Momentum accounting and triple-entry bookkeeping

"Triple-entry accounting" redirects here; not to be confused with Triple bottom line.

Momentum accounting and triple-entry bookkeeping is a theoretical accounting framework proposed by Japanese economist Yuji Ijiri.^[1] It was designed to address perceived limitations in double-entry bookkeeping. The system emphasizes the tracking of changes in account balances, particularly in revenue generation and cash flows. While double-entry records each transaction with two entries (typically a debit and a credit) on a specific date, momentum accounting recognizes changes in balances as key events. Momentum accounting introduces the concept of tracking the rate of change in financial variables over time, rather than static balances alone. Unlike double-entry bookkeeping, which captures transactions at a single point in time, momentum accounting emphasizes continuous financial flows and trends. Under this system, a consistent increase in revenue is recorded through an additional entry representing the rate of change, distinguishing it from other double-entry systems.