Double Entry: How the Merchants of Venice Created Modern Finance Hardcover – October 1, 2012

Double Entry (AKA Debit/Credit)

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My Opinion

December 11, 2012

Format: HardcoverVerified Purchase

This is an amazing story of the birth of the accounting method known as "double entry" that is still used today. As an accounting major in college, I remember hearing the name Luca Pacioli, but none of my accounting courses dwelled on the man or the time in history that he occupied. After working in the accounting profession as a certified public accountant and as a corporate financial officer with a publicly-traded corporation, I have finally learned of the origins of my profession.

The history that the author explores is fascinating. From the development of double entry accounting to aid the merchants of Venice to the spread of knowledge throughout Europe as a result of the printing press, the reader will be lead on a journey on the development of capitalism as we know it today.

In my opinion, the author has been somewhat harsh in judging the auditing profession, because of some major accounting frauds, which have been highly publicized. Having been a part of the profession and having worked on the other side of the table, from my view point, the profession, in my opinion, is highly ethical and I am proud to have been a part of it. Having said that, I do agree that there have been some real blunders on the part of certain individuals, intentional, as well as unintentional, which have cost investors a lot of money.

The only puzzling thing about the story is the author's criticism that the double entry accounting system isn't being used to account for the depletion of the natural resources and harm to the environment in calculating Gross National Product. The story opens with a speech by Robert F. Kennedy wherein he comments that GNP does not account for the destruction of our nation's environment, the health and welfare of our citizens, and a number of other intangibles that make life worthwhile. At the end of the book the author devotes a whole chapter to this subject.

At first, I found the discussion annoying; however, after thinking about it, I found it to be thought provoking. I am still thinking about how double entry accounting could ever account for such events. Generally, speaking, "cost" is the basis for almost all accounting transactions. There are times when judgment is needed to make allocations between accounting periods, such as the computation of depreciation or the calculation of loss reserves, but the underlying concepts are based on "cost". So what would be used to account for the destruction of our environment or the depletion of the country's natural resources? I don't think the cost of the Louisiana Purchase would provide any meaningful information. Perhaps, this is an assignment for the academics in our universities.

Again, I found this whole discussion puzzling and started to wonder if the author was only writing about the history of double entry accounting to establish a platform to discuss a more esoteric topic. Nevertheless, I did enjoy the book.

3 people found this helpful

a fascinating history of accounting

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Renato Baserga

December 13, 2012

Format: HardcoverVerified Purchase

I use it every year when I file my income tax, but I never thought that accounting could be a fascinating story. The first half of this book is definitely first class, from the discovery of the arabo-indian (or Indian?) numerals in the West with Fibonacci (12th century) to the double entry that Venetian merchants began about the same time, although Pacioli did not finalize it until the 15th century.The narration by Jane Gleason-White is like reading a mystery boook, cannot put it down. The 2nd half of the book is more ordinary, with well known refrains I agree with but they are of no use to to-day's merchants, whose double entry has simply been transformed into double income. All n all, a good book.

5 people found this helpful

Understanding the history of "Double Entry" is table-stakes for anyone in the CPA profession.

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Private

December 16, 2013

Format: Kindle EditionVerified Purchase

This isn't a book for just anyone .... if you have any background or interest in finance, accounting, bookkeeping, etc then yes, it's a fascinating read. A liberal arts student with a social work background would probably find it excruciating. Since I'm a CPA with a deep interest in the application of technology to accounting I was hooked early. It's surprisingly interesting and the author does a great job of weaving history, legend, and assumption into a pretty solid fabric. I loved the flash of understanding that helped me realize that the "language of numbers" significantly predates any other form of written language. Interesting! And who knew that it was the "double entry method" that caused the demise of the common use of Roman numerals! So THAT'S why XXX has such a different meaning today!

Highly recommended to all my friends in the profession.

Gregory L. LaFollette, CPA.CITP. CGMA
VP Product Strategy -- CPA2Biz, a subsidiary of the American Institute of CPAs

great & fasinating history

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Most recent customer reviews

C. A. heldt

Four Stars

Published 10 days ago

Kind of informative

It's exactly what I expected it to be but not in a good way

Published 1 month ago

sls4ak

I enjoyed it very much.

I would have liked more Pacioli translations and analysis / direct correlations to modern examples, less left leaning political soap box.Read more

Published 8 months ago

DrummerGirl

Three Stars

Very interesting until it careens off into climate change politics..then I closed it up.

Like where did this start

Rip

Learned things that used to puzzle me before. Like where did this start?

This book confirms what I think I already knew. ...

Peter394

This book confirms what I think I already knew. The double entry system is the one and only significant invention of the accounting industry.Read more

Could have been an interesting book

barthgimball

Could have been an interesting book, but author has a ponderous style.

A blatant copy of The Reckoning by Jacob Soll.

Amazon Customer

One Star