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Writer's picturePaul Ch'ng

Accounting Is Like Engineering

Updated: May 27, 2020

“Proper accounting is like engineering. You need a margin of safety. Thank God we don’t design bridges and airplanes the way we do accounting.” - Charlie Munger


Colour Accounting workshop in Kuala Lumpur, 4-5 March 2020


Just as engineers take more than numbers and equations into account when building airplanes and bridges, so too should we when making decisions based on financial statements.  Financial statements provide best possible estimates to reflect what's going on in a business but making decisions requires an understanding of how the numbers are derived and the factors that impact those numbers.


These are some of the things we explored during a 2-day Colour Accounting session with managers at a leading engineering and infrastructure company here in Malaysia.  It was the fourth Colour Accounting session facilitated for the organisation - a testament of its relevance to the business and that proper accounting makes perfect sense to engineers (naturally)!



Find out more about Colour Accounting here.

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