It has been said that pre-numerical counting systems pre-dated the written language. Business accounting is rooted in the organization of monetary claims throughout the history of the Western civilization, developing even before the ancient accountants could note the mathematical entries. Beginning in Mesopotamia around 3500 B.C, and developing throughout the 14th century in Europe, accounting has become one of the largest advancements in the Western world. This long standing form of collaborating financial data has evolutionalized the way we approach business in the 21st century. While today's accountants are involved in the analysis of financial data and the auditing of cash flow through a corporation, this hasn't always held true. The recording of financial transactions dates back to B.C with the use of clay tablets written by scribes, this process developed through the Eastern world gaining popularity through the Industrial Revolution when the accounting foundations were brought to the American land. As the career begins to take the driver's seat in the public sector, we must evaluate the evolution of the financial field while we continue to develop new ways to serve the money centered world we inhabit. Thousands of years before the emergence of organized accounting, the Mesopotamians were beginning to increase agriculture production, and as they did the civilization began to seek structure in the recording of transactions for extended credit terms on gold and silver. Those responsible for this organization and coding of trades and sales in the area were referred to as scribes. These scribes noted the transaction, usually on a clay pad, and ensured the agreement followed all rulings by Sumerian government. During a trade, b... ... middle of paper ... ...e organization of the financial script throughout the history of the Western civilization. Beginning in Mesopotamia around 3500 B.C, and developing throughout the 14th century in Europe, accounting has become one of the largest advancements in the Western world. This long standing form of collaborating financial data has clearly evolutionalized the way we approach business in the 21st century. Computing for monetary record dates back to B.C with the use of clay tablets written by scribes, this process developed through the Eastern world gaining popularity through the Industrial Revolution when the accounting foundations were brought to the American land. We must always remember our roots in the West as we continue to develop new ways to serve the money centered world we inhabit, for as the famous proverb goes, “the past is simply a window to the future.”
Although, it can be argued that the merchants of Venice created modern finance, they cannot be credited with the initial idea of double-entry accounting. The roots of double-entry accounting and accounting as a whole, can be traced back much further. Centuries before the Venetian merchants began using double-entry accounting, other businessmen were accounting for their transactions with a method that used two pages of paper, one for the person who received money or property and another for the one who gave it. Although, accounting records had been kept in some form for hundreds of years prior to the developments of the Venetian merchants, the merchants of Venice are believed to be the first to use a method that required two entries for each transaction. By requiring two entries, the Venice merchants could easily see if their books balanced. This form of record keeping also made it easier for the merchants to compute different figures such as profit, which was not a common idea at the time....
Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254.
Lucas Pacioli was the first to describe a system of debts and credits in accord with journals and ledgers in 1494. These basics came together to be the concoction for what is known as accounting. Since the formal establishment of accounting in 1494, the field has expanded as the demands of the ever-changing economy became greater. The industrial revolution created the first jump in the field forcing the creation of sectors within. Since this first creation of sectors, accounting as a field has been creating more specific sects to accommodate a large variety of areas. The most common and large sects created this far include public and private accounting. Although both sects carry the same basis for their work, the variation between the two lies in their demographic, demands, and decoration.
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
Some of the earliest forms of writing were on clay tablets from the Middle East and date back to around 3000 B.C.E. After translation, some of these tablets were found to be records of taxes. Human beings have recorded accounting transactions for the last 5,000 years. Accounting could arguable be the oldest profession for humankind.
At a glance, accounting might appear as a repetitive cycle of preparing and examining financial statements. However, a brief exposure to accounting has taught me how chaotic it can be for accountants. An accountant captures and represents the information of businesses. By reviewing financial operations, an accountant helps a business run efficiently. This profession can be intellectually stimulating and rewarding. After learning about accounting, I cannot help but be interested and desire to work toward a degree in accountancy. In my studies, I have learned accountants require a plethora of qualities to be successful. And to mature from a student to a professional, I must resolve to strengthen my weaknesses. There is much I must learn and achieve, but a degree in accounting is well worth the time spent.
Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
Albrecht, W. S., Stice, J. D., Stice, E. K., & Skousen, k. F. (2002). Accounting Concepts and Applications. Cincinnati: South-Western.
Marshall, D. H., McManus, W. W, & Viele, D. (2002). Accounting: What the Numbers Mean. 5th ed. San Francisco: Irwin/McGraw-Hill.
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
What does the accountant of the future need to be successful? A sturdy education that while is based on traditional accounting practices, also prepares future accountants for the plethora of changes happening in the accounting universe. Frequently, most of the institutions responsible for educating professionals fail to evolve as rapidly as the professional practice itself (Bedford et al. 4). In every way, accounting is expanding and in order for the future to have competent accountants, accounting education must expand as well. Major changes occurring in the world of accounting include the expansion of services and products, changes in competition, an increase in specialization, and an increase in and an advancement of technology. It is up to academic institutions to find proactive ways in which to prepare students for such changes. Accounting education of the future will require more breadth to cover the inevitable expansion of services and products, increased knowledge of economics, marketing, management and information systems to increase competitive advantage, a balanced course load that provides a general accounting knowledge as well as increased knowledge of a specialization, and also a greater, proactive focus on the use of continuously advancing accounting technologies (Bedford et al. 8). Also in play is the chance of change in accounting standards, the move from US GAAP to IFRS. While there are no certainties surrounding the threat of such change, students in the U.S. should acquire at least a general, basic feel for the practices used in regards to IFRS. The future health of the accounting profession depends, to a great extent, on the health of our students (Gormon and Hargadon 4). Reorganization of curriculums would surely be difficult and assumedly time-consuming, but nevertheless, completely
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
Modern information system is now popular all over the world, it also change the accounting area. Instead of the old manual analysis, many companies making effort in developing a fitted accounting information system for themselves, as they realize the advantages that the new technology brings in - more efficient and accurate in processing, integrated data, detailed record etc. However, even though there are so many benefits, the functional system also brings challenges, making new requirements to the accountants and auditors. This paper will discuss the impact of technology to the accounting information system, as well as the necessary capability ethics that the accountants should learn in this 21th century.
Thousands of years ago this information was engraved in rocks, books and other ways, but it was very hard to keep record and access the accounts as the system becomes complex. Before, people had to look for financial records in rooms or places where they stored this information, it was time consuming and not efficient. (Bellis, 2013)