A: Hello everyone…today, we’re going to do a little bit of accounting.
A: Oh yes, but It’s pretty easy and highly applicable. Don’t worry, you will certainly understand it.
B: Ok. Carry on.
Today, we’re going to talk briefly about, “Closing Balance.” As defined by the business dictionary, Closing Balance is the positive or negative amount remaining in an account at the conclusion of an accounting period that will be carried forward to the next period. An accounting period can either be on a monthly or yearly basis.
One of the main essences of Closing Balance is to enable a firm to know what they have for the beginning of the next phase of the accounting period. Also, a Closing Balance serves as the assessment of one’s firm over a period of time. The calculation for CLOSING Balance (what money you have left) is Opening Balance (what you have in the bank at the start) plus Total Income (what money comes in) minus Total Expenses (what money goes out).
Now that we know the preliminary of a Closing Balance, let’s see what others outside the field of accounting have said about it. One of the renowned teachers and a Roman citizen of ancient days, Paul once said, “Everyone ought to examine themselves…”[i] Note, he said everyone not someone. More so, one of the greatest philosophies in history, Socrates also said, “an unexamined life is not worth living”
Examine yourself is also known as self-assessment. In relation to our topic, these suggest that at the end of each period or phase of life, it’s prudent to have self-assessment. Thus, living continuously, carrying out your various duties and activities without having time to assess yourself isn’t worth living. We need to find time to periodically assess our lives.
In assessing oneself, there are certain basic things we need to consider. It’s actually the same as finding the Closing Balance in accounting. First is an Opening Ambition. This basically refers to the set goals and objectives for the period under review. What were your expectations for the reviewed period? What targets did you set for yourself? What were the very things you projected to accomplish?
The second is Total Gains. What were the positive things that you achieved or benefited from within the year/ period of review? Thus, what are the very things that you can consider as a blessing, gain, success or privileges enjoyed over the given period. It also refers to positive memories. The moments you love and cherish.
Lastly, your Total losses. This refers to the negative or bad experiences you had. Your challenges, pitfalls, and flops. The moments of failure, down-moments, and the times where you were hit badly by the various situations in life. After considering all these, then find the summation of your expectations (Opening Ambition) plus the positive outcome/ experience that happened to you (Total Gain) minus the negative outcome/ experience that you encountered (Total Losses). That will give you your Closing Balance for the reviewed period.
Mostly at the end of the year, one may cheaply conclude that the year was bad or not favorable. But if you will take the time to assess yourself, find your Closing Balance, it will surprise you what the LORD has done.
The crux of the matter is that the end of every phase in life presents us the opportunity to assess ourselves so that we can project well into the next phase. Remember; refusing to examine yourself is not worth living. Self-assessment helps us to find our strengths and weakness. It also directs us on the helpful measures we can take for our lives.
As we end 2018 and cross over to 2019, let’s find time to assess ourselves. Know your gains and losses and use them as a guideline to project into the upcoming year. Thank you for being part of YOUCUS. We beseech you to continue to visit our website for we hope to serve you better in the coming year. To my Team members, your various contributions are well cherished. Always remember; YOU’RE THE FOCUS. I wish you all a prosperous New Year.
P.S: The conversation is a hypothesized conversation between the author and the reader (particularly the accounting phobia).
GOD LOVES YOU AND ALWAYS WANT THE BEST FOR YOU
[i] 1 Corinthians 11:28 NIV