Accounting has come a long way since businesses started working and analysing their finances, especially as technology develops and evolves. However, like every good thing, it had to start somewhere.
Accounting began in ancient times and keeping track of your financial information was of great importance to the Roman Empire. Although it wasn’t the same as it is today, accounting back then was largely about bookkeeping and collecting debts, which to some extent, it still is today. It is considered that Luca Pacioli, an Italian mathematician, was the first real contributor to what we now call accounting. He created a double entry system and was labelled as the ‘father’ of the field.
Since then, keeping your finances in order has developed through legislations and legalities. Over a hundred years ago, people were simply doing their own accounts, meaning individuals could get creative with the outcome. Many financial details were made up to be more than a business had, meaning many companies weren’t stable enough to continue existing.
Some Accounting Advances
During the 20th century the first computers were built and some, well those who could afford it, turned to technology to computerise their financial accounts. The digital accounts became more common as time progressed and as computers became cheaper and more accessible to all businesses. Towards the end of the century, other companies started introducing accounting software that helped businesses keep track of their expenses and outgoings. It often had to be installed, but overall, sped up the handling of their accounts.
Cloud Accounting in the Modern Age
Accounting keeps changing to fit the needs of the businesses that need it. In this digital age, we need software that can continuously update us wherever we are. We are always on the move and with the invention of mobile phones and 4G data, we want to access our financial records from anywhere. People in business have busy lifestyles, so need accounting software they can use to see what’s happening early in the morning or maybe late at night. Technology has seemingly destroyed office hours and made individuals contactable from anywhere at any time – people need accounting software that reflects this, especially if someone’s business is international, or a CEO has to travel for the weekend.
Cloud accounting software has changed accounting for the better and comes with lots of advantages over the traditional methods. All data, accounts and expenses can be accessed 24/7 from anywhere, meaning a business can monitor their finances when it best suits them. The cloud-based technology keeps all files in one place, so when it comes to the end of tax year, the process is easy. The cloud accounting software is safe and secure and prevents businesses from misplacing important documents.
Accounting has come so far, from men with books and pens to the cloud accounting software companies now use today. It will be interesting to see the next step in finance and what the future holds, but for now, make sure your business is in safe hands with accounting software you can trust.