The origin of accounting primarily consists of the establishment of human society and commerce. The idea of accounting is an old practice that has been dated since the Mesopotamia era. During this era, trade between tribes around Mesopotamia required records to be kept on stone and clay tablets. This took place at least 3600BC, where in those times, the ‘scribes’ who possessed a knowledge of writing also served as bookkeepers. Overall, accounting has made significant contributions over the past five and a half thousand years.
The first samples of what we called “writing” were believed to be actual records of transactions from more than 5,000 years ago. Many scholars considered that accounting systems were in use which had counterparts for our modern ledgers and receipts. Even the ancient Egyptians had a far more sophisticated system of accounting because of their advanced systems of distribution. Their system demanded quantities of different commodities to be stored in warehouses and disbursed (as required) over time. They often updated their goods and what had been consumed; One set of scribes would record the amounts that were brought into the warehouse while the other set of scribes would record any outward movements. A third set of scribes that functioned as auditors, would compare both sets of records and check with the quantities remaining in the warehouses. This system was made clear that the Pharaoh wasn’t being cheated in the transactions that were carried out. Rulers during that time also required accounting records to be collected for tax purposes.
Max Weber, a German economic thinker, believed that for capitalism to work, average people need to know how to do double-entry bookkeeping. This is n...
... middle of paper ...
...counting is revolutionized as many years go on. For professional accountants, the accounting profession has changed drastically. The entire bookkeeping and private accounting practices for people who do not practice professional accounting, has also changed because of the internet and the technological period. In general, the internet and computers allow more information to be inputted easily, which makes it faster and eases the job on professional accountants. In this generation, the internet and computers has helped in various ways. However, on the flip side, more privacy issues with technological advancements take place more now.
Sources
Soll, Jacob. "No Accounting Skills? No Moral Reckoning." The New York Times 27 Apr. 2014: 1-4. Web. 14 May 2014.
Over one million people are employed as accountants, and most can be found in private business and industry. “Nearly 40 percent of all accountants are certified, and about 10 percent are self-employed’(Caruna, 1). In addition to openings resulting from growth, the need to replace accountants who retire or transfer to other occupations will produce thousands of job opening annually in this large occupation. The Occupational Outlook Handbook states that the expansion of accountants is related to: “increasingly complex taxation, growth in both the size and the number of business corporations required to release financial reports to stockholders, a more general use of accounting in the management of business, and outsourcing of a...
Erwin Martin, is an accountant at the F&S Firm where he had worked for over twenty years. Although Mr.Martin is clearly a man outwar...
Wolk, H., Dodd, J., & Tearney, M. (2003). Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South-Western College Pub.
...urvey of ethical behavior in the accounting profession. Journal of Accounting Research, 9 (2), pp. 287-306.
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.
According to Professor Clark of APSU, “Accounting has changed more since 1980 than in the previous 4000 years” (Clark, 2016). The prime reason for this exponential growth in the last 35 years or so is the impact the internet has had on all of our lives. As access to the internet grows, more small businesses will be able to grow. The technology, access and speed of the internet will need to continue to match the exponential growth of the technology that uses it. So far, that seems to be the
Marshall, D. H., McManus, W. W, & Viele, D. (2002). Accounting: What the Numbers Mean. 5th ed. San Francisco: Irwin/McGraw-Hill.
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.
Change is inevitable. Yogi Berra once said “The future ain’t what it used to be.” It is clear that the future of the accounting profession ain’t what it used to be (Gormon and Hargadon 1). The changes occurring are happening fast, they are dynamic and they are completely and undeniably real. Since the world around the accountant is changing, the accountant has no option but to change as well. The field of accounting has always been one to know change and to know adjustment, but within the recent past and certainly within the next few decades, the changes that are occurring and will occur absolutely are the most dramatic and exponential yet. Obvious changes lie in the expanding scope of services performed by accountants, the increased use of
The history of accounting I feel is important in the learning, understanding, and developing of my foundation for my accounting career. In this report you will learn about the development of accounting. You will learn about the people who influenced accounting the most throughout the years. You will learn how accounting came about and how it was used in the ancient times. You will learn about the invention of the double-entry bookkeeping processes. You will learn how things were done before the birth of the double-entry bookkeeping process. You will learn about Luca Pacioli and the Summa. You will also learn about modern accounting and ACAUS.
Accounting is one of the fastest growing fields in the United States It expands each time a new store, a factory, a filling station, or a school goes up, whether in a large city or a small town. In today's society, the demand for good accountants for exceeds the supply. As our country has expanded, business and industry have become more and more complex, so control here is very important. And control depends on a great deal of the bookkeepers and accountants who can analyze figues and advise management on what should be done. They are using more scientific ways changing money, figuring change, and collecting sales taxes. Moreover, department stores and other companies now have plants and offices widely scattered throughout the country. A new set of bookkeepers and accountants, is needed at each branch. I know there are many managements supervisory, and junior or senior executive positions are bing filled by people who started as accountants because accountants have the knowledge of methods and finance and comprehension of the fundamentals of business, and acc...
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
The recording of accounting history allows for research of a high calibre and quality to be developed. If developments and research of the past were not recorded
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
The following essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning. Other aspects such as the current state of the system and the interactions with other systems and the future of the system will also be covered in this paper.