The origin of accounting

Accounting has been used since the beginning of humanity when men decided to trade with each other. We had to find a way to remember the transactions and the inventory of goods. Accounting is the language of business. In addition, it has helped the development of mathematics, because it is the origin of negative numbers and zero. Moreover, we can go back to Mesopotamia to discover traces of accounting inventories on clay surfaces, because the origin of accounting is as old as the history of writing.

Accounting has evolved a lot since the first theoretical writing in 1494. It is the monk Luca Pacioli who will write the mechanism of the double-entry recording. Nowadays, we use accounting every day. Whether it is for writing our budget, buying a house or a car, checking our bank account transactions or for the project of starting a business. In addition, we receive financial information from the media every day. In addition, knowledge of accounting allows us to better understand today's economic world.

accounting science

Accounting is a discipline of administrative sciences whose function is to provide financial information in figures to economic entities. Then, this activity is essential to understand the financial activities of an organization or the economy. In addition, to make better decisions, the accountant identifies economic facts of a monetary nature, analyzes them, organizes them using an information system and presents them in the form of financial statements or reports.

Accounting is used by several of the following economic entities:

  • Revenue agencies to ensure compliance with laws and payment of taxes
  • Trade unions for the negotiation of the working conditions of their members
  • Investors to make forecasts and evaluate company performance.
  • Bankers to assess the solvency of the company
  • Business leaders to make better decisions
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