History of Accounting – #4

https://www.businessaccountingbasics.co.uk/accounting-history.html

All the way back in 1494, Italian mathematician Luca Pacioli wrote a book called Summa de Arithmetica, Geometria, Proportioni et proportionalita. It was in this book where the first traces of the idea of accounting were found. Pacioli’s ideas still stand today as the base principles of accounting. Fast-forwarding to the 1930’s and 1940’s, there were many purposeful accounting errors in order to make a business more appealing to investors. This is where the Committee on Accounting Procedures (CAP) set a list of guidelines for accounting called the Generally Accepting Accounting Principles (GAAP). From there, in 1953 the first computerized system of accounting was established. That paved the way for many modern-day offices consisting of computers for all sorts of work, not just accounting. Today, cloud accounting is very popular. This allows users to have access to their work wherever and whenever, as well as share it to whomever they wish.

This source gives me a great sense of where accounting came from and how much it developed. This sight gives me a lot of background knowledge and it’s useful to me so I understand the history of accounting to appreciate it more today.

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