Accounting, as we see it in our time, has become the main tool for regulating economic activity within the framework of both one organization and large entities. This is the constant maintenance of all operations and accounting of all information related to the organization. Accounting data is used to evaluate the effect of the enterprise and its future prospects. Banks and other numerous credit organizations use accounting data to decide on the issuance of a loan or loan. In addition, regulatory authorities also verify this data. From all this it is clear that the role of accounting is huge. But to create such a system had to spend a lot of time. Therefore, let’s talk about the history of accounting.
Its roots go far back centuries. The first books, reminiscent of accounting, date back to 3500 century BC. The records were kept on clay boards, and scribes kept them in Babylonia.
With the advent of paper and the transition to a more civilized relationship, accounting has become easier. However, the modern system was still far away. In different estates, the accounting was not the same. Many owners from time to time checked the documentation and records of housekeeping. This was the first makings of the appearance of auditors. But it all came down only to the supervision of the safety of property and regular inspection. No one tried to measure the profit and find out how effective the business was.
The history of accounting has received a new impetus when double entry was introduced . This happened in 1340. This method was used by the treasurers of Genoa. The history of accounting suggests that this method was described by Luca Pacioli. It is he who is considered the ancestor of accounting. The implementation phase of double recording is called the beginning of a modern system.
Everything was elementary. Economic resources were equal to the sum of debts and obligations and own funds.
The basis of such accounting was a pattern in which changes in one part of the account lead to changes in the other part. So there is a balance. Moreover, changes can be in one part. But with the opposite meaning and in the same amount. Accounting received another function - determining the effectiveness of the economic activity of any entity.
The history of accounting is divided into two periods. The first is characterized by a lack of literature on the proper conduct of economic activity. The second period began with the release of Pacioli's book on double counting. It was she who became the first textbook on accounting.
Since the 17th century, many joint-stock companies began to finance long-term expeditions. This led to the fact that the reporting period began to end at the end of the year. In 1673, France began to demand a balance from each enterprise, which should be drawn up once every two years.
The banking sector was gradually developing . The balance sheet of the enterprise made it possible to evaluate its capabilities and solve the issue of lending. Production volumes grew, as did the enterprises themselves. The role of fixed assets in the balance sheet has become significant. The concept of depreciation appeared.
There was a need for costing. The history of accounting came to an end in 1959 when they created a commission that developed the basic principles of the accounting system. After this, major changes did not occur.
The history of the development of accounting in Russia has experienced several historical moments. It can be divided conditionally into three stages: the period of the Russian Empire, the Soviet period and the modern one.
But the accounting system continues to evolve today. Each country has its own characteristics, but recently there has been a tendency to develop world standards.