Vector Accounting

I want to thank Irus, who added a comment to an earlier post, for the use of the term "vector" to describe the approach that I am using to clarify the process of accounting. A vector is a quantity that has both a magnitude and a direction. This is exactly what a debit or credit entry is. The magnitude is the monetary amount of the entry and the direction is either "in" (debit) or "out" (credit). Accountants have been recording vectors into data warehouses for five centuries; they just did not know it and have failed to use the resulting powers.

For more on vector accounting, see the blog at http://taofinancial.blogspot.com/. Also, get a free electronic copy of my two books, The Tao of Financial Information and Banking the Past, by sending me an email at rob.meldah@gmail.com.