Hey all, I just wanted to give you all a quick rundown of why it's important to have an accounting.
I know a lot of people see accounting as "boring" or "time consuming", but with patience and the right mindset, you can be making a lot more than you currently are! Think of accounting as a football game. If you are playing in a football game, you'd want to keep score right? Because if you not keeping score, your just running up and down the field for no reason. This is the same for accounting, having an understanding of where money is coming from and where it is going!
Now this is where assets, liabilities and your net worth come into play. Your assets are anything that can be converted to money and liabilities are the amounts that you owe. Anyone can accumulate assets and appear to be rich, but how much do they owe on them? Always remember: Assets - Liabilities = Net Worth. Net Worth meaning how much money you actually have at the end of the day.
Just wanted to give you all my take on why accounting is important and that hopefully you can implement this into your personal/business lifestyles. Good luck to all my steeemians and I hope you all have a blessed day!
Good post, simple, precise and helpful. The basic accounting equation is so important.... Love the image.... A = OE + L or alternatively, OE = A - L
People and businesses always need to check their net worth or equity to see if value is being created.... Good educational post for the community :)
Thank you! I'm just doin my best to help make life easier for people :D
That's the best reason to do things. We share similar goals :)