Momentum accounting and triple-entry bookkeeping
Momentum accounting and triple-entry bookkeeping are ways to keep track of financial activity. Momentum accounting is all about capturing the movement of money and resources, while triple-entry bookkeeping is a type of accounting where three different parties (like a bank, company and/or customer) track and record every financial transaction.
Think of it like this: imagine you have a piggy bank. Whenever you put money in the piggy bank, you would need to keep track of how much money is in it and what it was used for. Momentum accounting and triple-entry bookkeeping is the same thing, but instead of a piggy bank, it is used to track finances and other resources like stocks, bonds, property, and more. Every time money is moved, it needs to be noted down. This way, everyone involved knows exactly how much money is in the piggy bank, who it belongs to, and how it was used.
Think of it like this: imagine you have a piggy bank. Whenever you put money in the piggy bank, you would need to keep track of how much money is in it and what it was used for. Momentum accounting and triple-entry bookkeeping is the same thing, but instead of a piggy bank, it is used to track finances and other resources like stocks, bonds, property, and more. Every time money is moved, it needs to be noted down. This way, everyone involved knows exactly how much money is in the piggy bank, who it belongs to, and how it was used.