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The Progress Of Bookkeeping - A Short Encapsulation

  • Many significant changes have used role in the accounting profession for the previous years. Since 1494 when Luca Pacioli was crowned first man to describe a system that consists of debit, credits, ledgers, and journals, a lot of changes have made use of place because of technological, economic, and diverse other advancements.

    History has guarantee that Accounting started in those periods of Assyria, Babylon, Sumeria, and Mesopotamia. Its popularity grew really fast, and today, it’s all around the world. Every business today should need to use accounting to record its financial transactions and provide detailed financial reports to the stakeholders by using financial statements.

    Securely at the top of all lists of areas that have undergone numerous evolution is the record-keeping a part of accounting. Computers and other technology gadgets have changed the character of accounting, it also’s because of this that accounting has become a powerful and fast-paced profession. One of many most vital, and probably the most marked step along this evolution at this moment computer-based application packages started being used. It brought lots of changes while in process generated it much better to get financial reports such as income management reports, debtors, and creditors reports among others.

    Prior to computerized accounting

    Until the start of computerized accounting, everything was done the manual way, and that caused it to be nearly impossible to refrain from mistakes. In a bid to correct those mistakes, work hours would be needed for recalculation and presented big risks for fraud. Also, the reputation that any accountant had was that associated with a nerd, and not someone who can help an enterprise make crucial decisions. Finding for errors was also a tough and cumbersome process.

    After computerized accounting

    Using pencils, paper ledgers, and calculators was eliminated.

    The margin of error was brought down to an appropriate level.

    The process of locating mistakes, as well as correcting them became easier.

    The speed at which accounting jobs were done increased significantly.

    The usage of computers has changed the role that accountants play from just being number crunchers. In the meanwhile, it’s the role and duty of accountants to recommend the best ways to the management of businesses, suggest approaches to reducing costs and boosting profitability.

    This process got there crucial for those within accounting professions to develop their sales skills rather than just making sure the numbers are correct.

    Benefits offered by today’s computerized accounting environment

    With computerized accounting, how many benefits which are achieved is enormous. Also, with technological advancements, other roles relevant to an accountant came up, as well as these role changes may be resulting from some major shifts that have happened.

    The focus has shifted from record-keeping and generating reports to the interpretation of economic figures.

    Today’s accountants are getting more consultants.

    Accounting professionals are actually working in drivers ed in positions of decision-making in key organizations.

    Conclusion

    With the short pace at which technology is advancing, the accounting profession can also be adapting fast, and the long run seems promising. Adaptability has become a very important quality that accountants would benefit from having for their survival, and also remaining competitive in a sophisticated and dynamic environment.