Income and expenses, assets and liabilities described with proverbs and sayings

If you are an individual and need to draw on the collective Bulgarian wisdom, then it is very likely that you will look to proverbs and sayings. Or call your wise grandmother.

If you are a legal entity and you have a financial imbalance in your company, then it seems most reasonable to look for an accountant…

Well, if you don’t believe us, call your wise grandmother again and she’ll tell you the same thing.

How do we know? History has proven that almost every grandmother knows two and two hundred. Accountants too.

Today we will try to find an intersection between accounting and proverbs.

Let’s start with this folk wisdom “Measure three times, cut once”, in other words this is the typical advice that any accountant from Correct Account Consult would give you.

That is, carefully plan your expenses even before you make them. Otherwise, you will have a serious problem with income.

Because if you cut without measuring, then you will face the realization of another old wisdom “He who pays badly, pays twice”. There is no way that the author of this insight is not some accountant.

But on the topic of income and expenses, we would also add this proverb “Many know how to make money, few know how to keep it.”

Knowledgeable accountants will recommend that you distribute a dividend because then you will owe 5% tax on the amount. And, at the same time, your remuneration under a management and control contract not only guarantees you taxation, but also requires an additional expense for insurance.

But if your plans include a high pension, don’t underestimate social insurance. Seek balance in everything. The choice is yours, but consult with your accountant to make an informed decision.

After all, in his capacity as your consultant, he is always ready to protect your financial interests, and this goes through the strict and regular payment of your obligations under the old rule “If you want to take, learn to give”. In fact, the Bible says it even better: “Give and it may be given to you.”

To save your business from financial chaos, you certainly need to be able to balance between income and expenses, between assets and liabilities. If you have to, embroider it somewhere or tattoo it, but remember that your expenses should not exceed your income, and your assets should be more than your liabilities, otherwise you will realize that the saying “Eyes full, hands empty” is written for you.

Have a question about your tattoo?

Well, no, under no circumstances would anyone from the “Correct Account Consult” team advise you on this. It’s difficult to report an “accounting advice tattoo” as a business expense on your annual return. It’s not impossible, but we don’t recommend it.

The universal rule that any entrepreneur should follow is “Everyone spreads according to his own rug”. Yes, it’s conservative, but it’s true.

Assets and liabilities are the true picture of your business and it’s up to you what it portrays. Therefore, it is necessary to constantly exercise strict control over them.

Assets bring benefits to your business, liabilities harm it in the long run.

But this is not about any kind of control, but about strict accounting control. And do you know why?

Because one day you will reach the point where you will visit one of all the possible banks in the market to request a loan for your business.

If you are in good accounting terms, then the vault will open for you and you will get approval. Otherwise…

We admit that we are not able to give you such information, because the clients of the accounting office “”CORRECT ACCOUNT CONSULT”” are in good standing and receive loans.

Guaranteed, throughout the year we constantly inform each of our clients about their financial balance and alert them early if there is even the slightest risk of any financial turbulence. As the saying goes, “Fear the vineyard keeps.”

Because “A friend in need is known.” So does a good accountant.

Some find this out the hard way unfortunately.

In your business, you should never allow something as important as your bookkeeping to be in the hands of unproven and incompetent accountants who presume to improvise or advise you to circumvent the laws so that you don’t have to realise the meaning of the proverb “Steaming mess of blow”.

And you can choose something significantly more optimistic, right…

“He who works honestly lives easier,” for example.

Do you know when you have the right to define your company as prosperous?

The day your accountant tells you that your assets are higher than your liabilities. Then you can boast a high degree of liquidity.

This is the goal you need to set and follow.

You can also reach it using “Correct Account Consult”.

Because “A friend in need is known.” So does a good accountant.