The Fascinating History of Double-Entry Bookkeeping: A Review of Jane Gleeson-White’s “Double Entry”
I read a book that should be read by all business students, grad and undergrad, and remain on their bookshelves next to all the other classic business books.
Double Entry by Jane Gleeson White
The book’s title is Double Entry and it’s written by Jane Gleeson-White. It is about the “father” of double-entry bookkeeping, Luca Pacioli, a Franciscan monk and mathematician who also taught mathematics to Leonardo da Vinci. He also wrote a 27-page book on how mathematics works in commerce.
Jane was working in Italy for the Peggy Guggenheim Museum in Venice when she began to question the source of the wealth that allowed all the great artists to make a living. It appears that the movement of people from Europe through northern Italy, to fight in the crusades, caused a great deal of commerce for the cities of Pisa, Genoa, Florence, and Venice. This wealth allowed the great painters to earn a living by selling their skills to the populace. I guess there is money to be made in war.
By digging deeper into the science of tracking money, Jane discovered that the Roman and Greek elites were really into tracking their wealth. It was mandatory for the upper class to know where they stood financially. The need to track financial transactions led to the act of keeping a set of books. Pacioli is credited with giving the world the double-entry system, which means that for every amount of credits there’s an equal amount of debits.
This book offers a great look at the business world in the 1400’s, how the free market system improved the region, and the art of accounting. Or is it a science? Hmmmm.
A Couple of Takeaways from This Book:
- Pacioli made a living as a tutor to the children of the elites. His specialty was the use of the abacus. Pacioli’s life spanned from 1446 to 1577. A little over 100 years earlier, Marco Polo lived, and he is known for his travels to China. Did Marco Polo bring the abacus to Italy? Did Marco Polo rip off the Chinese intellectual property known as the abacus? Did Pacioli’s bishop or Pope know about this side hustle? Did Pacioli abide by a vow of poverty? Did he tithe 10% or 100% of his earnings from this tutoring job? Could Pacioli be considered an unindicted co-conspirator of Polo?
- During this time, the merchants were subject to a new way of expressing the number of units. This new system is called the Hindu-Arabic numbering system (1, 2, 3, 4, etc.), and even though it was much easier than the Roman Numeral system, it took Europe 300 years to fully adopt it. Could anyone imagine doing geometry using Roman numerals? Could you imagine writing Pi to the 10th decimal place in Roman numbers?
- Isaac Newton lived from 1643-1727, or about 150 years after Pacioli. He published his Laws of Motion in 1687. His third law of motion states that for every action, there is an equal and opposite reaction. Did Newton rip off Pacioli’s principle that for every debit there’s a credit? Hmmmm.
The more you study history, the more you question it.
And you thought accounting was boring!!
Buy the book. It’s a magnificent read.
Frequently Asked Questions About Double-Entry Bookkeeping
Who invented double-entry bookkeeping?
While double-entry bookkeeping existed in various forms before him, Luca Pacioli, a Franciscan monk and mathematician, is credited as the “father of accounting” for documenting and standardizing the double-entry system in his 1494 work. Pacioli lived from 1446 to 1517 and also served as a mathematics tutor to Leonardo da Vinci.
What is double-entry bookkeeping?
Double-entry bookkeeping is an accounting system where every financial transaction is recorded in at least two accounts—as both a debit and a credit. This means that for every amount of credits, there’s an equal amount of debits, ensuring that the accounting equation always balances.
What is the book “Double Entry” by Jane Gleeson-White about?
Double Entry by Jane Gleeson-White explores the history of double-entry bookkeeping and its inventor, Luca Pacioli. The book examines how Renaissance Italy’s commerce boom, fueled by the Crusades, created the wealth that supported great artists and necessitated sophisticated accounting systems. It’s an essential read for business students and anyone interested in the intersection of mathematics, commerce, and history.
How did Renaissance Italy contribute to modern accounting?
Renaissance Italy, particularly cities like Venice, Florence, Genoa, and Pisa, became wealthy trading centers due to commerce generated by the Crusades. This economic boom created the need for sophisticated financial tracking systems. The adoption of Hindu-Arabic numerals (replacing Roman numerals) and Pacioli’s documentation of double-entry bookkeeping established the foundation for modern accounting practices.
Why did it take 300 years for Europe to adopt Hindu-Arabic numerals?
Despite the Hindu-Arabic numbering system (1, 2, 3, 4, etc.) being much easier than Roman numerals, Europe took approximately 300 years to fully adopt it due to resistance to change, religious and cultural conservatism, and the established infrastructure around Roman numerals. Imagine trying to do complex geometry or calculate Pi using Roman numerals—the new system was revolutionary but required a cultural shift.
What is the connection between Luca Pacioli and Leonardo da Vinci?
Luca Pacioli served as a mathematics tutor to Leonardo da Vinci. As a mathematician and accounting expert, Pacioli taught da Vinci mathematical principles that influenced the artist’s work. This relationship highlights how Renaissance Italy’s intellectual culture connected mathematics, art, and commerce.
Is accounting an art or a science?
This is a question that has been debated since Pacioli’s time. Accounting combines both artistic judgment (in interpreting and presenting financial information) and scientific rigor (in applying mathematical principles and systematic methods). The double-entry system itself is a scientific framework, but its application often requires the artistry of professional judgment.
Should business students read “Double Entry”?
Absolutely. Double Entry should be on every business student’s bookshelf alongside classic business texts. It provides essential historical context for understanding modern accounting, shows how economic systems evolved, and proves that accounting is far from boring—it’s a fascinating story of innovation, commerce, and human ingenuity.