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The Advancement Of Bookkeeping - A Short Outline

  • Many major changes have obtained place in the accounting profession for the past years. Since 1494 when Luca Pacioli took over as the first man to describe a system that involves debit, credits, ledgers, and journals, numerous changes have taken place because of technological, economic, and various other advancements.

    History has be certain that Accounting started in the times of Assyria, Babylon, Sumeria, and Mesopotamia. Its popularity grew really fast, and today, it’s everywhere in the world. Every business today should require to use accounting to record its financial transactions and provide detailed financial reports beyond just the stakeholders comprising of financial statements.

    Securely at the top of all lists of areas that have undergone plenty of evolution which is the simple record-keeping a part of accounting. Computers as well as other technology gadgets have changed the character of accounting, and this’s for this reason that accounting has become a dynamic and fast-paced profession. One of the most important, and the most marked step along this evolution at this moment computer-based application packages started being used. It brought a lot of changes simultaneously and made it simpler to get financial reports similar to asset value management reports, debtors, and creditors reports among others.

    Prior to computerized accounting

    Until the start of computerized accounting, everything was preformed the manual way, knowing that managed to get it almost impossible to refrain from mistakes. In an offer to correct those mistakes, working hours can be necessary for recalculation and presented very high risks for fraud. Also, the image that an accountant had was that of a nerd, and not somebody who might help an enterprise make crucial decisions. Looking up for errors was also a tough and cumbersome process.

    After computerized accounting

    The use of pencils, paper ledgers, and calculators was eliminated.

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

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

    The speed for when accounting jobs were done increased significantly.

    Using computers has changed the role that accountants play from just being number crunchers. In the mean time, it’s the role and duty of accountants to recommend the best methods to the management of businesses, suggest methods for reducing costs and boosting profitability.

    This needs made it vital for those in accounting professions to formulate their sales skills rather than just being sure that the numbers are correct.

    Benefits used by today’s computerized accounting environment

    With computerized accounting, the number of benefits which were achieved is enormous. Also, with technological advancements, other roles relevant to an accountant came up, that role changes could be on account of some major shifts which have happened.

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

    Today’s accountants are getting more consultants.

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

    Conclusion

    With the short pace of which technology is advancing, the accounting profession can also be adapting fast, and the longer term seems promising. Adaptability has turned out to be a very important quality that accountants be needing to have for his or her survival, and likewise remaining competitive in a classy and dynamic environment.