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How can Accounting be FUN?

BY IN Finances On July 19, 2016

5.5 Accounting is FUN

I remember back in 2010 when I created my own Twitter account after not being part of this social network. I am quite the tech lover and didn’t understand what this could offer. After looking at my business, reading materials on how to be effective and efficient, it was obvious that the time had come.

In my “BIO” section, I listed “Accounting for FUN!!!”. Within a short period of time, I received the following replies:

  • Is putting “fun” in accounting allowed?
  • “FUN” better be in there! I cringe at numbers.

Most people would never associate the words FUN and ACCOUNTING in the same vocabulary, let alone in the same sentence. The reactions I receive are anything from “Yuk” to “You must be joking” to “You are out of your mind”. I know, this may seem all too real to believe. How can anyone have FUN with ACCOUNTING? Well, you have come to the right place.

When I think of FUN, the following have done it for me:

  • After defaulting on several of my credit cards, I called them back years later and negotiated what I believed I should be paying. One creditor was so angry with my approach that he hung up on me!!! I definitely had the last laugh on this one………..
  • Getting that letter from my car dealer that says my car payments are over and my car is still in excellent condition. I now have an additional amount of cash available to me to do with whatever I want to
  • Going to Arizona with my wife and paying cash for the trip while most of the other people in her class stay behind and work
  • Going to Australia for a month and seeing my business continue as normal

In business, you may hear the phrase “How strong is the balance sheet”? Some people have no clue what this means and how it relates to them. The balance sheet essentially is the financial check up at a point in time and is made up of the following:

  • Assets – what you own, eg: a house
  • Liabilities – what you owe, eg: a loan as the “mort” in “mortgage” means death in Latin
  • Equity – whats left over when you subtract liabilities from assets (I hope and pray it is positive)

You see, everyone has a balance sheet and it is representative of their lives. When you have more outflows than inflows, your balance sheet over time becomes heavily in debt and there is no fun in that. The same is true in the reverse in that the more inflows you have over outflows, your balance sheet over time will have a huge surplus and now you can have all the FUN you want. You would be surprised how short of a time frame this turnaround will take place. Accounting just keeps the score for you.

The next time you hear FUN and ACCOUNTING in almost the same breath, just know that it is all up to you. These words can co-exist. What are you waiting for……….

On your “NUMBERS” team,

Vince


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