A miscommunication by an accountant that leads to a client making a costly mistake or losing business can result in a liability claim. Accountants must be able to communicate effectively both orally and in writing. So what is “effective communication” meaning in accounting? Here are some skills accountants should possess that lead to effective communication.
An essential accounting communication skill is conciseness. People are busy and may not take the time to wade through a lot of detail, especially if they feel much of it is unnecessary. Keep reports and communications to the point in as few words as possible without skipping any vital information.
Use of Jargon
Not all business professionals are fluent in financial jargon. An accountant must recognize when they are using terminology that might be misunderstood.
Misunderstanding by an accountant can happen just as easily as by a client. Accountants need to be just as effective listeners as they are communicators. Effective listening can help ensure accountants and clients genuinely understand one another.
Effective communication meaning in accounting is no different than in other professions. However, ineffective communication by an account can easily lead to a liability claim. Accountant Professional Liability insurance can protect accountants against liability claims resulting from miscommunication.