Do your clients’ eyes glaze over when you start to explain accounting analysis or business strategy to them? Clients are often great at what they do in their business, but not too many clients are good at what we accountants do. Sometimes, we could use a little help to put things in our clients’ languages.
This is where ChatGPT can really help. ChatGPT is great at analogies. Let’s say your client owns a restaurant and is a die-hard pickleball fan. The restaurant, you have noticed, could benefit from the methodology called Five Thinking Hats.
Here’s the prompt to enter into ChatGPT: Use a pickleball analogy to describe the methodology called Five Thinking Hats. I need to be able to explain this to a business client that owns a restaurant and loves pickleball.
Here is ChatGPT’s answer:
The methodology known as “Five Thinking Hats,” developed by Edward de Bono, is a powerful tool for improving decision-making and problem-solving within teams. To make this concept more relatable to someone who loves pickleball, a sport that requires strategy, adaptability, and teamwork, we can use an analogy to explain the different aspects of the Five Thinking Hats.
White Hat (Information): Imagine stepping onto a pickleball court for the first time. The White Hat represents gathering all the facts and data before starting the game. Just as you would learn the rules, the dimensions of the court, and the equipment needed for pickleball, the White Hat is about objectively looking at the information you have.
Red Hat (Feelings): Now, think about the excitement or nervousness you feel before a game. The Red Hat symbolizes the emotions and intuition involved. In pickleball, acknowledging your gut feeling about a particular shot or strategy is crucial. Similarly, the Red Hat allows team members to express emotions and gut feelings without the need for justification, recognizing their impact on the decision-making process.
Black Hat (Judgment): Consider the strategy you employ to identify your opponent’s weaknesses or the cautious approach you take when you’re leading in points. The Black Hat is about critical thinking, looking at potential problems, and why ideas might not work. Just as in pickleball, where you critically assess risks before making a shot, this hat focuses on caution and risk assessment.
Yellow Hat (Optimism): Think about the confidence and positive energy you bring to the court when you’re on a winning streak. The Yellow Hat represents optimism and the exploration of benefits and value in ideas. In pickleball, this would be akin to focusing on your strengths and the strategies that have worked well for you in the past, looking for opportunities to score and win.
Green Hat (Creativity): Finally, imagine you’re in a tight spot during a match, and you need to come up with a creative shot to outmaneuver your opponent. The Green Hat stands for creativity and seeking out new solutions. Just as you might try a surprising serve or a unique shot placement in pickleball, the Green Hat encourages thinking outside the box and innovating.
By wearing these different “hats,” or adopting these different perspectives during discussions, your team, much like a pickleball player on the court, can approach problems from multiple angles, ensuring a well-rounded and thoroughly vetted decision-making process. This approach can be particularly useful in the restaurant business, where decisions often need to balance data, customer emotions, risks, potential benefits, and innovative solutions to stand out in a competitive market.
Here is another, simpler, example. Your client just doesn’t get cash versus accrual, but he is a huge online shopper. Here is the prompt: Could you explain cash versus accrual using a shopping example?
ChatGPT’s answer:
Sure! Let’s use a simple shopping example to explain the difference between cash and accrual accounting.
Cash Accounting
In cash accounting, transactions are recorded only when cash changes hands. This means income is recorded when you receive money, and expenses are recorded when you actually pay money.
Example:
- Day 1: You go to a store and buy groceries worth $50, but you pay with cash immediately.
- Cash accounting: Record the expense of $50 on Day 1.
- Day 5: You sell homemade cookies for $30 and receive cash immediately.
- Cash accounting: Record the income of $30 on Day 5.
Accrual Accounting
In accrual accounting, transactions are recorded when they are incurred, regardless of when cash is exchanged. This means income is recorded when it is earned, and expenses are recorded when they are incurred.
Example:
- Day 1: You go to a store and buy groceries worth $50, but instead of paying immediately, you put it on your store credit account and will pay later.
- Accrual accounting: Record the expense of $50 on Day 1, even though you haven’t paid yet.
- Day 5: You sell homemade cookies for $30, but the customer promises to pay you next week.
- Accrual accounting: Record the income of $30 on Day 5, even though you haven’t received the money yet.
Comparison
- Cash Accounting: Focuses on the actual flow of cash in and out of your hands. It’s simpler and often used by smaller businesses.
- Day 1: No entry (because no cash has been exchanged yet).
- Day 5: No entry (because no cash has been received yet).
- Accrual Accounting: Focuses on when the transaction occurs, providing a more accurate picture of your financial position at any given time.
- Day 1: Expense of $50 is recorded.
- Day 5: Income of $30 is recorded.
In summary, cash accounting records transactions only when money is exchanged, while accrual accounting records transactions when they occur, regardless of when the money is exchanged.
Going a little wilder here, we can ask ChatGPT to put the key points of a disaster recovery plan to rap music. While rap music is not exactly an analogy, some would say it is a different language, and if your client loves rap, they might be able to better relate to your Disaster Recovery Plan set to rap music.
Prompt: Could you convey the essential items in a disaster recovery plan using a rap beat?
(Verse 1) Yo, listen up, we gotta talk about the plan,
Disaster recovery, gotta understand.
First thing first, gotta back it up right,
Data on the cloud, keep it outta sight.
(Chorus)
DRP, we got the beat,
Disaster plan, we won’t retreat.
Backup, test, communicate,
Recovery swift, no time to wait.
(Verse 2)
Next step, identify the risks,
Fire, flood, cyber, don’t dismiss.
Critical systems, list ‘em out clean,
Prioritize the ones that keep the machine.
(Chorus)
DRP, we got the beat,
Disaster plan, we won’t retreat.
Backup, test, communicate,
Recovery swift, no time to wait.
(Bridge)
Communication, it’s key, ya see,
Contacts and roles for the whole team.
Emergency numbers, don’t forget,
In a crisis, gotta be set.
(Verse 3)
Testing the plan, make it routine,
Simulation drills, keep it pristine.
Update it yearly, don’t be slack,
In the face of disaster, we bounce back.
(Chorus)
DRP, we got the beat,
Disaster plan, we won’t retreat.
Backup, test, communicate,
Recovery swift, no time to wait.
(Outro)
So that’s the scoop, disaster prep,
Follow these steps, you won’t misstep.
Stay ready, stay smart, keep it tight,
With a solid DRP, you’ll be alright.
No one will call you a boring accountant after that.
ChatGPT can generate these answers for you and your clients in seconds. Your job will be to remember to use it:
- When your client struggles to understand your language, discover a hobby or passion of your client’s and ask ChatGPT for an analogy to speed understanding.
- When your clients’ eyes glaze over, slip in something fun to raise the energy level.
- When your own work gets a little tedious, make it more fun with ChatGPT.
Sandi Leyva, CPA, is the author of ChatGPT for Accountants and an 8-hour self-study course on ChatGPT. Her website is https://AccountantsAccelerator.com.
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Tags: Accounting, Advisory, Technology
