Running head: ACCOUNTING LANGUAGE

ACCOUNTING LANGUAGE
SAUD KHATIB
ANTIOCH UNIVERSITY SANTA BARBARA

ACCOUNTING LANGUAGE

Effective communication within an organization or company and their clientele is

essential in determining its success. Nowadays, this is primarily achieved by establishing a
relevant, comprehensive and clear set of documentation that can be easily understood by all
recipients. Local Market Launch, a startup that helps local companies manage their online
presence, is a perfect example as to why efficient communication is a powerful tool in our
businesses today. Ali Chamas, an employee in the finance and accounting department, introduced
a variety of written communication, namely emails, memos and invoices, as well as their
guidelines, which are used daily to facilitate business transactions. To have relevant, proper
accounting language when communicating within or outside the company is highly essential and
determines company outcomes; knowing which types of language or terms depends on the
scenario.
The primary, most important form of communication Ali uses in his finance and
accounting department is internal- that is, emails and memos between executives and coworkers.
For example, before sending out a contract to a customer, an email must be sent to an executive
asking for his approval on billing terms, payment plan requests and any other major decisions.
For example, XYZ Company asked the sales representative if they could split a prospective
clients invoice of $30,000 into two invoices of $15,000 each with net 90 days payment terms.
The sales representative then sent Ali an email with that request. In view of the amount, Ali then
forwarded that request on to the CFO of the company for approval. The CFOs response was
negative; Unfortunately, we are unable to accept this request in view of how significant the
amount of the order is. We do not accept payment plans when the total exceeds $10,000.
(personal communication between Ali and supervisor, October 7th, 2015) Ali forwarded that

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reply to the sales rep so he could work out different terms with the client. Everyday, supervisors
receive dozens of emails from their employees pending approval for important transactions.
These emails must be drafted in a professional manner and should include all the necessary
information to help the supervisor make a rational decision on the issue. Such information should
include, who the client is, what they are requesting in particular, and if there are any deadlines or
time sensitive material. They may also include examples on how such situations were dealt with
in the past. Ali Chamas and the customer in question need an answer as soon as possible and
without clear, concise and complete communication, decisions may be unfairly finalized,
delayed, or entirely overlooked.
Additionally, Chamas and his colleagues have developed efficient communication
guidelines, appropriate when exchanging emails with one another. They must use the precise
terms belonging to their field, such as accruals, asset turnover ratio, adjusted trial balance,
etc. (personal communication, November 4th, 2015), to maximize their efficiency and accuracy.
In fact, Lunsford, Ruszkiewicz, and Walters (2012) mention how writers need to consider the
field they are working in to accurately and formally express their material. This holds true in the
accounting field as well. Most of these terms would be difficult to understand for ordinary
people, so it is important for these accountants to vary their language depending on who they are
communicating with. However, in the case of communication within their department, these
complex terms are preferred and most often, essential.
While more formal letter formats are preferred when communicating with clients,
suppliers, etc., memos are most often used for direct communication within the office, between
accountants and between departments. Memos are often used to highlight important changes,

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remind staff of important deadlines and to summarize matters that align with required standards
and procedures. It is important to cite relevant authoritative sources as support for the
conclusion. Guidelines for effective email communication apply to memos as well. Memos
should be kept concise by presenting the most important information near the beginning of the
document. They should include a strong and descriptive subject line, and should respect
appropriate levels of diction.
The second important form of communication Chamas uses is in his finance and
accounting department is external communication with customers. Ali Chamas is primarily in
charge of issuing invoices and following up with the customers. This is the first type of invoices
Chamas deals with everyday. This process requires much more than the invoice itself. Many
steps have to be taken prior to sending it out, as well as after it has been received by the
customer. First, the invoice must include information on the services the company has
performed, the billing rate for each service, the total due for all the work performed, the payment
due date and any additional important messages. This will enable the company to correctly
process the order. Additionally, the invoice must be clear enough for the customer to understand
all information, in order to avoid any misunderstanding that may complicate the transaction. In
Graff, Birkenstein and Dursts words (2012), breaking down relevant information effectively
within an invoice becomes a critical skill in communicating with customers, or even other coworkers outside of the finance and accounting department. The who cares? question asks you
to identify an interested person or group, [your audience], the so what? question asks you to
link your argument to some larger matter that readers already deem important (P.97), that is, in
this case, focusing on information that matters to the customer. Then, once the invoice has been

