What do accountants do?
Most people in business are familiar with the profession of accounting. That is most people think they have a good idea about what accountants do or do not do. Frequently they are only 40% correct about roles and responsibilities of an accountant.
A short history of accounting
Did you know that accounting is one of the oldest professions in the world?
The origins of modern accounting can be traced back to the work of an Italian monk, Luca Pacioli, whose publication in A.D. 1494 described the double-entry system, which continues to be the fundamental structure for contemporary accounting systems in all types of businesses.
In its most simplistic form double-entry accounting is used, to identify both the resources controlled by the businesses and those parties who have claims to those assets.
Early business histories identify the bookkeeper a being a valuable staff member. As businesses became more complex, the need for more astute reviewing and interpretation of financial information was met with the development of a new profession. Consequently the profession of accounting was born.
Principles of accounting
Accounting is a body of principles and conventions as well as an established general process for capturing financial information relating to the resources held by a business and their use in meeting the businesses objectives. A business accounting system provides information that
- Helps managers make decisions about assembling resources, controlling, and organising financing and operating activities
- Aids other user's employees, investors, creditors, and other stakeholders in making investment, credit, and other decisions.øNow that you know what accountants do can you afford to be without one?
