Accounting Technology Through The Ages
Ever since numbers, figures, and money have all become part of society, accounting has become a prominent industry among many. It dominates commerce and regulates transactions. However, we didn’t just stumble upon the next accountancy practice software or other technological means without its humble beginnings in basic arithmetic and stone-based writings. To learn more about it, consider this article as your informed look into the history of accounting-based technology.
1. The start of inscription-based accounting (10,000 B.C. to 2000 B.C)
This era of inscription-based accounting came when there were cave marking or drawings, which were used as a reference to determine how many livestock and food were in possession. It was also the time of decimals, Hindu-Arabic numbers, and finger-based math. Later on, during this accounting period, more advanced societies developed their own innovative ways to calculate their assets.
For example, the Egyptians used papyrus as their own method for bookkeeping transactions. They also performed trade and bartered their goods to other communities. The abacus was also a popular tool during this time, which was utilized by the Sumerians to calculate more elaborate equations. Overall, think of this time as a precursor to paper-based accounting.
2. The rise of merchants doing accounting (2000 B.C. to 1900 A.D.)
Thanks to early trading by sea and land, the earlier civilizations needed a more established accounting system. It started in 600 B.C. through King Alyattes of Lydia (now modern-day Turkey), which introduced coin-based currency and single-entry bookkeeping. Later on, more nations adopted their own banknotes, leading to more people using coins to purchase necessities.
One significant development during this era was the rise of the Gutenberg printing press. It allowed different European scholars to produce their own written works on bookkeeping to mass-produce books that would detail how accounting would be done. As a result, early age accountants or individuals knew their way with numbers and computing for profits. One example of this is Luca Pacioli’s Summa de Arithmetica, Geometria, Proportioni et Proportionalita”, which was published in 1494.
3. The age of digital accounting and further technological advancements (1900 A.D. and beyond)
Finally, this is the time that things started to pick up for many professionals and businesses. The digital accounting age is the rise of technological and effective tabulation for records, money, deductibles, and more. For instance, General Electric was the first to release an automated payroll system, giving rise to other accountancy services for business, such as automatic billing and computer-based bookkeeping. This age was also the start of cloud computing, SaaS platforms, and other accountancy practice software to ensure every pound counts!
Accounting through the years has become more convenient in some aspects but also tedious to a degree. Whatever industry you are in, history depicts that you must have access to the latest form of innovations out there to protect assets, mitigate expenses, and foresee possible growth opportunities. So if you feel unprepared due to your more traditional bookkeeping, tax monitoring, cash flow forecasting, and other similar areas, refer to experts like us to ensure you are up to speed and ready for the future!
Are you in need of the best accountancy practice management software the UK has to provide? Get in touch with us at 1 to 1 Accountants. We give reliable financial control interventions for small businesses and freelancers to ensure they maintain their economic stability amidst challenges. Get in touch with us today about any of our services to have a timeless solution to your monetary checks and balances!