Evolution of Accounting

Accounting has been named as the language of business. Accounting is the system that measures business activities. It processes the activities in business relationships and in communicating results to senior management. Let's take a look through the promotion of accounting.

Accounting Ancient

As early as 8500 BC, accounting already existed. Archaeologists have found clay tokens as old as 8500 BC in Mesopotamia found that they were usually cones, spheres, discs and pellets. These tokens correspond to products such as sheep, clothing or bread. Were used in the West East books. After some time, tokens have been replaced by tablets of wet clay. During this period, experts have concluded that this being the principles of the art of writing. Examples of ancient civilizations keep records of account are China, Babylon, Greece and Egypt. How to Babylon in 3600 BC, payments of salaries were recorded in clay tablets. Furthermore, the rulers of these civilizations to keep track of the cost of labor and materials used in building structures with accounting. A good example is the case of the Egyptian pharaohs to build their majestic pyramids.

Middle Ages

During the thirteenth to the fifteenth century, the flourishing trade in places like Florence, Venice and Genoa, then, there was progress to take into account the methods, thanks to the merchants and bankers of that time. during 1211 AD, a system of accounting has been given by a Florentine banker. However, the system was primitive as the concept of equality for the items was missing. Record double-entry the first time during the 1340 AD in Genoa. In 1494, the first systematic record keeping has been formulated by Fra Luca Pacioli, a Franciscan monaco and one of the most famous mathematicians to this day. Pacioli is considered the father of accounting.

Industrial Revolution

The industrial revolution, which was characterized by major changes in work and business transactions paved the specialized field of accounting called cost accounting in order to satisfy the need for analysis of different costs. Also, since there was a development of the corporate form of organization, there was the need for a separate report and to ensure independent representations of the financial management are reliable. Information Age

At present, there have been huge advances in accounting to meet the needs induced by information technology. These obligations, which required manual methods, tedious and time consuming it can be done using the computers that make the job faster, more reliable, accurate and precise. It is true, transactions have changed and evolved. Companies can now be exchanged virtually making it faster and without problems. The business transactions to operate without even facing each other has become possible all because of technology. With the advancement of business, accounting has also advanced to meet the needs of businesses in this day. There was a large amount of applications and elements of accounting able to satisfy the different needs of business. As is often pointed out, as a smart businessman, you have to breathe in information technology to keep pace with the trend and remain competitive.