History of Accounting and Technologies Influence
History of Accounting and Technologies Influence
Who is Accountable for Accounting?
To begin with consider this question. Who is to be held accountable for accounting? His name is Luca Pacioli, but most referred to him as the “Father of Accounting”. He is an Italian mathematician and Franciscan monk. Pacioli began by writing the first math book that consisted of a “Venetian method” of keeping accounts and it was published about two years after Columbus founded America. Today this method is better referred to as “double-entry bookkeeping.” “The book suggested that merchants needed three things: sufficient cash or credit, an accounting system, and a good bookkeeper.”* We still use the basis of his methods today in the accounting cycle however our way of modeling it has progressed through time. It wasn’t until the mid ninetieth century “as business regulations increased along with taxes, the need for professional number crunchers became predominate.”*
Technology
The first accounting firm opened in 1845 in London but this company being one of the first, lacked in technology. Technology has completely changed the way companies are run today. Companies are now able to keep a running tab on basic operations and how the company is performing on a day to day basis. Technological advances began with the invention of the first calculator invented by French scientist Blaise Pascal. After ironing out the kinks and mastering the art of using the adding machine the accounting process was faster and more accurate. A computer acts like a human however its error rate is significantly less. The computer is able to perform with more precision there for it speeds up the process. With less room for error there is less have to go back and correct mistakes. However what changed all was the invention of computers in 1942 manufactured by IBM and software. This computer allowed accountants to stray away from the pencil and paper technique to constructing electronic spreadsheets. It is just a matter of plugging in the correct numbers and waiting for the results.
Advantages and Disadvantages
Now with this fast moving industry of technology and software it brings with it disadvantages and advantages. One of the disadvantages to the invention of technology is fraud. Some of the software can be quite complex and calls for an individual who specializes in the program. Well if you’re the only one that knows how to navigate your way through, it is very simple to use this advantage to your benefit. So this aspect of technology and accounting software can lead to prospective problems.
Conclusion
So in conclusion accounting has progressed significantly through the years from the first accounting book written by Pacioli to the hundreds of thousands of accounting books that are in circulation today. The use of technology has made accounting a more marketable job. It is not just viewed as the quiet person in the cubical all day long anymore. With the use of computers and the internet, necessary accounting information has been made readily available to all levels of individuals and professionals. Although there are some down sides, the positive impact that technology has made on accounting as a whole compensates for the drawbacks.
*http://www.topaccountingdegrees.com/how-technology-has-changed-accounting
