Everyone this day in age has some knowledge of accounting. Like all human practices, accounting evolved over the course of time. Here is a brief history of accounting. Where it came from and why it was used.
The beginning
The first documented accounting records were found in the ruins of Mesopotamia. These ancient people used accounting techniques to record crop and herd growth to determine a surplus or shortage.
Evolution
Moving forward thousands of years, the Roman Empire evolved the practice of accounting to meet larger populations. Emperor Augustus had records of spending on citizens, land grants, money to military veterans, religious offerings, and spending on theatrical events. He used this data to plan and make decisions.
Double Entry Accounting
In the year 1494, a man named Luca Pacioli came out with a text book that framed the double-entry accounting standards we use today. He called it the “Details of Calculation & Recording”. This was the first known source to have plus and minus symbols along side debits and credits.
Today there are standards, audits & regulations in accounting. Every business and government use at minimum basic accounting principles. It’s an important element of business and over thousands of years has evolved into what we know as modern accounting today.