GAAP is the abbreviation for Generally Accepted Accounting Principles.  After law school, I worked for KPMG-Omaha as an auditor and tax accountant.  I’ve lost much knowledge since I haven’t been in public accounting for some time, but I can still kinda speak the language.  (Cue DK or Stu or Pete or some other sharp accountant to flame me in a minute.)

A common line item on a balance sheet is Accounts Receivable, which, as the name implies, is an asset.  Someone owes you money.  (That Someone’s balance sheet has an Accounts Payable line item.)  You’ve provided a product or service and completed the work and now await payment.

My and your lives have Accounts Receivable.  We’ve done stuff for ourselves and others, and we’ll be paid back at some point–whether today, next week, next year, or in 4 decades.   Building one’s life means considering what type of A/R  we’re generating.  And normally, good A/R is tough to build.  Workouts are hard if done well.  Workdays require effort, persistence, and concentration.  Raising littler people correctly may be the toughest A/R to generate, but think of  the payoff.  Work and think hard.  You’ll build good A/R.

OK, enough seriousness.

When my nephew Zach was 3, he rode with his dad to a jobsite in the country.  (Recall that Bill drills water wells.)  They passed a hog farm.

Zach:  Ew, dad, that stinks (in 3 y.o.-speak).

Bill:  No, son, that smells like money.

Subsequently, Bill and Wife Tonya go to Vegas.  Uncle Dan gets one day of prison duty with Zach.  We’re watching TV when he beelines to the bathroom off the living room.  Upon completion of his task, Zach stands in the doorway, staring at me.  After I tell him that he’s too old to require an assist, he turns back to the toilet, leans over, and takes a mighty wiff.

Zach:  Smells like money!!


Here’s the Z-Man now with his Taylor Swift lookalike girlfriend.


4 Comments on “GAAP”

  1. Debbie says:

    Our friends the Griswolds (aka Raymers) are pig farmers. They have a sperm carrier business as well. Eeewwwww! But you’re right, that smell is M O N E Y!

    • Roger Sahs says:

      It can be M O N E Y as in profitable if they…
      Know their production costs and compare actual vs planned on a regular basis.
      Don’t settle for “average”.
      Expand cautiously.
      Watch Uncle Sam…IRS rules/regs as well as the USDA.
      Don’t tolerate assets that don’t produce.
      Take advantage of new technologies that will increase productivity.

      Lots of hog producers have lost tons of M O N E Y not following these simple rules…

    • The DA Blog says:

      How do they pick up those little guys? Something to ponder …

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