Tools 14/07/2023

# Everything comes from accounting

All economic information is based on accounting. It starts from an invoice, or a transaction, which is accounted for in a company, then aggregated at the national level to GDP, and so on.

All economic, monetary and fiscal policy decisions are born, in the first instance, from the accounting of one individual transacting with another individual.

Both microeconomics and macroeconomics can only be understood with accounting as a basis. One from the information of individuals and companies and the other from countries and groups.

# It is a relational language

Accounting relates movements, parts, and allows us to think horizontally about the materialisation or consequence of a movement; it is the double entry.

People who master and understand accounting well think in terms of flows, not static data; flows of relationships, which is how business, economics and reality work.

# Accounting craftsmanship is a powerful tool.

I have met very few professionals in economic management positions who really understand accounting. It is a very powerful tool because it allows you to shape your forecasts as reality changes. The problem is that when reality changes the template is no longer useful, or you have to make manual changes, and that's where accounting knowledge comes in; making an accounting entry.

Accounting + business knowledge + creativity = total professional power.