Universal truths of accounting

Accounting is timeless

Accounting is this amazing field which always stays true. To be specific the accounting equation (assets equal liabilities plus owner’s equity) is truly timeless.  This is my favorite part about the accounting in today’s world where everything is constantly changing.  We know that technology, social norms, environment, even relationships between people will not be the same tomorrow as they are today. However the accounting fundamentals will always be the same. Yes, there may be some changes in the accounting rules due to the changing markets, evolving new industries, business requirements etc. but the accounting basics will stay constant forever.

Accounting has no borders

Another characteristic which makes accounting so special is that this field has no borders. I will be able to take my accounting experience and knowledge and apply it to any business entity in US, Europe or Asia. From today’s global perspective of business the universal accounting application as well as its sustainability makes this field extremely unique and the accountants very valuable players.

Accounting is applicable to our everyday life

Accounting influenced the way I look at my life, manage my money, my time and energy I put into contacts with other people!

  • Approach to life

Since I am very passionate about mindfulness; I do believe that the balance in life is the key to the personal happiness. That is why as the accountant I like to compare our life to the balance sheet with a strong emphasis on the balance between both sides of the accounting equation. I do believe that each choice we make in our life will always affect both sides of the accounting equation. And the most important factor in each decision is to be aware that accounting equation must always balance. Let’s say that assets are the things we value in our life (health, family, education, talent, career etc.), the liabilities in this case would be the claims against those assets. The claims can come from any sources who supplied us with those assets (parents, schools, creditors, our bosses and society in general).

  • Personal finance management

In order to stay financially in balance it is extremely important to be aware that your liabilities should never exceed your assets. Therefore one should be aware of what is affordable within his own means and not how I call it ‘stretch’ his financial resources.

  • Time management

Time is the most valuable resource we have – with every second passed by we have one second less left in our life. That is why my approach to my time management is very simple – every minute beneficiary to myself has its respective cost. Yet time ‘wasted’ may be truly worth it!

  • The importance of reciprocity in personal relationships.

The aspect of dual character of things is crucial to the personal relationships. The reciprocal relationships where both sides exchange things with others for mutual benefits should be the ones we focus our energy on.  Perceiving relationships from cost-benefit approach could allow us to create healthy relationships with others.

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