Happy International Accounting Day!Nov 03 2022
Happy International Accounting Day! On the 10th of November, businesses around the world celebrate the accountants who have gone above and beyond to keep their finances in order. Accounting is the backbone of every business, so taking the time to celebrate this occasion is an MMG-must. From Egypt to Edinburgh, join us as we acknowledge the great work of our ancestors.
Much like our own, the history of accounting is rooted in Scotland and spans centuries. So, how did it all begin? Traced back thousands of years to the cradle of civilisation in Mesopotamia, accounting is related to developments in writing, counting and money. The early Egyptians and Babylonians created auditing systems for checking movement in and out of storehouses, while the Romans collated detailed financial information to monitor changes in wealth and resources.
The 10th of November marks International Accounting Day. This date was not plucked out of thin air. Instead, it was consciously chosen to commemorate the Venetian mathematician Luca Bartolomeo de Pacioli. In fact, on the 10th of November in 1494, he published an epic tome that included an in-depth look at bookkeeping practices. Thanks to this publication, de Pacioli is now considered the “Father of Accounting.”
It wasn’t until the nineteenth century that modern accounting emerged. In 1853, the Institute of Chartered Accountants of Scotland (ICAS) established the world’s first professional body of Chartered Accountants, The Institute of Accountants in Edinburgh. By this time, the Industrial Revolution was in full swing, and London was the financial centre of the world. With the growth of large-scale manufacturing and logistics, demand surged for more technically trained accountants experienced in handling the complexity of global transactions.
While there’s no question that the Industrial Revolution transformed accounting into a profession, it’s important to celebrate the significance of The Digital Revolution that first emerged in the twentieth century. This newfound digital ecosystem has led to rapid advances in digital technologies that are transforming businesses, economies, and societies. Now, we’re able to manage tasks from virtually anywhere and at any time through our smart devices. But how does this affect accounting?
The phrase “cloud computing” appeared as early as 1996, but it wasn’t until the COVID-19 crisis that it rose to prominence. With the world moving towards remote working and operating with limited physical contact, cloud computing is now an essential component of collaboration, communication, and business functionality. When tools like QuickBooks modernise record-keeping, simplify finances and reduce time spent on admin, we’re all for the movement.
Whether your team is celebrating International Accounting Day with an old-fashioned dig into the past or looking forward to Making Tax Digital, don’t forget that our advisors are here to educate, strategise and inspire.