History of Accounting

Way back in 1494, Luca Pacioli, first described the system of double-entry bookkeeping used by Venetian merchants, although businesses and governments had been recording business information long before the Venetians.

Luca Pacioli described the system of debits and credits in journals and ledgers that still serve as the basis for Accounting today.

The advent of the industrial revolution brought about the need for more advanced accounting systems. Josiah Wedgwood, founder of the famous pottery firm Wedgewood) uncovered his head clerk had been embezzling from the company. Upon hiring a new clerk he implemented weekly account reviews to keep a closer eye on his finances. These reviews allowed him to calculate detailed costs for materials and labour, leading to the discovery of overhead costs and economies of scale.

The 19thand 20th Century saw continued growth of industry and business and the establishment of Accounting Institutes and Associations.

For the 21st Century and Beyond, our Accounting System, Cash Momentum aims to reduce the probability of business failure and improve businesses monthly cash surplus – ongoing .

(n.d) Reference  University of South Australia Library

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