Can one lead a business without understanding accounting?
As students, amid daily life, you need to be aware of the balance or imbalance of money that comes in and money that goes out. You need to ensure that income covers expenses. Achieving a balance of money received and money spent is just as important in managing a company. In government agencies also, it is important to know how much money comes in, how much is spent on public projects, and how to make ends meet. From households to enterprises to entire nations, in all cases, accounting is indispensable for achieving a balance between income and expense.
Many executives within large enterprises in Japan approach management without understanding the accounts. Fundamentally, though, the person at the top must understand the accounts. Within today's complex global economy, it is essential that we grasp the state of the business accurately and make sure-footed management decisions. To do this, we must be well-versed in accounting principles and processes.
Kyocera Management Studies Course at Kagoshima University, Faculty of Engineering (December 11, 2002 & July 7, 2003) Summary