In his book, The Goal, Eli Goldratt argued companies are in business to make money. Others have challenged this notion citing personal interests, exploring ideas, responding to market needs, or addressing social responsibilities as reasons to be in business. Regardless of why your company is in business, one thing holds true; if you want to stay in business, you must make money.
The de facto tool for anything related to money and making money seems to be accounting. The question is, should it be? If it's about money, the answer is, "No." In fact, the answer is "Heck no." In the uncensored version of this blog, the answer would be "Hell no!" but there is no such version, so please strike that.
I'm Reginald Tomas Lee. For the last 2.5 decades (25 years for those who haven't yet converted to the metric system), I've been addressing this issue; why managerial/cost accounting is a poor tool to use if you're trying to make money. I'm not an accountant. I don't play one on TV. In fact, I'm an engineer, but I think I've stayed in a Holiday Inn Express (hilarious video) before, so perhaps that qualifies me.
You might be thinking, "25 years? Why haven't I heard about you?" Well, probably because I wasn't trying to push myself or my ideas. That's not how I roll. I was generally writing books and articles, and if you found them, great. I'm sure that approach didn't go over well with my publishers. Over the past few years, there have been several requests from those who have found my research and publications to get the information out to the masses. So, here we are! Yea! Another blog. 🤢 I started a blog a few years ago that was really successful (followed in almost 80 countries), but life at the time had a way of coming before blog posts.
My objective with this blog, and indeed with Business Dynamics & Research and the Cash Flow Innovation Lab, is to help companies make money and help leaders make better decisions that enable their companies to make money (That was probably a run-on sentence. If you followed my blog before, you know I don't spend much time editing. If you want the Queen's English, go here). Contrast this with accounting, which seems to be focused more on how to account for costs than on making money.
My hope is that you and I will learn a lot from each other. I want to challenge you and be challenged by you. I'll also try to make this stuff fun because we all know it can be as exciting as watching paint dry.
So, let's have some fun. Write me, send questions, and challenge me. Check back here for more info, and make sure you follow me on Facebook and Twitter where I'll announce the latest posts, articles, white papers and other news...that is, if I can figure out how they work. Haha.
For more information about the topics covered here, get a copy of Lies, Damned Lies, & Cost Accounting.