Accounting for Rationality: Double-Entry Bookkeeping and the Rhetoric of Economic Rationality

This article addresses claims made by Weber, Schumpeter, and Sombart concerning the importance of double-entry bookkeeping. They argue that accounting played a key technical role in enhancing rationality and furthering the development of capitalism methods of production. The history of accounting methods and practices from the Middle Ages to the 19th century is surveyed in order to evaluate these arguments. Two important dimensions of accounting are discussed: the rhetorical and the technical. The argument is that, as rethoric, accounting must be understood as an attempt to convince some audience of the legitimacy of business ventures. Goody's analysis of writing and literacy is applied to the development of accounting as a technique. As a practical method, double-entry bookkeeping appears to have increased "rationality," but the rhetorical side of double entry is also critical. The conclusion is that the significance of double-entry bookkeeping can be appreciated only if its rhetorical and technical aspects are considered.