Finance Inventory: Master Files

This week’s episodes builds on an idea from Episode 98 Balances are the Inventory of Finance. Where are these balances maintained? Many are maintained in things called ledgers. But they are also at times simply called Master Files. Finance certainly facilitates accurate recording of transactions. But little reporting is done about transactions themselves. People are interested in balances–something that states a position as of some … Continue reading Finance Inventory: Master Files

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

Shared Ledger R&D Results: A Recent Expert Review

Today I’m releasing what I think is a very comprehensive view of my work efforts over the last number of years on ledger reinvention.  This is a video filmed in May at a presentation to alum of Geneva/SAFR practice from 30 years of work together. This wide ranging discussion covers topics such as What is the purpose of the General Ledger, What is the CFO’s … Continue reading Shared Ledger R&D Results: A Recent Expert Review

Business Rules, Source Data, and Code Synchronization

This week’s episode discusses how (1) source or transactional data, (2) reference data and rules, and (3) the application engine must be synchronized to arrive at the desired answers. To produced ledgers, metric engine environments or reports that contain meaningful results, the source data must be created in ways that are very consistent; that typically means bringing together all of the elements listed above. If … Continue reading Business Rules, Source Data, and Code Synchronization

Business Rules vs. Reference Data

This week’s episode of Conversations with Kip discusses the need to maintain lists of reference data values, that then are embedded into various rules, and the impact if those are not valid values. Reference data is typically lists of things, like chart of account numbers, products, services, people or organizations.  These values are maintained independently from the rules. On accounting rules, we are often translating … Continue reading Business Rules vs. Reference Data

Business Rule Structures

This week we begin a series of videos to discuss business rules in the finance system. Today’s episode discusses the general structure of business rules, either table or if-then-else structures, and compares and contrasts those approaches and their use. The following extract from my textbook, Balancing Act, Chapter 59, gives a sense of the choices: Tables are easily thought of as spreadsheets, with rows and … Continue reading Business Rule Structures

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

Proposed TED Talk for High School Freshman: Ledger Innovation

I recently was asked to present for a second time about my career to a local high school freshman class, and wondered if I could make the subject matter interesting. So I spoke in the form of a proposed TED Talk on financial systems and ledgers. I talked about how computers have changed the world in the course of my lifetime; I asked them for … Continue reading Proposed TED Talk for High School Freshman: Ledger Innovation