Digital Financial Reporting

In his book, New Rules for the New Economy, its author Kevin Kelly helps you wrap your head around how the future will likely work. Many things in the new economy (i.e. economics of digital) will not work like they did in the old economy.  Believing that things will work the same is a fundamental mistake.  This is Kelly's description of the book:

The thesis of New Rules for the New Economy is that we are now living in an economy based on ideas and communication rather than energy and atoms. Further, this "new" economy has distinct laws or rules so it behaves differently than the previous industrial economy. To do well in the new regime, we need to grasp the new dynamics of information. I reduce the emerging principles to 10 guidelines, and suggest a few strategies for businesses based on each principle.

(You can get the book on Amazon here. You can download the free PDF here.)

Here is a summary of the rules:

1. Embrace the Swarm.
2. Increasing Returns.
3. Plentitude, Not Scarcity.
4. Follow the Free.
5. Feed the Web First.
6. Let Go at the Top.
7. From Places to Spaces.
8. No Harmony, All Flux.
9. Relationship Tech.
10. Opportunities Before Efficiencies.

Accounting, reporting, auditing, and analysis are evolving.  Be sure to read my blog post The Economics of Digital for CPAs. Understand the role of XBRL in this new economy. Understand how to use XBRL-based financial reports effectively. The old industrial economy and the new information economy will not work the same.  We all need to grasp the dynamics of information.

Don't think data, think information. Big, big changes are on the way.

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The Network State