Write Your Personal Financial Autobiography!
Accounting is boring number crunching, endlessly punching away at numbers on a calculator or on Microsoft Excel, right?
Accounting may use numbers, but those numbers tell important stories. Isn’t it about time that your personal finance story was shared? Even with just yourself.
What Is Accounting?
Accounting is the ultimate form of storytelling.
Have you ever wondered what is going on with your finances?
· How much money is actually coming in?
· Where does that money go when it finally reaches your bank account?
When done right, accounting gives you unbiased truth about your financial lifestyle. The world’s largest and most successful companies use it to communicate their story with investors around the globe, so why are you not using it to tell the story of your personal finances?
How To Get Started
There are cash and accrual accounting methods. Essentially all of the companies that you and I know utilize accrual accounting.
Think of the complicated rules like depreciation, goodwill, and any other accounting terminology that makes your eyes glaze over. Those are from accrual accounting and we will not be using them.
Cash accounting reflects the reality of cash-in and cash-out transactions. All you need to do to keep track of your personal accounting is to track the money coming into your account from work and pay for everything using a debit (or credit if you can avoid the debt) card.
Cash is king when it comes to telling your story. Let professional accountants worry about complex technical accounting topics, all you need to focus on is the amount of cash that is moving in and out of your life.
Is It That Easy?
Yes, cash basis accounting is all based on the cash transactions that make up your life.
Have you ever wondered where all of your money is going? Does it stress you out or keep you up at night?