The History and Role of Accounting in Business Essay

The History and Role of Accounting in Business Essay

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Accounting can be defined in a number of ways, but I chose the book definition, which is; Accounting is an information system that provides reports to stakeholders about the economic activities and condition of business. The person in charge of accounting is called the accountant. The accountant is typically required to follow a set of rules and regulations. These rules and regulations are called the General Accepted Accounting Principles. Throughout these next few paragraphs, I will be giving you the history and evolution of accounting, and I will be explaining who the stakeholders are and what type of information they require, and I will be explaining the role of accounting in business. There will be many examples and type of business decisions throughout this whole paper.
The history of accounting dates all the way back to the fourteenth century. In 1494, Luca Pacioli, first published and printed his accounting book in Venice, Italy. Pacioli’s book included a 27-page step by step guide on bookkeeping. In his book Pacioli, introduced symbols for plus and minus for the first time in a printed book. His accounting book contained the first known published work of double-entry, and it was said that this laid the foundation for double-entry bookkeeping in the world today. Double-entry was defined as any accounting action that required a debit and credit transaction for each transaction. The very first known accounting book to be discovered in the English literature was published and printed in London, England by John Gouge in 1543.
Accounting can be broke down into four categories; Financial, management, open-book, and tax accounting. Financial accounting can be defined as a major branch of accounting involving the collection, re...

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...n’t be following the rules of bookkeeping which are also known as the (General Accepted Accounting Principles.) That’s why the accounting equation and accounting are so important to everyday life and business. In the future, I see the role of accounting being the same as it is today. I see it being the same because the companies might change, but they will always need accounting in one way or another. No matter what company it is, a company will always like to know what it owns, and a company would always like to know who they owe, Without this how would a company be able to run efficiently and maximize profit. Although all companies don’t aim to maximize profits, majority of the companies in today’s world do. Unlike other jobs, I believe that accountants will always have job, cause as long companies are up and running, they will need somebody to run there books.

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