History of Accounting

The history of accounting relates back to the 14th century when Luca Picioli describes the concepts of debt, credit and bookkeeping for the very first time. No doubt people from different civilizations were using different methods for recording their transactions however it was Luca Piclioli who makes the entries in journal and ledgers that becomes the base of the modern accounting system.

The span and the complexity of accounting were increased with the advent of industrial revolution of the 20th century. More complex concepts were added to accounting systems such as the concept of shareholders, bondholders and creditors of the company. With the rising status of the accountants and indulgence of accounting in every field of life make accounting a competent profession. The American Association of Public Accounting was formed in 18th century when thirty one accountants join together to make the association. This was followed by first CPA that was licensed in 1896. The Securities and Exchange Commission was founded in 1934 as a result of the great depression. The commission needed reports from all the publically held companies in order to become a certified company in the profession of accounting. The accounting standards for the companies were set by the American Institute of Certified Public Accountants.

In late 20th century the accounting profession became the most happening profession as the accounting firms not only help in solving accounting matters but assist companies in different matters as consultancy firms. Now at the present day the profession of accounting is blooming with each passing day and every new activities creates new work opportunities for the accountants.



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