How Accounting Logics Improve Business Financial Management

The "wires and pliers" of conventional, IT centric
 business financial management often lead
 businesses to "bark up the wrong tree."

Accounting logics conceive of automation as the net reduction of attentional burdens in financial management. This is in contrast to automation as the ever-increasing use of computers and software in the usual sense — an IT centric definition of automation that fails to recognize that computers and software often merely shift attentional burdens, and sometimes actually increase them.

Business financial information is either (1) used by people outside of the organization — creditors, fiduciaries, regulators, and taxing authorities furnishing the record of what has happened in the past for compliance purposes; (2) used by internal workers making day-to-day decisions about an enterprise’s processes, cash flows, and funding dynamics with a right now time perspective; or (3) used by executives to make decisions over longer time frames with a forward looking predictive perspective.

The knowledge bases serving these three basic divisions of business financial information in times past were kept functionally separate and distinct on a non-overlapping basis. Then financial management software came along with attempts to serve the purposes of all three simultaneously through one conflated knowledge base — substituting contrived tradeoffs in software (technically known as "combinatorial optimization”) for truly skilled organization of business financial management information.

In contrast, accounting logics rediscover the time honored financial management sophistication of the past by providing a “piloting bridge” to the IT enabled present — eliminating superficial automation — freeing your attentional burdens to concentrate on the criticalities that really matter.