The Other Language of Life
Having a basic understanding of Accounting is imperative to be effective and progress in your personal and professional life, whether you are answering the phone or managing a multi-state region. Besides, don’t you want to speak the language of business?
Double entry accounting is an incredibly key invention. It is a helpful habit to translate almost all conversations through an accounting perspective, amongst others. It weeds out a lot of ideas that sound great, but end up being either low priority or a waste of time.
In every job you have, your effectiveness is enhanced if you understand the larger picture you are playing in the overall company you serve. Part of that larger picture is understanding what parts of the Balance Sheet or Income Statement you and your group affects, and to what extent.
Wachovia Bank Statement 1906
Coming up with creative, informed suggestions to the organization on how to improve your job is enhanced by understanding Accounting. A firm grasp of cash flow and accounting concepts helps you be more creative. You will better understand how to increase the bottom line in your job, what departments are affected by you (so you should get to know them), and what to do in gray situations.
The same point pertains in your personal life. Spending hard earned cash on expenses is much less justifiable when the other choice will become an asset, or a capital investment. The difference is immense over a long period of time; many people consistently choose to spend their money on Expenses rather than slowly building up their Balance Sheet.
Accounting 101 should be a compulsory subject in public school. It is that important, and it is not difficult to learn. It is a life changing event. If you are without this knowledge, take a course at your local college. Or, consider reading some short, easy, recommended books.
Additional Resources:
 | How to Read a Financial Report: Wringing Vital Signs Out of the Numbers |
The insightful thing about this book is how clearly it spells out the basics of all those Accounting statements you look at whenever you’re trying to figure out what’s in your 401k. You don’t have to understand accounting; it’s that good.
 | The Accounting Game, 2E: Basic Accounting Fresh from the Lemonade Stand |
Here is the Accounting book you wished you had in school, instead of that dry, theoretical textbook they threw at you. It’s also written in a style that’s interesting and fun at the same time. "How can Accounting be fun?" you ask? Maybe I am a nerd. But after reading this book, you’ll be able to think through any situation like an Accountant. It’s absolutely fantastic.
Both of these books are good learning tools, and and both are for slightly different purposes. Get both of them. They make great reference material for the family for years to come.
References
Image from Wikipedia Commons
Pingback: Why MF Global matters | Leis Network
Pingback: Cost Centers | Leis Network