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drafted, an executive must approve it. This is where internal communication takes place. The
invoice is then sent out to the customer. Customers are rarely late with their payments but the
few times they are, follow up communication is essential (Chamas). Effective and timely late
notices are important in these situations. The emailing process has to happen in a professional
manner as to not upset the customer and to maintain the business relationship; however it must
be straightforward enough to reach the desired conclusion. As emphasized by Graff et al. (2012),
the safest move is to be as explicit as possible; if not, you run the risk that readers will
dismiss your text as irrelevant and unimportant (p 100). When Chamas emails customers who
are late on payment, he will clearly highlight that their due date is past, he will offer them a
different payment date, and any other option that may be helpful in encouraging this payment
and concluding the transaction.
Clear, concise and respectful communication, whether verbally or in written, is also
crucial in all situations with a customer. The language used determines how smoothly or
terribly wrong an exchange will go. I asked Chamas how he approaches rude, irrational
customers. I usually try to be nice and attend to their needs. I try to explain the situation as
clearly as I can. Most of the time, a misunderstanding is the only source of our disagreement. If
the problem is still not resolved, I will then offer a refund if possible. Under all circumstance, I
try to make sure the customer remains happy. However, if I am unable to find a suitable solution
that satisfies that customer, I will forward the issue to a manager, who might then decide to cut
off the customer. This outcome is, of course, not favored or common.
A perfect example of such an exchange happened recently. A company did not pay for the
services Local Market Launch provided and completely stopped all communication with the

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finance and accounting department. In fact, after Chamas had tried to contact the said company
numerous times by email and by phone without any success, he left them a polite yet explicit
voicemail, explaining that their account was past due and was now being forwarded to a
collections agency for processing. The customer then sent Chamas a very harsh and disrespectful
email claiming that he was unprofessional and that he lacked the mental capacity to work in
his role (email from customer to Ali, July 16 th, 2015). In view of such an unexpected response
from the company, Ali was forced to forward all emails relating to this exchange to the CFO who
decided, in view of the problems the company had encountered that day and in the past with the
customer, to discontinue the business relationship once his account was sent to a debt collection
agency.
This lead to a question relating to his preferred method of communication. He responded
I usually prefer to use email as the main method of communication mainly due to the fact that
you can leave a record of your communication back and forth and resort back to it when you
need it. If I am in a hurry and need to relay a large amount of information, I will resort to making
a phone call. However, I will always follow with an email, summarizing what was discussed and
agreed upon. As in most fields, written communication is in fact preferred, as it allows any
organization to keep track of decisions, important deadlines and exchanges made between the
company and their clientele.
As for the second type of invoice, it covers what the company is being billed by its
vendor for a good or service it has received. This type of invoice is also reviewed by Ali and
other accountants, to make sure that the items were received at the agreed upon price, before a
payment is made. Then the invoice is sent to the head of the department for approval. Once

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Chamas receives an approval email, a check is cut out and mailed each Monday on a weekly
basis. Invoices are sort of considered to be an indirect professional contract, and reviewing all
elements of an invoice from a supplier is essential in maintaining excellent business
relationships.
Effective business writing isnt restricted to communication between accountants,
departments or with clientele. There is a range of additional basic financial statements essential
to an accounting department that also requires careful and relevant use of the English language.
From balance sheets that summarize what the business owns (assets) and what it owes
(liabilities), to income statements, which are an overview of income and expenses over specific
time period, all documentation in a business play an important role in determining a companys
professionalism, efficiency and ultimately, its success. Any language mistake in such
documentation may result in considerable losses or irrational decisions, and must be avoided.
Consequently, significant time, attention and resources should be dedicated to drafting these
documents, no matter how small or important they may be.
Overall, Ali Chamas, an accountant at Local Market Launch, and the documentation he
deals with on a daily basis (emails, memos, invoices, etc.) demonstrate how clear effective
communication, well-developed business writing skills, polite diction and a professional attitude
are crucial in all areas of his field of expertise. Proper language and word choice tailored to the
audience also help in faciliting all processes Ali Chamas must deal with on a daily basis.
Whether drafting an invoice, an email or a simple memo to his coworkers, Ali Chamas is careful
to include all information necessary, to leave out any unnecessary information, to be as concise
and explicit as he possibly can, and to only use terms that all of his recipients will understand.

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As an accountant major, I believe that effective communication practices are in fact essential in
this field. However, I also endorse the idea that efficient communication is helpful in all matters
we may have to deal with. Ultimately, such communication practices can only make the work of
both parties (the sender and the receiver) easier and more efficient.

References
Graff, G., Birkenstein, C., & Durst, R. (2012). "They say / I say": The moves that matter in
academic writing (2nd ed. P.100). New York, NY: W. W. Norton & Company.
Graff, G., Birkenstein, C., & Durst, R. (2012). "They say / I say": The moves that matter in
academic writing (2nd ed.p.97). New York, NY: W. W. Norton & Company.
Lunsford, A., Ruszkiewicz, J., & Walters, K. (2012). Everythings an argument (p.396). Boston,
MA: Bedford/St. Martin.