What are the Origins of Accounting?

What are the Origins of Accounting?

Image Description
General
Image Description
Created By Admin Last Updated Tue, 08-Dec-2020

On earth humans are the only creature who don’t just change the way of living but also invent many things for their survival in this series of invention Accounting is also an immense evolution in the filed of business it would not be wrong if ill say that accounting is the language of business, by extension from our surroundings that our rains then interpret; accountants translate the complexities of finance into information that the public can understand.  

Accounting is a language that dates back thousands of years and one that has been used in many parts of the world. The earliest evidence of this language of accounting comes from Mesopotamian civilizations. The Mesopotamians kept the earliest records of goods traded and received, and these activities are related to the early record-keeping of the ancient Egyptians and Babylonians. At that time The Mesopotamians used primitive accounting methods for keeping records that detailed transactions involving animals, livestock, and crops. In India, philosopher and economist Chanakya wrote "Arthashasthra" during the Mauryan Empire around the second century B.C. The book contained advice and details on how to maintain record books for accounts.

Bookkeepers most likely emerged while society was still using the barter system (an act of trading goods or services between two or more parties or peoples without the use of money (or any monetary medium, such as a credit card). In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.  to trade (pre-2000 B.C.) rather than a cash and commerce economy. Ledgers from these times read like narratives with dates and descriptions of trades made or terms for services rendered.

With time things changed and new evolutions happens and in the year 1494 Paciloli who is known the father of Accounting and bookkeeping wrote a book on the double-entry system of book-keeping named Suma de Arithmetica, Geometria, Proprtioni et Proportionalita ("The Collected Knowledge of Arithmetic, Geometry, Proportion, and Proportionality"), which included a 27-page treatise on bookkeeping.

Nowadays accounting is a profession and the biggest profession in this field is Chartered Accountant, there are accounting standards, auditing regulations, and ethical standards for accountants to follow.

Accounting is not used only by the business many time a normal individual also uses basics of accounting principles during their life. So Accounting is the major element of business and over thousands of years has evolved into what we know as in modern accounting of this era.