Sam Hartman (hartmans) wrote,
Sam Hartman
hartmans

Accounting

I think I finally got the basic concept behind double entry bookkeeping. I've understood the rules for a while, but it hit me yesterday that all they are really saying is that the money you have plus the money you've spent better be the same as the money you owe, plus the money you've made plus the money you'd get to take away if you closed up shop. Of course there's a lot more complexity than that--and I actually think I already understood a lot of the complexity that an average person needs to understand. I was just missing the central concept.
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