Essay Example on Bible-Based Accounting & Finance: Parables for Success

Introduction

The bible does not only teach us about God but also the general knowledge in other field, professions, and aspects of life such as social welfare, natural law, economics, politics, literature, accounting, personal hygiene, and family life. Therefore, the bible contains concepts that can be indirectly or directly be useful or helpful in the fields of accounting and finance (Cafferky, 2015). Through the use of parables in the new and Old Testament, Jesus taught his people about accounting and finance. The concepts of accounting and finance that have been used in the scripture can be tracked from Genesis the first book of the bible to the last book which contains information and details that help individuals in developing their moral standards in the business. Examples of these concepts include finance values, managing resources, dualaccounting, and restricted access to assets. However, the scripture describes other verses and biblical books that explain how biblical words are related to accounting, and finance and are being applied in different aspects of human life. Once these biblical principles concerning finance and accounting words are well developed can create a significant impact on the world of business as well as teach people how to manage their finances. Jesus used parables that relate to money which provide rules for accounting and financial actions. The following research shows different bible verses with the significant concepts of finance and accounting.

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Accounting and Finance Budgets

In the book of Luke, chapter 14: verse 28 to30, the biblical lines talk about how people should first sit, plan, and budget the costs of projects that they purpose to begin. The verse also teaches us how to plan and save for those recurrent expenses through budgeting. Through accounting, individuals can figure out which costs to cover not only for the problems at hand but also for the future (Roberts, 2015). Therefore, once the person can have the budget, it becomes easy to know the finances to save and what amount to use in other financial needs like paying for the household bills, saving for emergencies and future purposes.

Accounting Internal Control and Inventory System

Different verses in the bible talk about internal control where large volumes of money are being used, and an accountant is required to keep the records. For example, in the book of Micah 7:5-6, which states "Do not trust a neighbor; put no confidence in a friend (King James Version)." The bible warns against employees who are tempted to steal from their employers. Therefore, it is necessary for putting in place the internal system controls departments. The internal controls should have auditors to account for every coin coming in and going out of business. Another example from the bible that talks about internal control is the book of 2nd chronicles 24:11, where the book talks about the king's official who stole from their king, "Whenever the chest was brought in by the Levites to the king's officials, and they saw that there was a large amount of money, the royal secretary and the officer of the chief priest would come and empty the chest and carry it back to its place (King James Version)." Also, the book of Ecclesiasticus 42:7, says that we should keep a record of our finances. Businesses need to ensure that they maintain total control of the funds to ensure that all money reaches to their purpose. Therefore, the biblical lines about internal control suggest that financial bookkeeping is essential to avoid deceit, dishonesty, and fraud. Companies should consequently conduct financial auditing annually.

Finance Monitoring and Accountability

The bible also talks about monitoring the finances, for example, in Luke 16:2, Jesus gave a parable of about stewardship, in the parable; the proprietor is informed of how his employees are wasting and misusing his money. The lesson learnt from the parable of stewardship is that it is necessary to have financial monitors or auditors to account for finances to help reduce losses and fraud. In the book of ecclesiastic's chapter 4:1-2, Jesus taught that accounting record-keeping help prevents and reduce conflicts between business partners. The concept also implies that accountability makes sure that creditors and debtors reach an agreement on the terms and conditions that they should use to settle the debts

Finance Values, Integrity, Loans and Debtors

Many verses in the bible touch on values and integrity, for example, in 2nd Corinthians 8:16-17, when a Disciple called Paul sent Titus and his two brothers to collect money on his behalf from the Corinthians, the bible referred to the debtors as "the men of integrity" because they were able to pay and had made profit. The three men who were sent to receive the debt also implied that it is essential to have more than one person to avoid any possibility of fraud and employees dishonesty. The scripture also warns people about dishonesty money in proverbs 13:11. The verse says that money should only be acquired through the right ways and working to earn. There are many verses from the scripture that talks about debts and debtors. The bible psalms 37:21 warns against those people who take loans and do not pay, while on the other hand, it warns against creditors who give finances to the poor and charge much interest than required in Exodus 22:25. According to the principles, "a person in debt should strive to pay back any money they owe. If they cannot pay them back and are even unable to make regular payments to the lender, then it might be time to file for bankruptcy. Filing for this, however, should not be used as an instrument to escape obligations through a scheme to defraud creditors" (King James Version).

Conclusion

In conclusion, many of the accounting and financial concepts that are in the bible are helpful in today's individuals who are interested in developing their moral standards in the business. The foundation for financial and accounting management was recognized since the beginning of the creation, with models such as budgeting, internal controls, monitoring, accountability and other terms of accounting and financial managerial that are still used and applicable even in today's world of professional (Larson, & Dieckmann, 2019). So to say, most of the concepts that are being used today in finance and accounting were found back to biblical times. Many of the principles from the notions from the scripture suggest that financial auditing and accounting is essential to avoid dishonesty, fraud or misuse of money and resources.

References

Bible Gateway. (n.d.). King James Version. Retrieved from Bible Gateway: https://www.biblegateway.com/versions/King-James-Version-KJV-Bible/#booklist

Cafferky, M. E. (2015). Business ethics in biblical perspective: A comprehensive introduction. Downers Grove : IVP Academic, 2015. http://www.worldcat.org/oclc/1023761638

Larson, K. D., & Dieckmann, H. (2019). Fundamental accounting principles. [Toronto, Ontario] : McGraw-Hill Education, [2019] http://www.worldcat.org/oclc/1119582213

Roberts, G. E. (2015). Christian scripture and human resource management: Building a path to servant leadership through faith. New York, NY : Palgrave Macmillan, [2015] http://www.worldcat.org/oclc/904759607