Running head: FAITH INTEGRATION
PROJECT
1
Faith Integration Project
June 20, 2016
Group 1:
David Arrington, Abby Baker, Teresa Barker, Willie Barnett
William Bludworth, Caylan Bogenreif, Janae Brown, Rebecca Cesarski
ACCT 212-B10 LUO
Professor Laird
Liberty University Online
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Managerial accounting
Managerial accounting is defined as “an activity that provides financial and nonfinancial
information to an organizations manager” (Wild & Shaw, 2016, page 4). Managers can be
owners, partners, or employee’s placed in charge of running certain departments. Department
examples include information technology, human resources, production, and marketing.
Positions can include, but are not limited to, chief financial officer, chief executive officer,
director, and manager. Managerial accounting utilizes three specific tasks to help managers:
determining the costs of the services and products that the organization produces, helping plan
the future activities, and comparing what the projected results were to the actual results. If the
managerial accounting reports are not presented to in a clear and truthful way, it could cause
managers to make decisions that are not in an organization’s best interest. Managerial
accounting may seem like a modern concept; but, in fact, the Bible contains several assumptions
relating to managerial accounting and its principles. Examples would include the importance of
budgeting, the consequences of shrewd accounting practices, and the profession as an instrument
of grace.
Managerial accounting determines the costs of goods and services an organization
provides for the public. According to Luke 14:28-30, accurate budgeting for these costs is clearly
an important task. It says: “Suppose one of you wants to build a tower. Won’t you first sit down
and estimate the cost to see if you have enough money to complete it? For if you lay the
foundation and are not able to finish it, everyone who sees it will ridicule you, saying, ‘This
person began to build and wasn’t able to finish’” (New International Version). Christians must be
complete and comprehensive in the analysis of costs so that jobs will be finished.
Luke 16 tells the parable about a shrewd manager. The manager faces termination but
comes up with a scheme to collect an amount from debtors that pleases both his master and the
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debtors, evidence that customers were overcharged in the first place. The unrighteous steward is
in an agency position; and, as such, has been entrusted to manage the wealth of the master. Even
in biblical times, it seems that those who were selected as managers and admired for their
management skills were those who were shrewd. Consequently, cleverness and intelligence were
likely characteristics that were commonly found in those placed in stewardship functions. This is
consistently the case in contemporary times as well. Many of the most popular and successful—
albeit in some instances infamous—senior executives of our time are typically lauded for their
cleverness, intelligence, and ambition. Unfortunately, sometimes the very managers who were
once acclaimed as heroes to their stockholders (masters) and role models or mentors for their
employees have fallen from grace by their own hand, as a result of the same shrewdness that
spiraled them to the top.
As noted in the article, Unrighteous Stewards in Biblical and Modern Times (Jackson &
Leightner, 2007), “Both modern day and biblical unrighteous stewards show that our own
shrewdness can become a false idol that will prevent us from 1) a Christian relationship with
other men, 2) a God-fearing relationship with God, and 3) appropriate repentance when caught in
our sins. Remember, the unrighteous steward was fired. The master (Jesus) recognized his
cleverness, but the unrighteous steward was still fired. Unfortunately, the biblical unrighteous
steward will not be alone in the flames of eternity—he will be joined by many unrighteous
stewards of our past, present, and future.” Therefore, Christians must record and report the truth
even if it does not impress our “masters.” We are called to be holy in everything, just as Christ is
holy (1 Peter 1:15).
The distinguished and influential author and Doctor of Economics, Jere Francis has been
passionate about the absolute necessity of excellence and integrity in the profession of
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managerial accounting. “Accounting is a transformative practice that has the capacity to change
things in the world… and make a difference in what we choose to do” (Francis, 1990). He
proposed that integrity, honesty, and independence are the chief excellences of an accountant;
yet, apparently only for the benefit of man’s purposes. He said, “God did not include any laws
of accounting when creating the universe nor did Moses bring down any accounting
commandments from Sinai … accounting language is of neither natural nor supernatural origin.
We invented it.” This is a commonly held belief, yet it is mistaken “in that it sets up a false
dichotomy between things that were created by God and things created by people” (Stansbury,
2015).
The practice and profession of accounting, in the article titled Excellence, Success, and
the Protective Function of Common Grace in Accounting, is cited and defended as being an
actual instrument of God’s grace on Earth (Stansbury, 2015). The authors expand on the work of
Dr. Francis and countless theologians, secular theorists, psychologists, and academics when they
say that the accounting profession helps carry out God’s will on Earth by contributing to
society’s good. As stewards of parts of God’s creation, the accountant’s role is protector of
people’s assets; thus, mirroring God’s grace in a fallen world. The accounting profession is not
immune to temptation or sin, as clearly evidenced by recent scandals. Much in this world is not
as God intended. However, among all sinful distortions are elements of God’s intended
structures. This is where God’s grace can be witnessed. This is why “God causes His sun to rise
on the evil and the good, sends rain on the unrighteous and the righteous,” (Matthew 5:45), and
stops sin from having it’s full and deadly effect. The practice and profession of accounting
endures; it upholds excellence overall. In addition, it self-polices in order to maintain integrity
and the public trust. Therefore, it is of the utmost importance that everyone entering this field
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understands that there is no room for selfish interest in an accounting statement. It is critical that
accountants are self-aware of the critical nature of their moral responsibility to management and
to the world, which is akin to a doctor or lawyer. The article states, “Ever since the invention of
double-entry bookkeeping, the genius of accounting has been in its systematic recording of
information that allows errors to be tracked, whether they be honest or dishonest” (Stansbury,
2015).
There are many opportunities for Christians to help uphold excellence in accounting. The
authors suggest that we embrace the paradox of being both alienated pilgrims and engaged
witnesses by fully participating in the protective function of common grace that is a
manifestation of His will on Earth. And just as we are instructed to always be ready with an
answer to anyone who asks us to give a reason for the joy in our hearts (1 Peter 3:15), also be
ready to defend the institution of accounting from subversion. Be familiar with all aspects and
excellences of accounting, so that threats will be easily recognizable.
Christians who are involved in the practice of managerial accounting must provide
accurate information to internal users so they can make decisions that will benefit the company.
Unrighteous stewardship will prevent healthy relationships with God and man. The steward in
the parable was given a job to do and succeeded in the world’s eyes; but, ultimately, not in the
eyes of God. Righteous stewardship, on the other hand, protects a company’s assets with
accuracy and excellence, and glorifies God by manifesting His will on Earth.
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References:
Francis, J.R. (1990). After Virtue? Accounting as A Moral and Discursive Practice. Accounting,
Auditing, and Accountability Journal3, number 3:5.
Francis, Jere. Biography retrieved from http://www.uts.edu.au/staff/jere.francis.
Jackson, P. Z., & Leightner, J. E. (2007). Unrighteous Stewards in Biblical and Modern Times.
Journal of Markets & Morality, 10(2), 339-355.
Wild, J. J., & Shaw, K. W. (2016). Managerial Accounting (5th ed.). New York, NY:
Mcgraw- Hill Education.
The Holy Bible, new international version. (1984). Grand Rapids: Zondervan Publishing House.
