Who’s Invited to Innovate?

This week let’s discuss the innovation process. I’ve found that meetings, particularly face-to-face meetings, can be very helpful in finding ways to solve difficult problems through innovation. A face-to-face meeting helps to focus the participants on the problem, by having them with each other. Proximity is a large determinant of priority, and when people come together for a meeting, it is a little bit harder … Continue reading Who’s Invited to Innovate?

Estimates of Chart of Account Elements

Dr. William McCarthy recently asked me, “Can you guess for me: What is the average G/L code block size in small, medium, and large enterprises? And what is the average number of G/L accounts in small, medium, and large enterprises (thousands, millions)?” Below is my answer to this thoughtful question. Typical General Ledger Chart of Accounts The following table gives my best guess at what … Continue reading Estimates of Chart of Account Elements

Sample Ledger Data in a Bank Statement

In this week’s conversation, I use a simple financial statement to give a sense of the data structures involved in any true ledger. Any financial statement gives a good sense of the data structures involved in almost all financial systems. These can be vendor or customer statements, checking, savings accounts or credit card statements, or financial reporting statements. In all these statements, the most important … Continue reading Sample Ledger Data in a Bank Statement

Our Need for New Financial Systems

This week’s conversation likens James Madison’s work prior to the US Constitutional Convention to some of my work on financial systems. In 1786 Mr. Madison spent perhaps four months preparing for the US Constitutional Convention by reading numerous books about differing forms of government. On a recent visit to his home, I asked a docent at his library what that had done. She explained that … Continue reading Our Need for New Financial Systems