For headcount tracking, this means tracking individual people. If you just maintain a dollar balance figure, and you add/subtract from that directly, you will very quickly get to a spot where your balance is incorrect, but you are not sure why. In dual-entry accounting for finances, you track individual transactions, tally those into account balances, and double-check the balances against reality. Like any form of accounting, you need to start with raw row level data. For larger organizations, you may run into problems keeping the data updated across many different teams and managers. For smaller organizations, you can keep track of this all in your head and not miss anything. This is probably most useful for organizations between 20 and 100 people. But, if you build a practice of documenting employees, new hires and open headcount in a spreadsheet, you can quickly answer such questions with accuracy. While the simple question of “how many people work here?” should be easy to answer, even slightly more nuanced questions like “who is on which team?”, or “how many people have we hired that have not started yet on these three teams?” can quickly turn into one-off manual fact finding and counting exercises.
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