You'll never guess what I am learning at the moment

I am learning accounting. I hate it. I find it hard to understand. I did some back in secondary school almost 40 years ago and I don't remember much of it except I had to write the word "Tunai" (meaning Cash) a million times and that the left and right side always had to be equal when you added it all up.

Now I'm learning it the same way I learn anything - I just watch videos and read articles and ask one question at a time and and run into a million dead ends. At first, none of it made any sense and the whole thing seems futile. Liabilities and Revenue are on the same side? What?!?! I thought Liabilities and Revenue are enemies. I just couldn't find good explanations on the Internet and I was too embarassed to ask anyone. Everything I came across just said to accept it and memorise it, so I tried to do that, which is against my nature. After a long time, I started to kind of understand it, I think. Basically, you have to follow where the cash goes. Liabilities have a negative connotation, but when you borrow money, you have money coming in, so it's on the same side as Revenue. Book keeping is just writing "Cash" on one side and then some other word on the other. Just follow all the "Cash" and it's a lot less confusing. 

I have a long way to go. There was this formula: Assets = Liabilities - Equity, which sounds like it makes sense, but when you consider that the left and right sides of the accounting books had to be equal, you have to ask - What about the other items in there, like Distribution, Expenses and Revenue? Turns out, the formula is an oversimplification, and in the end, you do have to factor in those 3 other things as well. There are lots of things like that in accounting, so it's kind of cheeky and different from how scientific formulae are applied. That's how I understand it anyway. I could be wrong. I definitely need to read more.

This has always been a part of me that was super lacking and chipped away at my confidence and to be honest, my mood was all doom and gloom the past 2 weeks because I was looking through some company accounts and I didn't understanding any of it and I just felt like there was no way I ever could. Now at least I understand some of it, which sounds trivial but to me, is kind of amazing.

Comments

Popular posts from this blog

I stopped procrastinating and it wasn't so bad

Art is dead (in Malaysia)

Just remember the sun will explode.