By Andy Burrows
When I came out of public practice and went to work for a business in its Finance team, I was fairly naïve. I still had a very black and white view – an auditors view - of accounting. And so, some of the practices of the management accountants were a real shock to me.
My point in this article is that they should be a shock! Finance professionals in business are supposed to tell it how it is, and to be the ones that keep the business honest.
There’s a general joke about the term, “creative accounting” (it’s supposed to be an oxymoron!) But if we’re honest with ourselves in Finance, much of that practice happens with the intention of misleading people. And the only reason we don’t call it fraud is because these things normally involve judgment, and therefore we think we can justify it as just being “very prudent”, or saying, “it’s a grey area”.
In that first job outside...
By Andy Burrows
The Marketing Director of a business I worked for a long time ago said in leading a seminar, words to the effect that, “functions like Finance, HR and IT are just overhead costs. They don’t add value. They don’t bring in new business or sell anything, and they don’t produce anything.”
I didn’t respond at the time, but I remember being quite offended. I felt put down, saying that I was no value to the business.
I was, at the time, I have to say, fairly naïve – this was not long after I’d started my first job outside of public practice.
What follows here are some of my reflections on the relationships between the Finance function and the other parts of a business, from working in more than thirteen different companies over more than twenty years since then.
One thing that has vexed my pedantic brain occasionally over the years is the use of the term...
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