Business Communication For
Accountants
Presentation for Students of
SMPs
1
Introduction
0 Name
0 Firm’s name
0 Exams passed
0 How many years in training
0 Nature of work handled (Audit,
Accounting, Taxation, Management
Consultancy)
2
Workplace Communication
0
0
0
0
0
0
0
0
0
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
3
Forms of Communication Flowing
Through Formal Channels
Written
Oral
Electronic
Executive memos, letters
Annual report
Company newsletter
Bulletin board postings
Orientation manual
Telephone
Face-to-face conversation
Company meetings
Team meetings
E-mail
Voicemail
Instant Messaging
Intranet
Videoconferencing
4
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
Finance
Marketing
Production
Finance
Officers
Marketing
Assistants
Factory
Operatives
Employee feedback
Progress reports
Reports of customer
interaction,
feedback
Suggestions for
improvement
Anonymous hotline
5
Accountants’ (professional)
needs
0 More emphasis on communication skills - more training in English
(grammar and spelling), composition,technical writing courses
(especially reports) & public speaking
0 Thinking and problem-solving skills
0 Ability to interact orally and in writing in business and social
spheres.
0 Broaden outlook, develop personality.
0 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
0 Research indicates world-wide need for upgrading of language skills
- needs to be addressed in Accounting education
6
Why Study Communication?
0 Your Quality of Life Depends Primarily on
Your Communication Skills
0 You will need it regardless of your career
path
0 You will use it in every relationship
7
Communication and Critical
Thinking
0 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.
0 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.
0 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/listener’s thinking and experience. This entails
disciplined intellectual work. The end result is a new
8
creation.
What are the most common ways
we communicate?
0 Nonverbal
0 Verbal
9
Nonverbal Communication
0 Facial expressions/eye behavior
0 Gestures and postures
0 Vocal characteristics
0 Personal appearance
0 Touching behavior
0 Use of time and space
10
Verbal Communication
0 Listening
0 Reading
0 Speaking
0 Writing
11
IMPACT OF LANGUAGE
AND CULTURE
12
Cultural differences in
Communication
0 In Thailand it’s rude to place your arm
over the back of a chair in which another
person is sitting
0 Canadian listeners nod to signal
agreement
0 Japanese listeners nod to indicate only
that they have understood
13
Cultural differences in
Communication
0 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?
0 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
14
LISTENING
15
The process of using
our
Eyes,
Ears and
Mind
to
Understand
Meanings and
Feelings.
16
Listening vs. Hearing
0 Hearing- physical process; natural;
passive
0 Listening- physical & mental process;
active; learned process; a skill
0 Listening is hard!
You must choose to participate
in the process of listening.
17
Exercise - Listening
1. Who are the people its easiest to listen
to?
2. What is it about these people that
makes it easier to listen to them?
3. Who are the people you listen to least?
4. What is it about them that makes it
difficult to listen to them?
18
Why Don’t We Listening
0 Uninteresting Topics
0 Speaker’s Delivery
0 External
Distractions
0 Prejudging people
0 Self centeredness
0 Personal Concerns
0 If you are a faster
thinker than speaker
0 Language/Culture
Differences
19
Credit Risk
0 What is Bank’s Credit Risk Management Policy and
Strategy.
0 What are the functions of Credit Risk Management
Committee
0 What has the Bank stated about Sectoral Credit
Policies
0 What percentage of financial assets are subject to
credit risk
0 Where is Bank’s major credit risk concentration in the
case of loans and advances.
20
READING
21
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.
22
A Banking Company’s
Notes 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.
23
Reading of Taxation Laws
54. Exemptions and tax provisions in other laws.- No
provision in any other law providing for –
a)
b)
c)
d)
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.
24
What Does This Indicate and
What Do You Want To Discuss
With The Management
The company’s financial statements as on balance sheet
date reflects accumulated loss of Rs. 850.56 million and
negative equity of Rs. 742.06 million. Company’s 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
25
SPEAKING
AND
CONVERSATION
26
Speaking Skills
0 Variety of settings: one-to-many, small group,
one-to-one, and mass media.
0 Communication to achieve specific purposes: to
inform, to persuade, and to solve problems.
0 Competencies needed for everyday life -- for
example, giving directions, asking for
information, or providing basic information in an
emergency situation.
27
Elements of Delivery
0 VOCAL
0 Intonation
0 Loudness
0 Rate
0 Stress
0 Pauses
0 Gestures
0 Eye Contact
0 Facial expressions
28
Conflict
0 A good amount of bad feeling, organizational
problems, destructive conflict and inefficiency
results from a lack of skill in the way that people
communicate
0 Good Communication involves techniques that are
designed to prevent destructive conflict, enhance
morale and save time and energy
0 Other ways of communicating increases friction and
anger
29
Communication Exercise
1. Identify a communication problem you
have experience at work
2. Identify your contribution to the problem
3. Identify the steps you could take to
effectively resolve the problem
30
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.
