Business Communication For Accountants Presentation for Students of

Business Communication For Accountants Presentation for Students of SMPs 1

Introduction 0 0 0 Name Firm’s name Exams passed How many years in training Nature of work handled (Audit, Accounting, Taxation, Management Consultancy) 2

Workplace Communication 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? Bo dy La ng u ag al n rso ance e P ar pe p a e 0 Nonverbal nd a ing g n te adin s i L Re 0 Verbal Sp eak i Wr ng an itin d g 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 0 Uninteresting Topics 0 Self centeredness Speaker’s Delivery 0 Personal Concerns External Distractions 0 If you are a faster thinker than speaker Prejudging people 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 60 th 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 0 0 0 0 VOCAL Intonation Loudness Rate Stress Pauses Gestures Eye Contact 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 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 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. Two employees should be promoted. It was Ahmed and Adil who were honored. 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 export transfer data from one program to another bandwidth Internet capacity list of documents waiting to be printed 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 your business registration certificate within two weeks. We wish you success in your new 50 endeavour”

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 Many brokers are quite certain that these stocks are completely safe. 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