It is time for a road trip! Work has been going great and the economy is stable and secure. I have always wanted to go to Wyoming and now is the perfect time to go. My truck is older, but it is paid for and I feel confident it will make the long trip without any issues. I know the fuel gauge does not work, but I will fill up every 4 hours.
People, driving without the benefit of a working fuel gauge is just asking for trouble. Sure you can get by without it, but why gamble? I know you would not fly without a working altimeter. A working temperature gauge is a fabulous thing for any engine. How many times during the day do you look at your clock? If your clock did not work, how fast would you replace it?
We rely on our gauges. Gauges are great tools to ensure our success. Financial Statements are gauges we use to track our finances. Now days check registers are all but obsolete. If you want to know how much money you have, just check your ATM receipt. For those of you who do that, you are mighty trusting.
All of us should take a more proactive position in tracking our financial well-being. When you spend your cash on something, it may not necessarily be an expense. Use some of your cash to purchase assets. When you buy a boat, for personal use, it is classified as an expense and may not be depreciated. However, if you use your boat to earn cash, then your boat is an asset and may be depreciated. A boat can either cost you money or make you money. Ranchers understand this concept well.
Financial Statements separate out the value of your assets, liabilities, personal or business equity, revenues and expenses. We all should, at a minimum, track these 5 subtotals of our annual financial records. Just knowing how much money you made last year is not nearly sufficient for your road trip to financial success.
I own and operate Rule Accounting. I realize that financial recording keeping is not for everyone, but that does not mean you should not keep up with your finances. QuickBooks has excellent apps to take the drudgery out of record keeping. I do recommend to hire an accountant to aid in setting up QuickBooks. Everyone’s individual financial records are different and should be customized to individual needs.
Brett Bickham, Clifton, TX
10/19/2018