FAITH ESSAY 1
Faith Essay
Biblical Concepts of Finance & Accounting
Liberty University
BMAL530-D04 LUO
Spring 2020
Professor Natalie Walker
BIBLICAL CONCEPTS OF FINANCE & ACCOUNTING 2
Abstract
Scriptures and published material relating to the bible along with finance and accounting
details will be reviewed throughout this essay. God speaks to us about accounting and finances
“should and “shouldn’t” in many versus of The Bible. Some of those verses directly give
command about finances, others discreetly touch on the topics, it simply takes a little careful
reading to understanding what the Lord is telling us. For example, 1 Corinthians 16:2 states “ On
the first day of every week, each of you is to put something aside and store it up, as he may
prosper, so that there will be no collecting when I come” (ESV). The explanation of this verse
that I have heard in church and in bible study, one is to give 10% of all their earnings to the
Lord’s house and the Lord will return that amount in abundance. This can be related to an
accounting or financial budget in which a company wants to save 10% on expenses for the year.
In today’s society, with an economy that is always twirling around like a carnival ride, they very
high risk of business fraud, using God’s word, the result of accounting and finance can more
honest and dignified. This essay will show the relation between biblical concepts and accounting
and finance concepts.
BIBLICAL CONCEPTS OF FINANCE & ACCOUNTING 3
Biblical Concepts of Finance & Accounting
Authors’ Hicks & Hicks described accounting as the face and language for all information
related to business and finance which result a company’s financial statements (Hicks, Melanie,
2020, p. 1), while finances are built on the foundation of accounting and allows managers to
direct financial decisions in the financing area of the business [CITATION Hic14 \p 23 \l 1033 ].
There are several biblical illustrations that teach key concepts in modern finance. During this
course, we have learned the values found in accounting basics. We learned depreciation, net
present value, the need for accurate recording of records, the role of effective management as
well as having good financial knowledge. These values are important; however, integrity is key
when one is assigned the responsibility of managing money. When an individual has integrity,
they also possess a sense of duty, which interconnects with honesty in turn, maintaining morals
and ethics.
1Timothy 6:10 reads “For the love of money is the root of all evil: which while some
coveted after, they have erred from the faith, and pierced themselves through with many
sorrows” (KJV). When an individual, no matter the position is a faithful person, faith is their
number one in their heart and their lives, regardless of the consequences that can sometimes
occur when putting faith over money, business, etc. Additionally, faith requires individuals to
have integrity as one of their main characteristics especially those that hold high positions such
as CEO’s, accounting or finance managers, or even supervisors. One rule of thumb in
management is “lead by example”, especially in accounting and finance. Leaders in this field
must ensure proper processed are being followed, as well as honest, diligent, creative, assertive,
and innovate.
BIBLICAL CONCEPTS OF FINANCE & ACCOUNTING 4
In 2017, professional services company “Accenture” was named the overall market Leader
by Everest Group PEAK Matrix Assessment for Finance & Accounting Outsourcing. The
company has maintained this leadership spot for six years in a row because they continue to
improve delivery and technology innovation [ CITATION Ent18 \l 1033 ]. "Accenture has
focused on providing clients with effective business solutions increasingly powered by data, AI,
analytics and digital technologies including blockchain and automation that are bringing new
levels of insight, control, and agility," said Debbie Polishook, group chief executive of Accenture
Operations [ CITATION Ent18 \l 1033 ]. Hagerman (1980) give accounts of basic biblical
concepts that date back to 1800 B.C. that involved internal controls, financial accounting, and
managerial accounting (Hagerman, Robert, L, 1980, p.n 71).
Hagerman’s description of how the Bible referred to accounting and financial concepts is
thought-provoking as is easily relation to today’s financial processes.
Financial statements are used from large corporations to family owned businesses to
provide details on how the business is doing. Companies or finance personnel can be seen as
committing fraud if there are inconsistencies in accounting information. In 2 Kings 12:16 we
read “The money from the guilt offerings and sin offerings was not brought into the temple of the
Lord; it belonged to the priests” (NIV). After reading the verse several times, an explanation of
the verse can be stated in such that accounting was used to keep record of money being received
by the temple; very similar to how a business keeps track of their accounts receivables and of
their accounts payable all on a financial statement. Luke 14:28-30 – “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” (ESV).
BIBLICAL CONCEPTS OF FINANCE & ACCOUNTING 5
This verse speaks about budgeting. When creating a budget whether it be a finance manager at a
company or a couple at home, both know, necessities come first. However, sometimes the cost of
these necessities come in as desired, therefore, one must create a plan for the costs in the way of
a budget. “Some major expenses, such as rent payments, only come due once per month. Others,
like home insurance premiums, only come due once annually. Planning ahead and saving for
those intermittent (but known) expenses is a key component of budgeting” (Livingston, Amy
2020).
In conclusion, after reading this essay, one can see each reference used all explain how
accounting and finance have been connected to bible concepts since the biblical times.
Additionally, the construction of the temple, in terms of accounting could have been used as a
way to know funds were returned; rate of return calculation as we have learned in this course.
Accounting is used for savings, expenses, revenues, depreciations, budgets, etc. The bible shows
the value of money and provides the Lords commands on how it should or should not be used.
As Christians, we know God has a plan for our lives since before we were born. The same goes
for our finances. However, he gives his commands regarding finances in scripture; the way we
choose to obey is up to us. Very similar to a business; if they do not use their finances and track
them properly, the business will fail.
References
Entertaintment Close-Up Editors. (2018, January 17). Accenture Selected as Overall Leader
in Everest Group Finance & Accounting Outsourcing Market Assessment. Retrieved 2020
December 16, from Gail In Context: Biography: https://go-gale-
com.ezproxy.liberty.edu/ps/i.do?p=BIC&u=vic_liberty&id=GALE|
A523384863&v=2.1&it=r&sid=summon
BIBLICAL CONCEPTS OF FINANCE & ACCOUNTING 6
Hagerman, Robert L (1980). Accounting in the Bible. The Accounting Historians Journal, 71-
76. Retrieved 2020 December 16, from
www.jstor.org.ezproxy.liberty.edu:2048/stable/pdf/40697656.pdf?acceptTC=true
Hicks, Melanie. (2020). Accounting for Non-Financial Managers. New York: McGraw-Hill
Education, LLC.
Livingston, Amy. (2020). Money Management-7 Important Financial Tips From the Bible –
Verses About Money. Retrieved 2020 December 16 from Money Crashers:
https://www.moneycrashers.com/financial-tips-bible-verses-money/
Powered by TCPDF (www.tcpdf.org)
