The Bible contains various illustrations that teach essential concepts in the world of modern economics. Biblical principles have found applications in the field of personal finance touching on savings, lending, loans, and giving. Accounts of usage of accounting and finance concepts date back to ancient times, and there are actually over 2,300 verses in the Bible teaching on the subject of money and possessions and management of the same (Herda et al., 2013) The verses in the Bible touching on the subject of money and possessions and their stewardship are three times more than those on love ( Liang, 2012).
In the New Testament, Jesus was teaching Pharisees on the subject of money management. He explained that if a person has a plan on building a house, proper budgeting beforehand is necessary making sure that sufficient funds are available to complete the house. Though it was a parable, it shows that concepts of finance in budgeting were in use during the time. A project’s first step is a plan, a budget (Luke 14:28 New Living Translation).
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The modern concept of accounting requires a manager to track, record and report on the stewardship of resources under him. A similar approach is used in the Bible as it teaches on tracking and maintenance of excellent documentation of money entrusted. In the book of Proverbs, a steward is required to know the condition of his flocks, give attention to the herd, as riches do not endure forever (Proverbs 27:23 New International Version). In the Bible, wealth was in the form of herds and flocks and getting to know the condition of money and pay attention to the finances. Getting to know the status of money usage is by keeping an accurate report using accounting principles.
Budgeting is a critical component of modern financial planning and management, and the same concept was applied in the Bible. Bible teachings on planning for money is that the wise plans ahead and fools live for the day. A business is founded and expended through thoughtful planning, grows strong and profits realized. Ideas of a shrewd executive achieve a benefit and those of haste only guide to poverty (Proverbs 21:5 New International Version)
Savings is another classic example of Biblical conception relate to lessons of accounting and finance. In Proverbs, 21: 20 explains that the wise save for the future but the stupid waste whatever they get. Setting some money aside is wise in the view of Gods words and the same concept is used by companies to set reserves from the profits for future use (Proverbs 21:20 New International Version).Among other biblical thoughts on finance and accounting is found in Luke 16: 2, Jesus called a man and asked him to give an account of his management, as he could no longer continue as one (Work, 2019). There is clear evidence that accounting was used as a control tool in ancient human history.
Although the Bible holds several accounting and finance concepts that complement modern accounting principles, there is a sharp contrast and misunderstanding between some biblical principles and advanced ideas. Modern accounting and finance concepts focus on gaining financial freedom and independence through saving whereas the Bible teaches that financial independence is sought through giving based on the provisions and promises made by God. Modern finance objective is to maximize revenues and profits within the lowest possible risk while the Bible often teaches and advocates for surrender to the course and risk-taking ("The Biblical Use of Money: Are Faith and Finance Compatible?", 2019).The bible also focuses on contentment with what one has. Proverb 15: 16 says it is better to have modest money, with God’s fear than have more wealth but with inner turmoil. (Proverbs 15:16 New Living Translation). In the modern concepts of accounting and finance, there are no revenues or cash flows that businesses are contented with, there are always greater targets to achieve, and this does not necessarily mean that failure to be contented can lead to diminishing fear of the Lord.
Modern principles of accounting and finance approach to giving are mostly through corporate social responsibility. The company attends to the unfortunate in society and contribute to humanitarian courses without expecting anything in return per se. The biblical concept of giving is different. Mathew 19:21 teaches that if one wants to be perfect, one has to sell everything has to get the treasure in heaven. “Go sell everything and give to the poor, then come follow me” (Mathew 19: 21 King James Version). The message on giving is a mixed one. Is it about the tithe, is offering all money out get prosperity back? The bottom line here is generosity without having to give all but sharing with those in need.
In conclusion, the ancient and biblical principles of finance and accounting are similar primarily to modern practices. Examining matters of faith and finance and accounting, the Bible is used as the focal point, and similarities include on the critical concepts of money management, planning and budgeting, savings and sharing with the less fortunate. However, there are areas that faith contradicts finance and accounting principles especially on giving and sharing to gain independence.
References
Herda, D. N., Reed, S. A., & Bowlin, W. F. (2013). the relationship between religious beliefs and
the accounting and economic practices of a society: Evidence from the dead sea scrolls.The Accounting Historians Journal, 40(2), 115-143. doi:10.2308/0148-4184.40.2.115
The Biblical Use of Money: Are Faith and Finance Compatible?. (2019). Retrieved from
https://www.biola.edu/blogs/business-ministry-life/2012/the-biblical-use-of-money-are-faith-and-finance-compatible
Liang, E. (2012). Modern Finance Through the Eye of Faith: Application of Financial Economics to the Scripture [Ebook] (pp. 1-7). Houston Baptist University.
Work, T. (2019). What Does the Bible Say About Finance? (Overview) | Article | Theology of
Work. Retrieved from https://www.theologyofwork.org/key-topics/finance
