Top Five Financial Accounting Facts For #AccountantsDay

Financial accounting may seem standard to some, but its importance remains undiminished for over half a millennium. Accounting processes are integral for business operations and in our daily lives. Losing sight of our finances would indeed be a painful venture i.e. imagine being unable to ascertain your business’s profitability or identify burgeoning expenses of the company.

This is a proud moment for all accountants who tirelessly work to make finances understandable. The 10th November, #InternationalAccountantsDay, commemorates the importance of accountants globally and celebrates the historical intervention. Here are some interesting facts about accounting:

The beginning of accounting

Accounting practices began as early as the 14th century when Luca Pacioli published the first double-entry bookkeeping manuscript. The Italian mathematician released his publication by the name ‘Summa de Arithmetica, Geometria, Proportioni et Proportionalita’ which covered the fundamentals of accounting, such as managing assets, capital, liabilities, income, and expenses. He also introduced the idea of balancing statements for daily closing.

First accountants in the world

Although accounting can be said to have originated thousands of years ago, the first recorded accountants were from ancient Mesopotamia. Their activities differed from accounting practices in the modern era in so far as they would account for taxes paid on cattle and agricultural harvests. It was during this time that written receipts came into existence.

The beginning of chartered accountancy

Scotland was the first nation to establish chartered accountancy practices. The Royal Charter introduced the Institute of Chartered Accountants of Scotland (ICAS) in the year 1854, and this is still one of the leading institutes for advanced accountancy courses. ICAS also originated from the Edinburgh Society of Accountants, the Glasgow Institute of Accountants and Actuaries, and the Aberdeen Society of Accountants.

Roman obsession with accountancy

The Romans were said to be obsessed with accountancy, they had a defined and detailed practice where finances were recorded and balanced daily. The Romans were one of the first people to have announced public expenditure for Emperor Augustus.

Accountants are inventors

If accountants are perceived as dealing with just numbers and calculations, then one person memorably represents an exception to the rule. Walter Diemer, a US accountant who worked for the Fleer Corporation in the 1920s, invented arguably one of the most popular inventions in the world, certainly amongst children, namely bubble-gum!  According to reports, Walter experimented with unique homemade gum recipes in his spare time for his company, a sweet manufacturer.

Accountants help us with our financial management and their efforts make it simpler for us to understand our financial status. The 10th November, #InternationalAccountantsDay, is a day for us to celebrate the achievements of all accounting professionals throughout the world.

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