Reflections on "A way of viewing Business"

A way of viewing Business;

A firm's accounts are their Economic and Business realties, through which the management is trying to show what is really happening in the firm. For instance, investors want to invest in a company which have the capacity to increase its profit in future.  They will know if the firm they are interested in, has that capacity through their accounts.

I think because every business is different, it is not enough just viewing the business reality using accounting entries, there should be someone with accounting knowledge to transform the way we actually see the economic realities of a firm who can then understand what is really going with their business and suggest actions accordingly. That will eventually lead to the success of their business. That is why half of the managing directors of listed companies have some sort of accounting background, because they can easily identify the economic reality of their business and be successful. An example I could bring from my company Woolworths is that the Managing Director and Chief Executive Officer Grant O’ Brien started as an accountant in Purity Supermarkets in Tasmania.