History of Accounting

Accounting has been around since the very first fiscal system emerged. Once agricultural trade grew in popularity, it wasn’t long before the calculative system of accounting was put into action. The modern day practice of accounting is certainly far more sophisticated than the initial practice, but the foundation and motives have remained the same. The sole purpose of accounting is to accurately calculate and keep records of monetary exchanges.

Origin of Accounting

Accounting first saw its start in the time of Mesopotamia. The early economists developed the practice as a viable way to keep records of agricultural trade and to further develop the early fiscal system. Accounting has been given credit in religious books of faith such as the Islamic book of faith, the Qur’an, and in the New Testament of the Christian Holy Bible. After some time, the mathematical calculations of accounting made its way to practically every culture. The man that is recognized as the creator of basic accounting is Luca Pacioli, an Italian mathematician and writer. Pacioli created a system that was comprehensible enough for school aged boys to understand; this system was recorded in the textbook that he wrote titled Summa de Arithmetica, Geometria, Proportionate Proportionalita.

Pertinent Accounting Links

• History of Accounting- This webpage gives a thorough history of accounting.

• Accounting Terms- This glossary of accounting terms is helpful for those who want to become knowledgeable on the language that accountants speak.

• Famous Accountants- A list of the top ten most famous accountants.

• Online Accounting- Little by little, the world is going virtual, but did you ever think that accounting would, too?

• Become an Accountant? - Has it been your lifelong dream to become an accountant? If so, you would greatly benefit from reading this detailed article.

• Become a CPA? - Are you a New York based professional who wishes to become a Certified Public Accountant? If so, reading this article will inform you of the process.

• Accountants VS CPAs- Are you unsure of what differentiates an accountant from a Certified Public Accountant?

• Am I an Accountant or Bookkeeper? This is a common question amongst recent graduates. Learn the factors that differentiate the two from this in depth article.

• How much do Accountants Make? Ever wonder how much accountants earn on a yearly basis? If so, review this nationwide survey to view the average salaries of accountants

Common Accounting Terms

Like all trades, accountants speak their own language. There is certain terminology that is used by accountants that most everyday people will not understand. Such as: “Accounts Payable” which in simplest terms means is basically the bills incurred that must be paid to suppliers of a business. “Cash Based Accounting,” which in simplest terms translates to the practice of recording cash/check exchange between a customer/client and a business or a business and a supplier. “Trial Balance” is another little known term of accounting terminology, which simply means a catalog of general ledger accounts and their totals. “Liabilities” is a well known accounting term, but few people know the true meaning of the term. The term “Liabilities” simply means the amount of money that a business owes creditors, this includes payroll and accounts payable.