Many significant changes have taken role in the accounting profession for the past years. Since 1494 when Luca Pacioli became the first man to describe a system that is comprised of debit, credits, ledgers, and journals, a lot of changes have taken place because of technological, economic, and diverse other advancements.

History has it thatAccounting startedin those times of Assyria, Babylon, Sumeria, and Mesopotamia. Its popularity grew really fast, and today, its all over the world. Every business today should could do with accounting to record its financial transactions and provide detailed financial reports to the stakeholders by using financial statements.

Securely at the top of all lists of areas that have undergone plenty of evolution is the record-keeping part of accounting. Computers together with other technology gadgets have changed the character of accounting, it alsos for that reason that accounting has grown to be a fantastic and fast-paced profession. One of many most vital, and essentially the most marked step along this evolution right now computer-based application packages started being used. It brought a lot of changes while in process generated it much better to get financial reports similar tocash flow managementreports, debtors, and creditors reports among others.

Previous to computerized accounting

Just before the start of computerized accounting, everything was done the manual way, and that got there nearly impossible to stay clear of mistakes. In a bid to correct those mistakes, work hours could be required for recalculation and presented very high risks for fraud. Also, the reputation that an accountant had was that regarding a nerd, and not somebody who might help an enterprise make crucial decisions. Finding for errors was also a tough and cumbersome process.

After computerized accounting

The use of pencils, paper ledgers, and calculators was eliminated.

The margin of error was brought down to a suitable level.

The method of locating mistakes, as well as correcting them became easier.

The speed of which accounting jobs were done increased significantly.

Using computers has changed the role that accountants play from just being number crunchers. In the intervening time, its the role and duty of accountants to recommend the proven ways to the company management of businesses, suggest methods for reducing costs and boosting profitability.

This growth caused it to be needed for those in accounting professions in order to produce their people skills as opposed to just making sure the numbers are correct.

Benefits presented by todays computerized accounting environment

With computerized accounting, the total number of benefits that are achieved is enormous. Also, with technological advancements, other roles associated with an accountant came up, and these role changes could be on account of some major shifts which have happened.

The focus has shifted from record-keeping and generating reports to the interpretation of monetary figures.

Todays accountants are getting more consultants.

Accounting professionals are now working in drivers ed in positions of decision-making in key organizations.

Conclusion

With the short pace for when technology is advancing, the accounting profession can be adapting fast, and the future seems promising. Adaptability has turned out to be a vital quality that accountants would benefit from having for his or her survival, while also remaining competitive in a classy and dynamic environment.