The Accounting Close of 2023 🎉
As 2023 winds down, I can't help but dive deep into my version of the annual close. I have the terrible curse of making everything financial, but bear with me—this is your life statement we're talking about! Let’s spend a few minutes on your metaphorical balance sheet, sing an eulogy to 2023, and break down the accounting of a year-end close (my way).
📊 Income Statement: Did I Profit in my Life Goals?
💸Revenue/ Income - Let's kick it off with the income statement of life. Did I meet my goals? Did I make it rain financially? Savings goals, investing goals—heck, did I achieve my goal of spending 10 days with my parents (without driving them crazy)? It's a checklist of victories and lessons, like successfully transitioning my daughter to a new school (gold star for me) and maybe eating a few too many chocolate bars (let's not talk about that).
💸 Operating Expenses: The Costs to Exist
Now, let's talk about my "Costs to Exist." Mortgages, groceries, gym memberships, Amazon splurges (they add up). It's the nitty-gritty of adulting, and if I ended up in the black or red, it's time to assess.
Did my losses turn into lessons? Spoiler alert: they usually do. I am biased with my personal income statement and strive to be optimistic. I grade myself on a positive curve. Even when everything goes wrong, the lessons are always net pluses. Health and time are the best outcomes of a year of grinding and hustling. More time with my loved ones and my kids, and more time to learn and improve. 8,760 hours of learning, working, parenting, parenting and sleeping always positively impact my balance sheet.
🌈 Balance Sheet: Are My Assets Growing?
Ah, the balance sheet—the true measure of wealth. Not just the tangible assets, but the intangibles. How many lasting memories did I create? What's the value of my network? Have I invested in skills, connections, and long-term assets that will yield returns for years? And yes, any contingent liabilities (AKA people I may have let down)—how am I planning to make amends?
Aren’t we all in the business of improving our balance sheets? Whether good or bad, for ego or survival, accumulating assets and increasing our equity are the basics of humanity. The fittest survive by accumulating tangible or intangible assets (physical bodies, tools) (knowledge, skills). We are in the business of getting more affluent, rich with good health, good friends, good family, power, and of course 💰💰💰.
💰 Cash Flow Statement: Where Did My Money Go?
The cash flow statement is the trickiest of them all. Did I invest wisely? How much went into savings? Did my assets and liabilities play nicely together? Did I grow in wisdom? Cash flows are like the jigsaw puzzles of personal finance. My balance sheet does not balance often… It is a struggle. I cannot predict the future. There is no NPV formula to determine the value of certain relationships or the price of specific errors. But that's life; I do my best to make it tie. I roll forward, reconcile, plug, and move on—just like the best accountant in the world.
🚀 Statement of Equity: Where Did I Invest My Time and Energy?
Ah, the statement of equity. This is where I reflect on my investments—education, relationships, family, business. It's the sum of where I've poured my time and energy. And let's not forget the most critical question: Who and what am I grateful for? Because equity isn't just financial—it's the intangible richness that rolls from year to year.
In 2023, my gratitude knows no bounds—for health, faith, family, friends, teams, peace of mind, and this incredible virtual and physical community. I am grateful because I know that many do not have my assets, the chance to witness the last beautiful sunset of the year, the privilege to overthink a silly LinkedIn post or just peace. Many are suffering, dying, and falling. My gratitude is the plug, the prayer for a challenging but fruitful 2023.
As you embark on your own annual close, remember that your statements always roll. You are blessed with your health. You win by gaining more time. Your failures are lessons that profit you in the long run. Gratitude is the best plug for any imbalance.
Here's to an even more financially fulfilling and gratitude-rich 2024! 💼🌟
#AnnualClose #LifeAudit #FinancialWellness #Gratitude #cpa #thebalancedsheets
