Biblical Worldview of Accounting

The accounting cycle, also called the accounting process, is a series of procedures in financial information collection, processing, and communication. The information is presented in financial statements, which accountants prepare. Accountants gather information regarding a business’ transactions records and collate the statements to generate values presented in a financial report (Crosson & Needles, 2013).

The Accounting Cycle

The information collected and recorded should be accurate. It should be devoid of any fraud. An accountant is expected to use the organization’s accounting resources, including software systems, to record any and every entry. Doing so ensures transparency, which instills a sense of confidence in the business from all stakeholders. Debtors, creditors, and shareholders agree on the amounts due and their respective shares of earnings for a certain financial period. This is encouraged in the Bible in Ecclesiastics 4:1-2 where it states: “These are things you should not be ashamed of—keeping strict accounts with a traveling companion.”

Further, information entered should give a clear picture of the status of the business and inform on future steps to be taken in making profits. The Bible teaches on the parable of the talents where the steward expected profitability from those he entrusted with the talents (Mathew 25:14-30). The Bible also discourages a lack of accountability in 2 Kings 12:16 when it talks about the Temple building: “No accounts were kept with the men to whom the money was paid over to be spent on workmen since they were honest in their dealings.” It is the same with accountants; they ought to use the data they collect regarding the business to eliminate waste and increase profitability. Lastly, the Bible exhorts proper stewardship; Ecclesiastes 14:7 states:
“Whatever stores you issue do it by number and weight, spending and taking put everything in writing.”

Reference

Crosson, S. V., & Needles, B. E. (2013). Managerial accounting. Cengage Learning.

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Discussion:

Biblical Worldview of Accounting

Discuss the relationship of accounting processes, accounting information and resource utilization and stewardship.

Biblical Worldview of Accounting

Review the Scripture provided in Biblical Perspectives in this session and throughout the course (or from your own research), and explain how guidance from the Bible applies to these concepts.

The textbook reading are from

• Financial and Managerial Accounting 10^th Edition by Belverd E. Needles, Martin Powers, and Susan V Crosson