![]() Stone age - Marking ticks on cave walls and mountains, and in the jungle to record goods collected and loaned.This period lasted until 1494, with the publication of the first book to describe double-entry accounting, a system using debit and credit entries.Īccounting practices that took place during the overall historic periods within this time frame include the following: Although historians haven’t uncovered a record of accounting practices during this time, they point to the first exchange of goods or services as the likely start of some form of record keeping. The first stage of accounting dates to the primitive days of civilization. The first stage began in primitive times and ended in the 15th century, and the most recent stage began in 1951 and has lasted to the present. The history of accounting incorporates four stages with distinct developments and processes. This wide range of uses for accounting includes, according to TheStreet: noting herd and crop growth, recording “good deeds,” tracking monetary transactions, measuring corporate performance, ensuring regulatory compliance, and investigating financial wrongdoing.īack To Top Four Stages of Accounting History Throughout history, the practice of accounting has played many roles in tracking transactions and monitoring performance. Around this time, historians believe, Egyptians were also using accounting to monitor their pharaoh’s possessions and uncover fraud. Archaeologists discovered these artifacts in Egypt and the area that once was Mesopotamia. While the practice may have begun centuries earlier, accounting’s first official records are tax information on clay tablets from around 3300 B.C. In business, the term “accounting” refers to the tracking of income and expenses. History of AccountingĪccounting is the process of tracking financial information, providing a system for recording, verifying, analyzing, and reporting on transactions. Understanding the history of accounting is key to understanding many facets of society’s shifts over time. ![]() The changes to accounting since its first days have occurred alongside some of the biggest shifts in society, with the industry influencing responses to technological shifts, financial crises, and ethics questions. The Business Research Company reports that the market size of the global accounting services industry was nearly $588 billion in 2021 and projects that it will increase to $1.7 trillion by 2031. By comparison, accounting today involves various electronic processes and is responsible for billions of dollars in sales. Accounting: From Clay Tablets to ComputersĪccounting has come a long way from its infancy, both in its practices and in the ways that it’s helped shape society.Īccounting’s earliest days may have come 12,000 years ago, when people likely traded resources while primarily surviving by hunting animals and gathering fruit.
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