Accounting is supposed to connect us to reality.

Accounting is supposed to connect us to reality.

The concept that accounting connects us to reality integrates the capture and analysis of real-world economic data, which ultimately drives financial reporting. I perceive reality in business and accounting as both relative and specific; it is the economic substance of an entity at a given point in time. In my own experience, I capture and translate real-world information into financial terms using systematic recording methods.

This concept heavily leans into the idea that accounting must assist stakeholders in their capacity to make informed decisions. The connection between the entity and its stakeholders is effectively bridged by established frameworks that consistently measure, categorize, and report this reality. The reliability of this connection is paramount because, without it, the reported information loses its relevance and faithful representation. Furthering my understanding in how “reality” can be relative and specific and how they differ. Bridging the gap between real-world events and financial reports. As they seem very distinct yet intertwined. I find it interesting that the financial realities of a business can change depending on the Lens through which it is viewed.

In my corporate administration role, I am on the coalface of the company’s economic events, somewhat of a bridge between the financial realities and the operational activities. I regularly capture specific realities when processing supplier invoices. I transform hard data into its first form of faithful representation. The transformation truly begins when I classify each expense, between multiple accounts, two different farming enterprises and multiple different entities, referencing a structured chart of accounts. Sometimes I refer to myself as a cog that helps drive the bigger

machine.