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You probably never thought of yourself as a business accounting type. That's why you majored in Business Management. That's why you are probably working on your MBA, or planning to in the near future. But what you don't know could hurt you. Understanding how the principles of accounting fit into your overall plan for success is worth a few minutes of your time. In fact knowing the basis of this topic and learning how to apply it to management decisions is the basis for Capitalism at its best. Would you vote for a President of the United States who had no clue how to review a balance sheet? Would you feel confident in the leadership of your organization, if the CEO couldn't make a marketing or advertising decision without understanding how the expense would weigh against potential revenue?
Contrary to popular belief, accounting isn't just for bookkeepers or bean counters. As described by Meigs and Meigs, accounting is truly the basis for business decisions. When you look at it this way, it is possible that you'll look at accounting less as a subject and more as a tool for your future. Knowing how to use accounting as a catalyst to decision making is to your advantage. There are plenty of accountants out there who got through college memorizing rules and codes. They understand a debit from a credit. But even many accountants and controllers have no clue what their skill and art mean to someone who is a decision maker in an organization. That's where you come in.
By studying, understanding and practicing the art and science of business accounting in your daily life as a corporate manager, you'll gain an edge to decision-making that many of your peers and competitors will not have. Sound management decisions are always based on economic considerations. Knowing how your next decision feeds the bottom line and every line in between conception to profitability will lead you into a starring role as a business leader who knows what's real and what's merely fantasy.
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