Answers To The Question: How Did Accounting Start?
ACCOUNTING – In this article, we will learn about the history of accounting, how it started, and how it evolved.
The earliest recorded development of this field could be traced back to ancient Mesopotamia. It’s closely related to the evolution of writing, counting money, and early auditing systems.
There are also evidences that revealed how accounting was a key part of the transition from concrete to abstract counting. Adding to this, 7,000 years ago, accounting methods were used to record the growth of crops and herds.
This developed further during medieval Europe. As the country was going towards a monetary economy in the 13th century.
Merchants at that time depended on bookkeeping to supervise several simultaneous transactions. Most of them were financed by bank loans.
According to an article from Thought Co, the invention of the double-entry accounting system was developed back in 1458. It was started by Benedetto Cotrugli and revolutionized accounting.
This type of system includes a bookkeeping method that involved both debit and /or credit entry in the transactions. Adding to this, Luca Bartolomes Pacioli invented a record-keeping system that used memorandums, journals, and ledgers.
Afterward, during the 1800s, the first professional organizations for accountants were created in Scotland. It started with the Edinburgh Society of Accountants and the Glasgow Institute of Accountants and Actuaries.
As time progressed, companies began to grow bigger and bigger. This resulted in a demand for reliable accountancy.
The profession quickly became an integral part of business and finance. In lieu of this, organizations for chartered accountants have been established all over the world.
Meanwhile, in the Philippines, accounting practices originated in the 1700s. However, it was only recognized by the government on March 17, 1923.
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