Financial Information Regarding A Business Essays

1156 Words Jun 26th, 2015 5 Pages
The purpose of accounting is to identify, record and provide financial information concerning a business. An effective accounting system is one of the most crucial aspects of having a successful business. No matter what type of business it is or how large or small it may be, accounting will play an important role in its overall success. Even though accounting systems can be traced back for thousands of years and have developed in many different ways over time, todays businesses primarily use two types of accounting systems: financial and managerial. Both systems of accounting serve different purposes but they are equally as important and essential to the overall financial wellness and proper functioning of the business. The first records of accounting can be traced back thousands of years to about 4000 B.C. to the ancient temples of Mesopotamia. At this time it was thought that records were kept to keep track of the inventory and income of the temples. Over the years accounting practices changed and developed in ways that would serve the needs of the people, culture and society that were using them at that particular moment in history. In the 1400’s a more modern system was developed, one that is similar to the systems used in modern business today. In 1494 Luca Paciloi introduced double-entry bookkeeping and many other concepts that were related to commerce business. After Pacioli introduced double-entry bookkeeping, the first professional accounting position was…

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