In the mid 1980s at Hartnell Jr. College in Salinas California I came up with a much improved method for displaying accounting statements. I was taking an accounting course from Mr. Feldman. He was also one of the colleges directors. Hartnell began usisng fuf formatted accounting statements soon thereafter.
Fuf is the neat result of asking, Suppose we ignored our first grade teacher and put the total of a column of numbers at the top instead of the bottom? Several benefits result: 1) We shorten and simplify the statement. 2) The statement now presents in the familiar outline format.
3) Executives (commonly from a sales background) who need the statement no longer need to relearn how to read. That is, they can read it from top to bottom (like they do everything else). The bottom line becomes the top line.
As in reading a newspaper article, in a fuf statement the most important things come first. Imagine an executive who must go over the income statements of 50 franchisees. The first thing he wants to know is, Did they make money or not? If the store made money he may want to skip the details and go to the next store.
Please compare the following examples of standard versus fuf statements. If you much prefer the fuf statements, I hope you will adopt the figured upward format yourself.
Standard BUDGET STATEMENT
Figured Upward BUDGET STATEMENT
Standard BALANCE SHEET
FUF BALANCE SHEET
Standard INVOICE
FUF INVOICE
