subject: The History Of Accountancy [print this page] Accountancy has always been an extremely important profession. It has been in practice for over 7,000 years. Accountants had a fundamental role within the development of many cities and empires. Without accountancy it is certain the western world could not have developed in the way it has. For example, the Industrial Revolution would have seen the bankruptcy of many inventors and entrepreneurs without the support of educated accounting professionals.
The history of accountancy has very few names attached to it. There are in fact no names of accountancy innovation available before the Italian Renaissance. The discovering of new evidence linked to the history of accountancy is being unearthed all the time by archaeologists and historians however. This often shows the importance of accounting in ancient times.
The earliest records of accountancy were discovered in the form of accounting tokens. These were found in the ancient ruins of Sumeria, Assyria and Babylon. They are thought to have been used as tokens to identify personal property and to record any surplus. This early token system was the first recorded system of book-keeping known to man.
In the Mesopotamian culture, between 3700-2700 BC, they were recording the transactions of temples using clay tablets and engraved numeric symbols. Centuries later, the Roman people were also using tablets to make accounting records. The Roman Empire also used papyrus to keep detailed accounts of transactions. Particularly the Roman army would make detailed notes on the transactions of both cash and commodities.
In the Christian Bible there is also mention of accountancy, through 'Parable of the Talents'. Over 1,000 years later in the Middle Ages, travelling merchants would use bartering transactions as opposed to monetary payments. However in the 13th century medieval Europe started using a monetary system and accounts would become more important. Around this time double-entry book-keeping was introduced. This breakthrough technique was described in detail in 1494 by 'the Father of Accounting' Luca Pacioli. Double-entry book-keeping is still an important accounting idea today.
