Enronitis, Tycosis! What financial malady is waiting to wreak financial havoc on us next? The lesson to be learned from the lack of credibility in the numbers being reported by companies-accounting is an art, not a science. Under the laws of physics, force always equals mass times acceleration. In the world of accounting, however, two plus two usually equals four. And then again, maybe not. Numbers seem to be a moving target. So what does this have to do with managing and managers? Well everything.

Prior to the recent revelations of accounting malfeasance a la WorldCom, Adelphia, Global Crossings et al, a basic level of financial literacy was considered necessary for career advancement. Being able to contribute in a meaningful way to financial discussions would set you apart from the others. It's always been helpful to know how to read an Income Statement or understand what Earnings Per Share (EPS) is and why it's so important. What impact will the recent revelations about financial skullduggery have in a post-Enron era?

First of all, your job will likely become more involved with numbers…by necessity. Like the Christmas jingle rings "He's making a list and checking it twice, wants to be sure who's naughty or nice. Santa Claus is coming to town." (In this case, Santa Claus might be the accounting police or incensed shareholders). Every number, including the numbers on your monthly income or operating statement, will be reviewed, questioned, and scrutinized because senior management (read the CEO) is now on the hook for their veracity. Remember, your numbers roll up into a bigger picture called the Annual Report. Now that senior management has to sign off on the financial statements, you can be sure that everyone will be asked to make sure they are accurate. The CEO just doesn't have the time, or inclination, to personally verify every transaction that flows through the accounting system. As a result, greater reliance will be placed on your understanding of your numbers…and they better be right!

Second, the investment community is now demanding EPS estimates that reflect "real" revenue and earnings projections. This means companies will be expected to prepare forecasts that are more accurate. No more fudging numbers to hit earnings estimates. And here is where you, and your numbers, come in. Because your forecast becomes part of the bigger financial picture that gets communicated to the investment community, you'll need to have a better handle on your numbers. And what they mean. And if you fail to achieve them, why?

Finally, it's a good idea to know your way around financial statements because the numbers tell you how healthy a company is. Should you invest in your employers stock? Are rain clouds on the horizon? The fact is, companies rarely get into financial difficulty overnight. They usually cough and sputter before getting sick. And with an understanding of numbers, you can usually spot the symptoms well ahead of time. Numbers can be powerful predictors of the future. They reflect the good, the bad, and the ugly of everything a company does. And if you learn how to make them talk, they will tell you everything you need to know. I promise!