, really, and actually.
Instead of this
The manager is actually quite pleased with your proposal because the plan is definitely workable.

• Try this
• The manager is pleased with your proposal because
  the plan is workable.

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Fillers
Revise sentences to avoid fillers such as there
and it when used merely to take up space.
Try this Two employees should be promoted. Ahmed
and Adil were honored.
Instead of this
There are two employees who should be promoted.
It was Ahmed and Adil who were honored.
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Redundant Words
Avoid unnecessarily repetitious words. What words
could be omitted in these expressions?

• necessary requisite
• new beginning
• past history
• refer back
• serious danger

• advance warning
• close proximity
• exactly identical
• filled to capacity
• final outcome

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Jargon
Avoid technical terms and special terminology
that readers would not recognize.

• Computer jargon
• queue
• export
• bandwidth

• Alternative language
• list of documents waiting to be printed
• transfer data from one program to another
• Internet capacity

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Clichés
Avoid clichés (overused expressions). Substitute
more precise words.
Instead of this
Last but not least, you should keep your nose to the grindstone.
We had reached the end of our rope.
Try this Finally, you should work diligently. We
could go no further.
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Precise Verbs

• Revise your writing to include precise verbs
  instead of general, lackluster, all-purpose ones.

Market researchers said that sales would
improve. What more precise verbs could replace
said?
Market researchers forecasted improved
sales. Market researchers promised improved
sales. Market researchers predicted improved
sales.
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Please contact their sales rep today. What more
precise verbs could replace contact?
Please telephone their sales rep today. Please
fax their sales rep today. Please e-mal their
sales rep today.
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Try this The manager realized that telecommuting
made sense. A job seeker must apply before
May 1.
Instead of this
The manager came to the realization that telecommuting made sense.
A job seeker must make application before May 1.
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Use Gender Neutral Words
Gender Sensitive Gender Neutral
mailman Mail carrier
congressman congressperson
chairman chairperson
spokesman spokesperson
layman layperson
repairman repairperson, mechanic
fireman firefighter
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Positive and Negative Phrasing and Language

• Positive Phrasing
• Tells the recipient what can be done
• Suggests alternatives and choices available to
  the recipient
• Sounds helpful and encouraging rather than
  bureaucratic
• Stresses positive actions and positive
  consequences that can be anticipated.

• Negative Phrasing
• Tells the recipient what cannot be done.
• Has a subtle tone of blame.
• Includes words like can't, won't, unable to,
• That tell the recipient what the sending agency
  cannot do.
• Does not stress positive actions that would be
  appropriate, or positive consequences.

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Examples of Positive an Negative Language and
Phrasing

• Negative Phrasing
• we regret to inform you that we cannot process
  your application to register your business name,
  since you have neglected to provide sufficient
  information

Positive Phrasing Congratulations on your new
business. To register your business name, we need
some additional information. If you return the
attached form, with highlighted areas filled in,
we will be able to send you your business
registration certificate within two weeks. We
wish you success in your new endeavour
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Revise the following sentences to avoid a long
lead-ins, wordy prepositional phrases, outdated
expressions, needless adverbs, fillers, and/or
other forms of wordiness.
We will probably finish in two weeks.
Many brokers are certain that these stocks are
safe.
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Track Changes During Revision Process

• The Track Changes feature in Microsoft Office
  Word is useful when two or more individuals
  collaborate to create and revise a document.

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E-mail Etiquette (Netiquette)
Watch your words Be concise to avoid follow up phone calls Dont make antagonizing or critical comments (flames) Few people like spam (unsolicited e-mails) Nothing is private-anybody may read your message Keep attachments to a minimum-they overload system tax patience Dont use all capital letters
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• Conclusion

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Audit Assignment

• You have been assigned to carry out audit of a
  pharmaceutical company. How will you apply skills
  of listening, reading, speaking and writing to
  your assignment