I always correct people.
â€œYou went to school for accounting, right?â€
â€œNo, I was a counting major.â€
*Gasps of enlightenment from all who heard*
I used to say accounting is the language of business, but that doesnâ€™t get as many laughs.
When a lot of people think about accountants, they think about â€œbean countersâ€, counting the money, and â€œcooking the booksâ€. Thanks to Seinfeld, they also think about â€œtax write-offsâ€. People may not understand what they do, but thanks to what has been going on in the economy, mainly financers, but also accountants, donâ€™t look too good in the public eye.
I went through a lot of schooling and a lot of studying to be able to help answer this question:
â€œWhat do accountants do?â€
We take an economic event, measure it, and report it. If an economic event occurred, we measure it, and report it.
We measure it using certain elements. For simplicities sake, I will go with IFRS (they are more theoretical on this stance than GAAP, which has 10 elements)
We measure what an entity has (assets), what it owes (liabilities) and what itâ€™s value is (equity). The first three are a snapshot of the company and the balances carry forward indefinitely. We also measure what it makes (income) and what it spends (expenses). These two are reported over a certain timeframe, and then changed back to â€œ0â€ to start the new period.
I have a minimal amount in my bank account. I owe a ton in student debt. Therefore I have negative equity. I make a decent salary, but I spend it all on many things, like Tax Relaxer and my big wedding coming up!
"Back in college I pitched an idea to my marketing student group that I truly believed in: "Anything of quality can be had at an affordable price." The Tax Relaxer is built on the same simple principal: "Quality Returns, Prepared and Reviewed by a Quality Specialist, for an Affordable Price, PERIOD."
- Kevin McMullen, Founder