31
Better ways of Communicating
0 It seems that you are having some
difficulty with timelines. What can I do to
help
0 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?
32
Crisis Communication
0
0
0
0
0
0
0
0
Top management should get involved
Setting up of Media and communication Centre
Providing complete information
Single person should be responsible
Show company’s concern
Do not blame anyone
Do not speculate
Always answer questions
33
WRITING
34
Clichés
Slang
Wordy
Prepositional
Phrases
Concise
Writing
Eliminates
Long
Lead-Ins
Outdated
Expressions
Needless
Adverbs
Jargon
Redundant
Words
Fillers
35
Concise Wording
Revise your messages to eliminate wordiness.
Instead of this
Try this
We are of the opinion that
We think
Please feel free to
Please
In addition to the above
Also
At this point in time
Despite the fact that
Now
Although
36
Wordy Prepositional Phrases
Instead of this
Try this
We don’t as a general
rule cash personal
checks.
We don’t generally cash
personal checks.
Students in very few
instances receive parking
tickets.
She calls meetings on a
monthly basis.
Students seldom get
parking tickets.
She calls monthly
meetings.
37
Long Lead-Ins
Instead of this
Try this
This memo is to inform
you that all employees
meet today.
All employees meet
today.
I am writing this letter to
say thanks to everyone
who voted.
Thanks to everyone
who voted.
38
Outdated Expressions
Outdated
Modern
as per your request
at your request
pursuant to your request
at your request
attached hereunto
attached
under separate cover
separately
39
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.
40
Fillers
Revise sentences to avoid fillers such as there and
it when used merely to take up space.
Instead of this
Try this
There are two employees
who should be promoted.
It was Ahmed and Adil
who were honored.
Two employees
should be promoted.
Ahmed and Adil
were honored.
41
Redundant Words
Avoid unnecessarily repetitious words. What
words could be omitted in these expressions?
advance warning
close proximity
exactly identical
filled to capacity
final outcome
necessary requisite
new beginning
past history
refer back
serious danger
42
Jargon
Avoid technical terms and special terminology that
readers would not recognize.
Computer jargon
queue
Alternative language
list of documents waiting
to be printed
export
transfer data from one
program to another
bandwidth
Internet capacity
43
Clichés
Avoid clichés (overused expressions).
Substitute more precise words.
Instead of this
Try this
Last but not least, you
should keep your nose to
the grindstone.
Finally, you should
work diligently.
We had reached the end
of our rope.
We could go no
further.
44
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.
45
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.
46
Instead of this
Try this
The manager came to
the realization that
telecommuting made
sense.
The manager
realized that
telecommuting
made sense.
A job seeker must
make application
before May 1.
A job seeker must
apply before
May 1.
47
Use Gender Neutral Words
Gender Sensitive
mailman
congressman
chairman
spokesman
layman
repairman
fireman
Gender Neutral
Mail carrier
congressperson
chairperson
spokesperson
layperson
repairperson, mechanic
firefighter
48
Positive and Negative Phrasing
and Language
Positive Phrasing
0 Tells the recipient
what can be done
0 Suggests alternatives
and choices available
to the recipient
0 Sounds helpful and
encouraging rather
than bureaucratic
0 Stresses positive
actions and positive
consequences that
can be anticipated.
Negative Phrasing
0 Tells the recipient what cannot
be done.
0 Has a subtle tone of blame.
0 Includes words like can't,
won't, unable to,
0 That tell the recipient what the
sending agency cannot do.
0 Does not stress positive
actions that would be
appropriate, or positive
49
consequences.
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”
50
Revise the following sentences to avoid a
long lead-ins, wordy prepositional phrases,
outdated expressions, needless adverbs,
fillers, and/or other forms of wordiness.
This e-mail message is to
inform you that in all
probability we will actually
finish in two weeks.
We will probably
finish in two weeks.
There are many brokers who
are quite certain that these
stocks are completely safe.
Many brokers are
certain that these
stocks are safe.
51
Track Changes During
Revision Process
0 The Track Changes feature in Microsoft
Office Word is useful when two or more
individuals collaborate to create and revise
a document.
52
E-mail Etiquette (Netiquette)
0 Watch your words
0 Be concise to avoid follow up
phone calls
0 Don’t make antagonizing or
critical comments (flames)
0 Nothing is private-anybody
may read your message
0 Keep attachments to a
minimum-they overload system
& tax patience
0 Don’t use all capital letters
0 Few people like spam
(unsolicited e-mails)
53
Conclusion
54
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
55