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The Birth of Accounting

The history of accounting science

The history of the emergence of the science of accounting dates back to before 1494 AD, when that period was called the pre-double-entry period, and the single-entry method was the basis for bookkeeping.

The science of accounting developed and passed through basic stages of development until after 1775 AD, when the science of accounting entered a golden stage of development. 

The Birth of Accounting
The Birth of Accounting

 

Define the science of accounting

It is a science that studies the measurement, interpretation and delivery of all financial activities by recording, tabulating and summarizing financial transactions and presenting them through financial statements that reflect specific time periods. 


In most cases, the time periods specified for the financial statements are with the passage of each quarter or quarter.

The origin and development of accounting

Since 2000 BC, it was documented in China that complex accounting systems existed at that time and included historical accounting, budgeting and the audit function.

In Babylon, there were many pieces of pottery that documented accounting transactions such as bookkeeping and so on.

The emergence of accounting operations was not limited to China and Babylon only, but also extended to Egypt, where there were control accounting records for the available stock.

In Greece, accounting has reached a great development, as it documented the existence of accounting processes that include tracking monitoring, receipts, expenses, the balance of the end of the period, and so on.

With regard to the Romans, there were also accounting books consisting of two groups, and the existence of a daily accounting record of receipts and expenditures was documented.

It seems that the historical documentation of the advanced accounting processes that were the basis for financial dealings in ancient times and civilizations indicate the importance of accounting science since ancient times.

The main stages of the development of accounting science

The stages of development of accounting science can be divided into three basic stages, and we will mention them to you briefly as follows:

Preparatory stage “before double entry”

This is the stage that preceded the year 1494 AD, and it seems that it was distinguished by the fact that it was the basis for the development of accounting and interest in this field later on.

Bookkeeping was one of the most prominent aspects of accounting in that long period of time. 


Archaeological finds documented the extent to which accounting developed in ancient civilizations and how payments and receipts were organized

Inventory management and more.

Silver Stage “Double Entry Stage”

It extends from 1494 until 1775 AD, when the science of accounting developed through the efforts of the Italian scientist Luca Pacioli, who explained in detail the double entry.

He had a book entitled An Overview of Arithmetic, Geometry and Ratios, and it seems that he had a major role in establishing the science of accounting.

Economic historians assert that at this stage many economic laws were issued, such as land and sea trade laws, among others.

The golden stage of the “industrial revolution”

This stage began in 1776 when the Industrial Revolution began, as it had a major role in the development of accounting science.

This came in parallel with the emergence of many owners of capital, while many dual-national companies appeared, and the need became very urgent to account for the activities of companies.

From the foregoing, we find that the history of financial accounting has developed at an accelerating pace that took place nearly three centuries ago until today.

On the other hand, the serious attempts that took place throughout ancient history to develop accounting in general cannot be ignored.

Who is the founder of accounting science?

Whoever wonders about the personality that has a role in establishing the modern science of accounting that we know, the answer is Luca Pacioli, an Italian mathematician who has more knowledge in the origins of accounting science and introduced the double-entry system. 


Luca was a friend of Leonardo da Vinci, who lived together in Milan until the French invasion, while he spent the last years of his life in Florence and Venice

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