Accounting: Language of Business
Those who know accounting, have read number of definitions of accounting in their curriculum and for those who haven’t read accounting; it might merely be a tool to record their transactions and present their financial results. But I have always regarded and respected accounting as language of every business. Sounds Interesting? Accounting is actually a wonderful language and learning it is even more amazing experience. I am always amazed by the thought that after learning accounting a person can actually communicate with any business in the world without any barrier. Doesn’t it sound like reading the manuscripts from those archaeological findings we see in movies on treasure hunt or something?
But why are we discussing this? The answer is simple I am a Chartered Accountant and I respect accounting, which is foundation for my and every accountant’s career. So today I thought to write something about the mother of my profession. Don’t worry I will not bore you with what’s written in our bulky books or I am not going to teach you accounting here (not for free at least, ha ha!!). I will simply tell you what I feel for accounting.
I regard accounting as a language because languages don’t have any assumptions but subjects do have. Take example to mathematics, Oh God!!, can we solve even a single numerical without assuming X or his Y or their neighbor Z!!! With due regard to all the mathematicians, I know we can’t do accounting without applying mathematics to it. But again we are using you; you are not using us. I use to have long debate on this with my sister, she being a mathematician and I being an accountant. But this is not about mathematics and accounting, it is about all other subjects and accounting.
Accounting has a universal style, whether you write it using any other language, being it English or French or Spanish or Arabic or so on. An accountant will still be able to understand accounting results and transactions, sparing few heads that might not been known to him. Due to this universal nature the businesses are able to expand beyond borders and barriers of different languages and nations. For instance, not many of you may know that any figure written in brackets () is taken as negative figure in accounting, but an accountant will always deduct a figure written in brackets. Isn’t it something new?
Like our mother tongue accounting is part of each and every individual’s daily life, in one or the other. Where on one hand, a daily wage earner keeps record of his/her daily earnings and spending, on the other hand a renowned industrialist can’t run an industry without accounting. Even at our home we do accounting, when we make list of our monthly expenses and figure out how to pay all those bills. Like we can’t communicate with our family without our mother tongue, in the same way we can’t buy groceries, furniture or appliances etc. without applying accounting to it, whether knowingly or unknowingly.
An accountant can read from the books the health of your business. If your business is stressed or needs help an accountant can communicate and know which part of business needs help or what goes wrong with it. Like a doctor finds fracture by looking at X-ray films, while others don’t even know which side is front and which is rear.
If we consider money as blood to run every business, society, financial structure and even country, then accounting is the sole carrying vessel to it. Without accounting every nation, state, society, business is like a cart without a bull and in absence of accounting, the situation can be very chaotic and the one which we can’t imagine in our darkest of dreams.
So this is pretty much it. My space, my views and I love to put them straight. Do write to me if you like reading this lighter blog, and login to my website for more blogs right from my experience and knowledge.