1

Business Communication For Accountants

Presentation for Students of SMPs

2

Introduction

0 Name0 Firm’s name0 Exams passed0 How many years in training0 Nature of work handled (Audit,

Accounting, Taxation, Management Consultancy)

3

Workplace Communication

0 Interaction with clients0 Interaction with tax authorities0 Interaction at workplace with boss, peers,

subordinates0 Talking on telephone0 Sending a fax message, email0 Interviewing people at work or clients0 Writing letters, reports, memos0 Receiving guests0 Learning for studies

4

Forms of Communication Flowing Through Formal Channels

WrittenExecutive memos, lettersAnnual reportCompany newsletterBulletin board postingsOrientation manual

Electronic E-mail Voicemail Instant Messaging Intranet Videoconferencing

OralTelephoneFace-to-face conversationCompany meetings

Team meetings

5

Communication Flowing Through Formal Channels

Finance Marketing Production

Board of Directors

Finance Officers

MarketingAssistants

FactoryOperatives

DownwardManagement directivesJob plans, policiesCompany goalsMission statements

UpwardEmployee feedbackProgress reportsReports of customer interaction, feedbackSuggestions for improvementAnonymous hotline

HorizontalTask coordinationInformation sharingProblem solvingConflict resolution

6

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 skills0 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

7

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

8

Communication and Critical Thinking0 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 creation.

9

What are the most common ways we communicate?

Body Language

Listening and

Reading

Personal

appearance

Speaking and Writing

0 Nonverbal

0 Verbal

10

Nonverbal Communication

0 Facial expressions/eye behavior0 Gestures and postures0 Vocal characteristics0 Personal appearance0 Touching behavior0 Use of time and space

11

Verbal Communication

0 Listening0 Reading0 Speaking0 Writing

12

IMPACT OF LANGUAGE AND CULTURE

13

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

14

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

15

LISTENING

16

The process of using The process of using our our Eyes,Eyes, Ears andEars and MindMind to to Understand Understand Meanings andMeanings and Feelings.Feelings.

17

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.

18

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?

19

Why Don’t We Listening

0 Uninteresting Topics

0 Speaker’s Delivery

0 External Distractions

0 Prejudging people

0 Self centeredness0 Personal

Concerns0 If you are a faster

thinker than speaker

0 Language/Culture Differences

20

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.

21

READING

22

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.

23

A Banking Company’sNotes 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.

24

Reading of Taxation Laws54. Exemptions and tax provisions in other laws.- No

provision in any other law providing for –

a) an exemption from any tax imposed under this Ordinance;b) a reduction in the rate of tax imposed under this Ordinance;c) a reduction in tax liability of any person under this

Ordinance; ord) 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.

25

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 ofRs. 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

26

SPEAKING AND

CONVERSATION

27

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.

28

Elements of Delivery

0 VOCAL0 Intonation 0 Loudness 0 Rate 0 Stress 0 Pauses0 Gestures0 Eye Contact0 Facial expressions

29

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

30

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

31

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 saysFrom now on our hours are 10.00 a.m. to 7.00 p.m.

32

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?

33

Crisis Communication

0 Top management should get involved0 Setting up of Media and communication

Centre0 Providing complete information0 Single person should be responsible0 Show company’s concern0 Do not blame anyone0 Do not speculate0 Always answer questions

34

WRITING

35

ClichésClichés

SlangSlang

JargonJargon

RedundantWords

RedundantWords FillersFillers

NeedlessAdverbs

NeedlessAdverbs

OutdatedExpressions

OutdatedExpressions

LongLead-Ins

LongLead-Ins

WordyPrepositional

Phrases

WordyPrepositional

Phrases

ConciseConciseWritingWriting

EliminatesEliminates

ConciseConciseWritingWriting

EliminatesEliminates

36

Concise WordingConcise 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

37

Wordy Prepositional PhrasesWordy Prepositional Phrases

Instead of this

We don’t 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 don’t generally cash personal checks.

Students seldom get parking tickets.

She calls monthly meetings.

38

Long Lead-InsLong Lead-Ins

Instead of thisThis 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.

39

Outdated ExpressionsOutdated Expressions

Outdated

as per your request

pursuant to your request

attached hereunto

under separate cover

Modern

at your request

at your request

attached

separately

40

Needless AdverbsNeedless Adverbs

To sound more credible and to streamline your writing, avoid excessive use of adverbs such as definitely, quite, really, and actually.

Try this

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

Instead of thisThe manager is actually quite pleased with your proposal because the plan is definitely workable.

41

FillersFillers

Revise sentences to avoid fillers such as there and it when used merely to take up space.

Instead of this

There are two employees who should be promoted.

It was Ahmed and Adil who were honored.

Try this

Two employees should be promoted.

Ahmed and Adil were honored.

42

Redundant WordsRedundant Words

Avoid unnecessarily repetitious words. What words could be omitted in these expressions?advance warningclose proximityexactly identicalfilled to capacityfinal outcome

necessary requisitenew beginningpast historyrefer backserious danger

43

JargonJargon

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

export

bandwidth

Alternative language

list of documents waiting to be printed

transfer data from one program to another

Internet capacity

44

ClichésClichés

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.

45

Precise VerbsPrecise Verbs

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

Market researchers forecasted improved sales.Market researchers promised improved sales.Market researchers predicted improved sales.

Market researchers said that sales would improve.

What more precise verbs could replace said?

46

Please contact theirsales 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.

47

Instead of thisThe manager came to the realization that telecommuting made sense.

A job seeker must make application before May 1.

Try thisThe manager realized that telecommuting made sense.

A job seeker must apply before May 1.

48

Use Gender Neutral Words

Gender Sensitive

Gender Neutral

mailman Mail carriercongressman congresspersonchairman chairpersonspokesman spokespersonlayman laypersonrepairman repairperson,

mechanicfireman firefighter

49

Positive and Negative Phrasing and Language

Positive Phrasing0 Tells the recipient

what can be done0 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 Phrasing0 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 consequences.

50

Examples of Positive an Negative Language and PhrasingNegative

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”

51

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.

This e-mail message is to inform you that in all probability we will actually 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.

52

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.

53

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 Few people like spam (unsolicited e-mails)

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

54

Conclusion

55

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