Why Accounting before Finance?

When I started my career, I had to work for the first 5 years in pure accounting entries and reconciliation.

Every time I approached the Finance Manager expressing my wish to work in Finance – as my BS is in Finance – he used to send me back to my desk saying: “You will thank me in the Future”.

Finance is the science of using (understanding & interpreting) accounting records, in order to extract from them the necessary projections. Not only that, through a solid allocation & understanding of accounting entries, Finance people will be able to evaluate a department’s performance, a project projection, and estimate its future result.

So Accounting is the fuel for our car; if we do not put this necessary fuel, the car will not move. Jumping directly to the Financial Accounting level without analyzing and understanding Accounting Science will not lead us to the desired level.

That is why, I chose to start the first chapter of my essays with the “Golden Equation”: Assets = Liabilities + Owners’ Equity Believe me, this will be the Golden rule: now let’s jump to the first Chapter!



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