THE HISTORY OF ACCOUNTING: HOW TO MAKE HISTORY… OR BE HISTORY!

Understanding Your Value to Clients
March 30, 2017
The Impact Accountants Can Make
April 11, 2017

Accounting dates back thousands of years, to the time of ancient civilizations. Earliest accounts (no apologies for the early pun) say basic forms were used in Mesopotamia, Egypt, Babylon and the Roman Empire.

Most accountants would know Luca Pacioli, considered to be the ‘Father of Accounting and Bookkeeping’. He was credited with first describing the system of debits and credits in journals and ledgers still used today. Well, technically, it was actually Benedetto Cotrugli who came up the system first. But, tomato and tomahto, right?

Leaping centuries into the industrial revolution is when the modern profession began. An urgent need for more advanced cost accounting systems came with the rise of corporations. Accountants gained more prominent public status and thus transformed accounting into a profession.

As the business world grew, there was an increased demand for Accountants with the capacity to handle increasingly complex high-speed global transactions. Accountants now became integral components of the business and financial systems. This gave rise to the creation of professional bodies that would set the standards moving forward until the present day.

What does this mean for Accountants: NOW?

It’s apparent that Accountants are now game changers and can strongly influence the world at large. Here’s how this paradigm shift has transformed Accountants’ lives and the lives of those touched by their brilliance:

  • The profession became a highly viable way to make a living, so the Accountant collective grew exponentially. With the growth in numbers, came the need to differentiate from the competition. Accountants realized they needed specializations to focus on more specific aspects of businesses. Establishing their niche allowed them to target clear-cut markets.
  • Accountants became the natural trusted advisors to not only large corporations but also small-to-medium-sized businesses. Having a greater influence on businesses, big and small, Accountants are now instrumental in shaping economies. This symbiotic relationship between Accountants and clients allowed them to grow their businesses together.

Fast forward to today’s internet age, Accounting businesses now face new challenges brought about by rapid disruptive changes in the industry. Global business and financial systems now deal with millions of transactions in a split second. Accountants are now forced to adapt or be left behind.

With technology being the catalyst of change in industries at large, Accounting best practices are now being redefined to suit the times. Accountants are not too keen to break their routines and current standards though. To compete in today’s rapidly changing world, Accountants must change outdated business principles and rethink their mindset.

The strength of an Accountant’s resolve is the answer to the question of whether an Accounting business can achieve true success. Taking the right first step is key. But what if someone can guide the Accountant towards that path? The question now becomes, “Is the Accountant steadfast in conviction and prepared to take that step?” One step is all it takes to change the future of Accounting businesses.

You’ve seen how Accounting businesses and the profession has progressed throughout the centuries. The ball is in your court. Would you rather be a footnote in the chronicles of history or be truly historic and help the world build great economies?

Take that first step towards leaving a lasting legacy. Do it at ‘The Perfect Firm’ 1-day Seminar.

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