Attributes of Financial Reporting and Financial Reporters

Today I release a series of videos about attributes of high quality financial reporting, based upon accounting standards. I also add to these my view of attributes of good accountants; what kinds of characteristics make them capable of producing good financial reports. When in college I was taught by Dr. Leon Woodfield about the Financial Account Standards Board (FASB)’s Statements of Financial Accounting Concepts. One … Continue reading Attributes of Financial Reporting and Financial Reporters

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

Batch verses Streaming Analytical Application

This week’s episode discusses the nature of batch vs. streaming analytical applications, and the relationship to balance creation and history requirements. Analytical processes are moment in time processes; one creates a balance which says at this point, here is how much has been done. These analytical processes typically do not line up with the nature of transaction processing. Transactions occur at different times than when … Continue reading Batch verses Streaming Analytical Application

The Problem with Financial Systems: An Overview

This week I release a discussion I had on the fundamental problems with financial systems held in Bangalore, India on April 10, 2018. To make the concept more approachable, I use personal financial examples to explain the structure of our financial data, and many of my quantitative insights about the nature of our financial systems problems. The following is an outline of the discussion. In … Continue reading The Problem with Financial Systems: An Overview

Human Scale of Reporting: A Conversation with Rakesh Kant

In the third segment of a Conversation with Rakesh Kant, an expert on financial and reporting systems, in Lucknow, India, April 15, 2018, we discuss that reporting requires that large amounts of data have to be reduced to something understandable to a human. As I have noted elsewhere, every answer to a reporting problem must fit in a spreadsheet–in fact in a small portion of … Continue reading Human Scale of Reporting: A Conversation with Rakesh Kant

A Conversation with Rakesh Kant: Right Hand Side, Left Hand Side

This week I begin a series of segments of a Conversation with Rakesh Kant, an expert on financial and reporting systems, recorded in Lucknow, India, April 15, 2018. This initial video frames the discussion of financial systems by breaking the problem into a Left Hand Side (i.e., Posting) from the Right Hand Side (i.e., Reporting) problem. The technology functions in both of these parts of … Continue reading A Conversation with Rakesh Kant: Right Hand Side, Left Hand Side

Balances in Financial Services Sectors

This week’s episode focuses on the data required three major financial services sectors, Financial Markets, Banking, and Insurance, focusing on the need for various balances, and length of time in perspectives. Financial Markets–effective any traded financial asset–typically has the highest turnover in data, and perhaps the lowest need for balances of various types.  Trades may be made and sold frequently; transactions may not be accumulated … Continue reading Balances in Financial Services Sectors

Blockchain Gap: Posting Process

We’ve discussed the blockchain gaps of liquidity management, double entry accounting, and reporting integration.  This week’s episode discusses posting processes. The purpose of posting processes is almost forgotten in today’s world of ubiquitous computing.  But they are still used in nearly every major business process–every ledger–to state a position as of a point in time. All analytical processes begin with a balance, with a position. … Continue reading Blockchain Gap: Posting Process