Running head: FAITH
ESSAY
1
Faith Essay
Liberty University
FAITH ESSAY 2
Faith Essay
The Bible and Accounting
The Bible is one of the most studied books of all time. Essentially, the book is the main
guide to the Christian faith, containing the primary principles that its followers are supposed to
abide by in their lives. It requires Christians to lead an honest life, one that is characterized by
faith and absolute trust in God. Accordingly, the Scriptures can be considered a life manual for
Christians all over the world. Revealing God’s will, the book covers various topics, including
morality and worship, which are all tied to the teachings of Christ and other holy figures who
came before Him. Accounting and finance are one of the major themes discussed in the Bible,
and some of the practices employed in the fields today are similar to those highlighted in various
parts of the Bible.
Accounting, as highlighted in the Bible, requires the maintenance of all financial records
(The Holy Bible, 1982). The field is mainly tasked with monitoring management performance. In
other words, it is supposed to track how finances are used for various purposes and in what
amounts (Hagerman, 1980). In the book of Luke in the Bible, a meaningful parable is given on
this matter. Having received reports of wasted money, a master asks his steward to account for
his spending in order to monitor his performance (Chewning, 1990). Notably, such action helps
in ensuring that the company or the individual for whom the accounting practices are done is not
defrauded either by internal or external organs. In the Bible, this is discussed in a negative
manner. In 2 Kings 12:16 (The New King James Version), the issue of building a temple without
proper records is brought to light (The Holy Bible, 1982). The Bible states that there were no
particular accounts kept with the men to whom money was paid for the construction. According
to 2 Kings 22:7, the reason given for this inaction is that the men were considered honest (The
Holy Bible, 1982). However, the inference from this is that accounts should have been kept to
prevent the one paying from being defrauded, which is the primary purpose of accounting.
FAITH ESSAY 3
In the Bible, accounting is a mediation tool between the creditor and the debtor.
Accounting is mainly a record-keeping exercise. It tracks all the ways through which funds are
used either by a person or a company. It also keeps one detailing all the money borrowed or lent
(Chung & Windsor, 2012). Such activity helps individuals to understand how they have earned
or spent their money, who they owe money, as well as how much they are owed. If a creditor
has a dispute with a debtor, accounting records can be used to resolve the conflict. In addition,
partners in a business venture know the share of their earnings through accounting. The Holy
Bible (1982), the book of Ecclesiastes in particular, states that keeping financial records, be it
with friends or relatives, is not something that one should be ashamed of. Instead, one should
carefully track the use of funds to avoid conflicts with his or her companions.
Furthermore, accounting and finance present an effective tool of internal control and
should be left out to people of integrity. This assertion is emphasized in the Bible. Notably, the
Bible covers internal control extensively largely due to the major construction projects and
business transactions described in its various books. It advocates the limited access to assets,
dual custody of liquid assets, and the separation of duties, which are components of the current
rationale for internal control (Hagerman, 1980). Today, the rationale for internal control is that
if employees are exposed to the temptation of stealing, they are likely to steal (Zuck, 2002). For
that reason, there is the need to have a system in place in order to reduce the likelihood of them
falling into the temptation. In the book of Micah 7:5-6, the Bible asserts that it is unwise to place
one’s full trust in a neighbor or even a friend (as cited in Hagerman, 1980, p. 73). In oher words,
there should be people responsible for various tasks, just like in accounting, and they should
display unquestionable integrity.
Overall, it is evident that there are various correlations between the accounting and
finance practices described in the Bible and those of the modern world. In fact, it is correct to say
FAITH ESSAY 4
that most of the activities tied to accounting today derive their inspiration and components from
the Bible. Although the Bible is mainly meant to be a guiding book for Christians, it has also
shown to serve other purposes, particularly in the fields of accounting and finance. Notably, it
advocates the keeping of financial records, which is the main aim of accounting today. The
purpose of this activity is to track the use of funds and to reduce the likelihood of an individual
or a company being defrauded and losing money. In addition, as noted, accounting today, just
like revealed in the Bible, is a mediating tool, which helps resolve disputes between a creditor
and a debtor. Lastly, it sets precedence for internal control in a company.
References
Chewning, R. C. (1990). Biblical principles and business: The practice. Colorado Springs, CO:
NavPress.
Chung, J. O. Y., & Windsor, C. A. (2012). Empowerment through knowledge of accounting and
related disciplines: Participatory action research in an African village. Behavioral
Research in Accounting, 24(1), 161-180.
Hagerman, R. L. (1980). Accounting in the Bible. The Accounting Historians Journal, 7(2), 71-
76.
The Holy Bible: New King James version. (1982). Nashville, TN: Thomas Nelson, Inc.
Zuck, R. B. (2002). Basic Bible interpretation: A practical guide to discovering biblical truth.
Colorado Springs, CO: Victor Books.
