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Accounting: Before and Now

by admin on April 9, 2015 Comments Off

Business owners are able to manage their company through accounting. Through accounting, it makes it easier for a business manager to gather financial information related to economic entities. As commonly known, accounting is also considered as the language of business. Business owners use accounting to monitor, record, analyze, and do a report on the company’s activities. Through business transactions, companies are able to gather and generate several pieces of financial information, and assemble this collected information into general ledgers and journals. In the past, accounting was a manual process that uses paper made books and documents for financial information

History

Accounting is centuries old. It can even be traced to ancient civilizations. An Italian friar, Luca Pacioli, was the father of accounting. This legendary accountant came in San Sepulcro. Pacioli was also respected and was given credit for developing the double entry bookkeeping system back in 1494. He also introduced the use of debits and credits to properly manage a company. With such process, financial information were easily gathered. His system subjected the accountants to use general books and ledgers where data records are being kept related to several business transactions. Pacioli’s accounting system is still being use today. It created a great contribution to the future of accounting. Even modern Industries with a computer system generated accounting still use the Pacioli’s process.

Facts

There are many general ledgers and books being used especially for Manual Accounting. It is a basic process for gathering financial information. With these tools, one can see the miscellaneous transactions and the balance of all the other subsidiary ledgers and journals through the general ledgers. Manual accounting got more detailed financial information. It is the accountant’s responsibility to conserve and put all the records into physical books. Computerized accounting which has a system generated process through the use of computers, spreadsheets, and special programs are technically designed to electronically gather, record, and report financial information. In fact, accounting services for small business Singapore uses the said system. Accounting also supports outsourcing, as it arrange services from one company to another company. Today, accounting services Singapore uses system generated tools which contributes easy review to daily financial reports.

Features

Computerized accounting may also require associates to manually key in or input the financial information directly to the program. It is the responsibility of the accounting program to ensure that the journal entries are balance before it is being posted and publish to the general ledger. The one who usually generates the financial reports are business owners and their preset parameters. There is a default feature for financial reports and statements to make sure that only valid and accurate data are included before the financial reports are fully completed.

Significance

An accountant requires copious amounts of time checking on the status, numbers, and any other accounting information. Bookkeeping as well are being process manually. Significant error usually appears, if you are not able to correctly transpose the numbers or data to the correct column. Computerized accounting makes the accountant’s workload lighter by creating its easy review processes.

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