Doesn’t ethics sound weird with accounting? But it has everything to do with the business. Ethics are the crucial element in the marketing business and therefore is valued the most. People with a big-money mindset or a rich money mindset understand the importance of ethics in business, especially in developing countries. Accounting is the representation of the finances in the books and on paper, therefore it needs to be accurate and true. Accountants are therefore supposed to adhere to the ethical rules, the code of ethics. Any change or failure in the accuracy may lead to severe consequences on the entire company or an organization. It is also important to have a healthy and rich money mindset to be able to understand the financial and literal value of these ethical codes that one needs to abide by while doing business. The financial ethics code focuses on values such as honesty, trust, loyalty and thereby reducing the chances of mishaps. The ethical codes were also reinforced after the global financial crisis and scandals, to maintain accuracy and transparency in the business and stock market.
Books have always been helpful during a critical time like this, and Mind Your Money, a great financial book about changing and developing a healthy money mindset serves as the money mindset coach for all business people and also educates people in accounting.
The ethical codes are important for various reasons including:
- It is inherent to the accounting profession: accounting people and people with a big-money mindset benefit from this as it helps them maintain good social relationships with their clients by providing them with complete transparency.
- The information is kept confidential: the ethical code prevents both parties involved, from distributing information about the other without any legal declarations.
- It also states that the accountant needs to be knowledgeable and must have financial literacy: with the ever-advancing technologies and the fast-paced developments in each sector, even the accountants need to stay up to date, hence, the book becomes your guide to teach you the right ways to understand money better and develop a mindset about money.
- Tax payments: as companies are under obligation to pay taxes on time and have correct information filled for clarity, the ethical code helps them understand the process better and the need for it to keep their company safe and clear.
Financial planning and understanding the role of ethical code in accounting comes from experience and knowledge, thereby it is a necessary element to be educated about if you have a money-making mindset.