Yes, folks, today is National Accounting Day.
I like to observe Accounting Day by reflecting on the importance of Accounting, and how it affects our everyday lives. Many people think of Accounting in terms of taxes, and they don’t like taxes, and hence, don’t like Accounting either. But I respectfully disagree.
Accounting is the language of business; how we talk about business and how we think about it. An entrepreneur running a business without knowledge of Accounting is like an American tourist trying to direct a taxi through Paris without knowing French. To do business properly, you must know the language.
Not everyone is born to be an Accountant. We Accountants actually like to do Accounting. We enjoy dropping numbers into Spreadsheets, adding them, subtracting them, and making them Balance. There’s a certain visceral pleasure when operating a Calculator properly, and a certain excitement as I sign a Tax Return. This is something that many non-Accountants couldn’t possibly understand. Not everyone is cut out to be an Accountant.
However, everyone in business should know Accounting. How to record a set of Books, how to read an Income Statement, and a Balance Sheet, and even how to manage Cash Flow. People must understand the concept of Cost. How much does something Cost?
So take a few minutes today to thank the Accountants in your life, and think about how you can use Accounting to make better, more profitable, decisions in your business, and in your life.