> Unless you’re into fraud, “accounting” and “accounts payable” are examples of cost centers. You don’t hire a bunch of innovative people to boost it because it’s not going to ever increase your revenue.
You're so, so spectacularly wrong on this, I am honestly gasping for air.
Accountants are the only people who know if your company is alive or a walking dead. How do you expect to run a company if you don't know reliably and with precision how much money it actually has/makes/spends? Money is the lifeblood of a company! Don't you want to be constantly improving the way you make, spend, and report it to investors and the public?
The biggest companies in the world typically end up with CEOs that come either from sales or from accounting. That is not an accident. Business is about money, and you want smart and innovative people to look after it. Conservative CFOs can be the death knell of a company, among other things.
> You're so, so spectacularly wrong on this, I am honestly gasping for air.
Calm the fuck down. It’s a conversation.
> Accountants are the only people who know if your company is alive or a walking dead. How do you expect to run a company if you don't know reliably and with precision how much money it actually has/makes/spends? Money is the lifeblood of a company! Don't you want to be constantly improving the way you make, spend, and report it to investors and the public?
You entirely missed the point. At no point did I say accounting was not important. I pointed out though that investing more and more into accounting does not boost returns. If that were true, every company could just hire thousands of accountants to boost their profits. This is what separates a cost center from a profit center. Your department provides value in the same way that running water does. It’s critical and you don’t want to skimp on it, but it’s just a part of the business that isn’t helping grow the total market capture.
> The biggest companies in the world typically end up with CEOs that come either from sales or from accounting.
Why would you include sales together with accounting? Sales is precisely the opposite of accounting in this regard because it’s very easy to tie sales directly to revenue. So easy their compensation is literally based on it.
Not so hot take: CEOs that come from accounting and not a customer-oriented profit center are the worst. They know what the numbers look like but are fundamentally disconnected from why customers give money to the business. Seeing the minutiae of the ins and outs of money gives a super false sense of understanding the business. Accounting CEOs are terrible in any industry that requires innovation or getting ahead of trends.
> The accountants will only know this after the fact
The accountants know when your debits have to be repaid, how likely they are to be repaid or refinanced by then, and what the penalty for not doing so will be. I'd argue that, in most cases, nobody employed in the development/production chain will have that information, possibly not even the CEO.
Sure, but accountants will not know the likelyhood of success of a new product or service, how the features will affect sales, the likelyhood of making large sales, the state of strategic relationships, etc. etc.
Yes, they may have models and estimates, but the real information will be in the hands of those involved directly.
Even things like refinancing and the options for doing so can be affected by things like letters of intent from potential large clients, industry validation, etc.
Just knowing numbers and dates isn’t enough.
I’m not saying accounting isn’t important, but it just isn’t the only source of truth.
You're so, so spectacularly wrong on this, I am honestly gasping for air.
Accountants are the only people who know if your company is alive or a walking dead. How do you expect to run a company if you don't know reliably and with precision how much money it actually has/makes/spends? Money is the lifeblood of a company! Don't you want to be constantly improving the way you make, spend, and report it to investors and the public?
The biggest companies in the world typically end up with CEOs that come either from sales or from accounting. That is not an accident. Business is about money, and you want smart and innovative people to look after it. Conservative CFOs can be the death knell of a company, among other things.