Thinking of the Balance Sheet as a Wallet

Non-bookkeepers tend to focus on income and expenses and ignore the Balance Sheet accounts (assets, liabilities, and equity). This can lead to all sorts of problems, like overdrawn bank accounts, unpaid bills, duplicated transactions, understated income, understated expenses, and more.

I find that it can be helpful to think of your Balance Sheet accounts as different pockets within the same wallet. This video walks you through the concept.


 

Illustration of an analog numeric typewriter, superimposed on a paper chart of printed numbers.

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The Utopia of Rules

Last week, I wrote about David Graeber’s The Utopia of Rules: On Technology, Stupidity, and the Secret Joys of Bureaucracy in the context of Fortnite Battle Royale.

There, Graeber’s most salient observations had to do with the similarities between fantasy role-playing games and accounting, the role of comics in socializing future leaders, and the tension between the fun of rules-based games and that of anarchic play.

That’s certainly an idiosyncratic list of topics to find in a book that is ostensibly about bureaucracy, and still it doesn’t begin to show the extent of the ground that Graeber covers.

It’s a testament to the fact that bureaucracy—the use of impersonal rules and procedures to regulate public life—is so deeply embedded in our lives that I have a hard time thinking of a society that gives a sharp enough counterexample the make it concisely clear what Graeber means by “total bureaucratization.” Continue reading “The Utopia of Rules”

Getting the Future Wrong: Xerox’s Hardware Solution to Software Problems

In 1965, Xerox made a 14-minute-long video ad for the Xerox 2400 photocopier, and I’ve been tickled by it ever since I first saw it years ago. Not only does the ad, titled “What’s the Difference?” illustrate how many steps the Xerox 2400 can eliminate from the process of short-run duplication,

The Xerox 2400 reduces the steps in the short-run duplication process from seven to two.

it also notes that since xerography is a dry process, as the name suggests, it keeps printers’ and office workers’ hands clean.

No more stained fingers, no more smudged documents.

Even better, with just a handful of simple techniques,

Just use overlays to add, delete, and substitute.

the Xerox 2400 not only duplicates documents but also facilitates the creation of new ones. The video devotes a good three minutes to demonstrating how this will revolutionize the sales order and invoicing system, the purchase order system, and production order system.

The ad closes by noting that the Xerox 2400 is so easy to use that not just women, but even children can do it.

In her book, Marriage, a History: From Obedience to Intimacy, or How Love Conquered Marriage, Stephanie Coontz conveys the contemporary appeal of such advertisements, which seem so strange to us today. Continue reading “Getting the Future Wrong: Xerox’s Hardware Solution to Software Problems”

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