When was the birth of modern accounting?

While it may not seem like the most scintillating of subjects, modern accounting is something that plays an extremely important role in all of our lives.  As we have become increasingly corporate in our society, the balancing of books to show that investments and social projects are able to pay their way has become an important factor.  The beginnings of modern accounting start at the end of the 19th century and the start of the 20th.  certain events laid The foundations for the modern world of accounting that we have today. Bookkeepers Southend on sea or anywhere else for that matter, owe much to these pioneering times.

Image credit

The first major building block of modern accounting stems from the Industrial Revolution.  As the huge profits generated by the production of coal, steel, cotton and mass produced products began their had to be a way of illustrating how and where money was being spent and earned.  In this way huge corporations also grew to maintain control of these resources.

Image credit

Governments soon realised that there needed to be a level of control exerted upon these large operations so they demanded that businesses properly account their credits and debits based on the system developed by Luca Pacioli.  Proper accounting bodies, that were professional, started to spring up.  These bodies ensured that all of the  financial operations that large corporations engaged in were cost and accounted for.  Within this was the work of the bookkeepers tirelessly documenting everything.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.