In this vast world of accounting whether it be financial accounting, business accounting, management accounting or life accounting, the three golden rules apply ubiquitously.
To understand this we first draw a simple definition of what is accounting in these perspectives.
· from the financial perspective (generally accounting seen this way only) accounting shows the strength of your business financially which gives the stakeholders a clear and concise picture of the business model and the future prospects and development to evaluate their returns;
· from the business perspective what does accounting mean, broadly speaking we can say that accounting from the business perspective is to analyze, summarize and present the people with which you are doing business whether be It your vendors, your customers, your business associates even your family member, friends or even foes(whom you may consider it that way but generally it should be called competitors). It’s the skill of analyzing these associates of your business and summarizing who are the strengths that you should showcast to the stakeholders;
· from the management perspective the accounting would mean the analysis and summary of the people you are entrusting your business activities to be run on your behalf majorly the person holding the senior management positions within your organization because until and unless the management is accounted for there won’t be integrity. When the management is accounted for the positive impact and the negative scores there can be created a balance which gives a suitable presentation of the business;
· from the life perspective the accounting would mean the analysis and summary of the person that pose an effect on your lift whether it be your family members, friend circle, people with whom you communicate daily, your near and dear ones, your secret holder, your social circle, your community circle. The accounting of these is rather more important as compared to all the above as what drives all the above is your life accounting because when the assets of the life are strong that can handle the liabilities and sometimes some contingent liabilities also and offer more capital return in the form of emotional and mental support no matter the contingent liabilities you may face in the above three the asset created through life accounting will handle them all and balance your life balance sheet perfectly.
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