Conspicuous Accounting
What is conspicuous accounting?
In short: a new financial model in which modern organizations can account for the flow of cash around their business in real time - and share that information both internally and publicly with stakeholders. That includes:
- Sharing hiring, salary and bonus data
- Being able to determine the cost/profit of every group within an organization
- Cap tables and real-time earning projections if companies were sold
- Accounting for contractors as permanent expenses, rather than one-time costs
- Operating expenses for IT services that aren't projected to decline year over year
- Loss leader projections for particular product lines/services
- Being able to predict how long the organization can function (based on cash reserves and current costs + staffing) before running out of cash