alt Hacker News>I never understood double entry bookkeeping
It only makes sense in the context of a company. Yes you can shoehorn it into a personal context and/or treating it like some sort of database like hn's accounting posts love to do but that's not what the real accounting world looks like at all.
An accountant armed with a low/no code solution isn't going to write great code. That I think is obvious to every hn reader. But somehow hn gang think they'll reinvent a system that has been in place for 100s of years because it's backed by a different DB tech that's better suited to double entry.
I know a decent bit of both worlds so that disconnect in perceptions always amuses me.
[As a side note I don't think the average tech guy gains much from learning "accounting". Even that is a complete misunderstanding of what it is. Unless you're dealing with cap tables and corporate structuring you're better off doubling down on personal finances & taxes and risk management...not double entry]
edit: yes am accountant, yes can code..rust and python mostly, not amazing at either
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> It only makes sense in the context of a company.
Don't you think it can make sense in terms of pension contributions?
I used to track my finances very carefully (but now I'm more lackadaisical). Double entry would've been helpful for "I'm taking money from this pocket and putting it in this pocket".
> I know a decent bit of both worlds so that disconnect in perceptions always amuses me.
Double-entry bookkeeping was from its inception an error-correction code that could be calculated by hand.
Modern databases contain much more powerful error correction methods in the form of transactional commits, so from a pure technical point, double-entry bookkeeping is no longer needed at all; that's why programmers have a hard time understanding why it's there: for us, when we store a value in the DB, we can trust that it's been recorded correctly and forever as soon as the transaction ends.
The thing is, cultural accounting still relies on the concepts derived from double entry bookkeeping as described in the article; all those assets and debts and equity are still used by the finances people to make sense of the corporate world, so there's no chance that they'll fall out of use anytime, at least 'in the context of a company' as you out it.
Now would it be possible to create a new accounting system from scratch that relied on DB transactions and didn't depend on double entry? Sure it can, in fact crypto coins is exactly what happens when computer engineers design a money system unrestricted from tradition. But in practical terms it still needs to relate to the traditional categories in order to be understood and used.