Financial Auditing: Quality Control for Metric Engines

This week’s episode discusses Financial Auditing, and why it is important to financial reporting; it is the quality assurance process. Any metric engine or report process should have some method to test quality of the outputs. Bayonet the Wounded I worked as a financial auditor for two and a half years in my early career. During that time, as I would go to different businesses … Continue reading Financial Auditing: Quality Control for Metric Engines

Excel: The Scooter of Financial Reporting

In a number of my videos I’ve been on different modes of transportation, including a plane, a train, a taxi, a bus, a bike, and even an ill-fate attempt to video while walking. Today’s video is while riding a scooter. A scooter is the most nimble yet quick form of transportation out of all of them I’ve recorded on. In financial reporting, a spreadsheet is … Continue reading Excel: The Scooter of Financial Reporting

Accounting and Bookkeeping Series Review

In the last video of the bookkeeping series, I briefly review the steps of bookkeeping. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. This is Episode 219 of Conversations with Kip, the best financial system vlog there is.Literally learn more–about … Continue reading Accounting and Bookkeeping Series Review

Accounting Cycle Step 5: Create Reports

The last step of the Accounting Cycle is step 5, creating financial reports, including the Balance Sheet and Income Statement. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. Reporting The process of creating financial reports once the trial balance is … Continue reading Accounting Cycle Step 5: Create Reports

Accounting Cycle Step 4: Trial Balance

Discusses step 4 of the Accounting Cycle, creating a trial balance, and its relationship to the general ledger before it and reporting processes after it. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. Change in Frequency Steps 1 – 3 … Continue reading Accounting Cycle Step 4: Trial Balance

The Value of Data Part 2: The Data Supply Chain

In the previous post, The Value of Data Part 1: Business Functionality I discussed the costly process of capturing attributes of business events, and the value in understanding them over time. In this post I’ll discuss various types of business events and their potential impact and use in financial and analytical processes. Data Supply Chain Defined A data supply chain is defined as a process … Continue reading The Value of Data Part 2: The Data Supply Chain

The Value of Data Part 1: Business Functionality

Optimizations verses Functionality An expert recently said to me that the most important optimizations of systems need to be identified at the appropriate time. Trying to identify and create them too early can affect the design of the system, negatively impacting functionality and flexibility. In other words, the optimization can become more important than the functionality, compromising the over results of the system design. I … Continue reading The Value of Data Part 1: Business Functionality

Accounting Cycle Step 3: Post to Ledger

This week’s post discusses step 3 of the Accounting Cycle, posting to the general ledger, the nature of roll forward balances and accounting periods. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. 3 Books of Bookkeeping Historically, there were three … Continue reading Accounting Cycle Step 3: Post to Ledger

Accounting Cycle Step 2: Create Journal Entries

Discusses step 2 of the Accounting Cycle, creating journal entries, the “flow” of data through accounting, and the purpose of debits and credits. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. Flow of Data Bookkeeping is a very sophisticated (even … Continue reading Accounting Cycle Step 2: Create Journal Entries

Accounting Cycle Step 1: Execute Business Events

This week we discuss step 1 of the Accounting Cycle, executing business events, and the relationship to financial transactions and the world of measurement. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. What’s a Business Event Business Events are broader … Continue reading Accounting Cycle Step 1: Execute Business Events