Why can I write a screenplay, have a decent result at an IQ-test and have studied math on a high level, but can’t understand the bookkeeping of my own company? It’s not rocket science.
I have it all on paper, the traditional way, in a faint hope to grasp what I am doing. The first year I struggled with the numbers, to get it right at the end of the year. After that, I figured I understood how it worked.
Yesterday when I was catching up with the journals I suddenly realised that I had switched the numbers on every journal entry since February. What’s my goddamn problem?! I’m not that stupid in other areas. What is so problematic with bookkeeping?
I buy something it cost me a sum of money. This money is the price and then VAT. The total sum goes into one column, the VAT in one and the price without in another. Why do I mix up where the total sum and the price without VAT go? It should not be that difficult. The total sum is what it actually costs me; it reduces my capital.
No, it is not rocket science, but it is abstract.
Finances have always been some form of abstract magic in my eyes, making situation change because you put money on another account. A CEO can claim it is advantageous for the company to outsource because that cost – a higher one, than for the own staff – doesn’t end up on the account for employees, which in turn result in a better key ratio. It costs more but in an area where no one cares. Still it is the same company.
Do I try to find an excuse for mixing up the prices with and without VAT? I guess so. Just as I flunked the probability theory test at University because I had decided that it was all humbug.