This week’s video begins to digest the bookkeeping portion of Pacioli’s book, talking about his focus on being ethical, and why that is important.
Pacioli, in the first page of discussing bookkeeping, says: “In the business world, nothing is consider more important than the word of a reputable businessman. Promissory notes are honored and accepted based upon a businessman’s reputation. Confidence, faith in reputable businessmen, is what makes the market effective. This is not really strange, for the faith of a Christian in God works in much the same way to make religion effective.”
It is very clear that bookkeeping, good bookkeeping, was a means of increasing respect and confidence of others in the business person. We all want to do business with people who remember their commitments, who do what they say they will do, who track accurately our interactions, and who correct mistakes quickly if they are made.
Honesty and integrity provide a competitive advantage in “…the goal of every businessman who intends to be successful, is to make a lawful and reasonable profit.”
Making a profit is not easy; every competitive advantage should be used. Good bookkeeping increases our effectiveness as business people. And good bookkeeping is built upon honesty and integrity.
This is Episode 115 of Conversations with Kip, the best financial system vlog there is.
For those who can’t wait for to learn more from next week’s video, you can find an English translation of Pacioli’s book I’ve quoted from by Jeremy Cripps here. The full book in original Italian can be accessed here. The accounting section begins on printed page 197 through page 210.