Misconceptions of Accounting.

Accounting is challenging work that can seem dry, so it is easy to assume accountants themselves are dry, too.

There were times not too long ago when accounting was just physical ledgers, paper ledgers. So naturally, someone has to be very tedious in this landscape, and you have to do it uninterrupted. In this way, it is common to associate accountants with neurosis to a certain degree, and also with respect to how things are done. After all, there is sort of a program, right? There's a method on accounting and all trained accountants will follow General Accounting Accepted Principles. There is guidance on how things need to be treated. And so accountants generally are thought of as just rule followers and bean counters that don't add a lot of value, that don't add revenue and they're dry and it's no fun.

And so I think that's a big misconception of what accounting and finance really can do. I would counter and ask: “If you're losing money and you don't know it, how much is that costing you?” Without proper accounting you would not know.

Conversely, if you understand where all your money is and where it's going, that could be infinitely valuable for business success and planning.

How can accounting principles help the average person?

Everyone has personal finances. Depending on the individual, you may have a checkbook, credit card, pay rent, pay your bills. You have a job, etc. There is a flow of money coming in and going out which needs to be accounted for.

Unfortunately, many people lack financial confidence and are maybe nervous or trepidatious when it comes to personal finances. However, with adequate understanding, you can really empower yourself and achieve your goals.

It is true that money cannot buy happiness but it is an exchange of energy that we can use to help make our lives more comfortable.

I would recommend everyone get an introduction into accounting and increase their levels of understanding.