Data from transactions and financial relations between the various parties have been described in the form of financial records following the dawn of civilization, such as the notes of Babylonian clay slabs and Roman and Greek civilizations. the origins of accounting are in the Renaissance in Italy. In the 12th century, the bustle and breadth of the extensive commercial activities carried out by the Italian city states made it necessary to have an efficient financial records system that could accurately determine the results of large-volume transactions involving more than one party. Consequently, the double entry system of the bookkeeping system, the basis of our current accounting system, has been developed
Under the Renaissance, this accounting system is known throughout Europe; the usual practice in the 16th century was in England, Germany and the Netherlands. The first published description of the double entry system was published in 1494 in Venice. Luca Paciolo by Summa de Arithmetica Geometry and Proportionality.
In the 18th century, another factor appeared to have had a major impact on development, namely the Industrial Revolution
The nature and scale of manufacturing businesses showed tremendous growth, commercial activities became much more complex and extensive, planning and control methods were indispensable. These needs have led to the development of accounting cost accounting, with the specific function of providing any financial information required by the enterprise's management to design and control.
Computer Electronic Data Processing (EDP) was extremely important in the second half of the 20th century. It should be borne in mind, however, that EDP is purely a technology that dramatically increased the processing speed of large amounts of data. Although influencing the use of accounting information, it did not affect the theory. Computer has made accounting information more effective since it is now more complete, easier to understand and easier to access
There are now a number of accounting software packages for individuals, small and medium businesses and large companies. The type of corporate and internal operating systems determines the type and size of the used bookkeeping package. In order for the enterprise to make investment decisions, it must have a proper accounting structure. Accounting packages are just one tool for interpreting the "language" of the financial world – a tool for transmitting information. Financial information users expect accurate and comprehensive information that general or written languages can not provide, so accounting has been developed to meet this special need. By its very nature, accounting information is historical. Historical trends, however, serve as valuable guides for future forecasts.
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