Should Accounting Be the Language of Business?

Resource Type
RTM Publication
Publish Date
Randall S. Wright
Breakthrough Innovation
Associated Event

It should be evident that Accounting should not be the language of business, unless, of course, the sole objective of the firm is to manage to the mean by eliminating variances and extracting all life from assets—all of which are necessary to profitably filling current demand, but also ultimately mean embracing mediocrity. Accounting is apt for defining the status quo, stating the immediate financial condition of the firm, and managing costs. It is not a language constructed to navigate the uncertain and constantly wavering trade winds of the new; it cannot offer the imagination needed to apprehend not only the new but the emerging. Breakthrough innovations that can make the future of the company, and disruptive innovations that pose existential threats to the core, are always on the periphery, outside the realm of the balance sheet and income statement. We won’t get anywhere trying to discuss them in Accounting.