Sometimes Accounting changes go wrong …………….

I am back with a blog on knowledge. According to me, it has been playing a key role in most of the aspects in any most of people specifically for the professionals. That is why, I am trying to emphasize the same by sharing my experience on the topic regarded “Sometimes Accounting changes go wrong” and hope this time I can make you more richer by knowledge.

It has been observations for long time on the accounting changes happen but go wrong. In the sense, the changes are often ineffective while book keeper or accountants did not properly react or better communicate to them which actually lead to wrong direction or rather I can tell that they (accountants) are not better communicated. So this is nothing but two communications are required for this.

Being an accountant by profession for almost 7 years in the corporate sectors, I have been radically studying that if the knowledge on changes are not properly transferred and given to the care taker(s) of Finance and Accounts department in a company, the company may have to be badly affected in term of financial numbers in the financial statements. In this competitive and cut-throat market, each and every company will have to come up with strong and improved skills sets to tackle the uncertain and unpredictable situations.

By briefing the above context, now we can explain atleast two questions as 1. What makes accounting changes go wrong? And 2. How an accountant helps to make it correct?

Before explaining the above questions, let me tell you one example on the story of successful and unsuccessful (failure) on implementation of accounting changes in two companies. The changes have been successful and significant in one company but not unsuccessful in another. Why and what makes them successful in doing so? I am sure by the giving the below explanations of successful scenario; you can understand the failure (practically speaking) in the changes.

I am very fortunate and eagar to share the reasons behind the success and unsuccessful after implementation of accounting changes with my limited knowledge. I think they are:

Depends on the Individual:

If the individual is an accountant by profession, he or she should ask the indispensable question(s) on the changes wherever and whenever it feels needed. So that there won’t be any disconnects in between accountant and the concerned authorities which/who are supposed to place the accounting changes. As I mentioned earlier, more importantly the accountant should react and better communicate to them (the changes).
Again, the reaction and better communication to them are probably depending on four tenets of individual. These are ability, knowledge, motivation or mental sets. If you look at demographics most of the individuals lack at least one of those four. Having said this, sometimes three features except knowledge may not be changed. The knowledge should/can be learnt and given by training, educating and consulting on how to use accounting information.

Depends on the Concerned Authority(s):

Here concerned authority means a Company who adopts the accounting changes. It (the company) should make sure that at all levels the changes have been properly placed in terms of understanding. In this case, manager has to play a vital role on behalf the company in making the accounting individuals understand on the changes. Again the manager should be encouraged and motivated to do this.

If we sustain the two highlighted points, we definitely achieve the consistent and improved performance, and cost can be reduced to a large extend indirectly or directly. Eventually successful and significant accounting changes take the right direction in regards to effectiveness.

I think I have concluded the topic with very very positive notes on how effectively the accounting changes can be done.

Wish you a happy and useful reading.
Thanks & Regards,
Rakesh

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