HISTORY OF ACCOUNTING

The history of accounting or accountancy

is thousands of years old and can be
traced to ancient civilizations. The early
development of accounting dates back to
ancient Mesopotamia, and is closely
related to developments in writing,
counting and money and early auditing
systems by the ancient Egyptians and
Babylonians.

IMPORTANCE OF ACCOUNTING
Accounting is a service activity. It is
important as it provides quantitative
information of financial nature to various
stakeholders which is intended to be used
in making economic decision. These
stakeholders include investors,
management, government, suppliers,
financiers, regulators etc. Business
accounting help in making a number of

short term and long term business

decisions which helps an enterprise to
grow as well as penetrate in market.
USES OF ACCOUNTING
Accounting provides companies with various
pieces of information regarding business
operations. It is often conducted by a company
& internal accounting department and reviewed
by a public accounting firm. Small businesses
often have significantly less financial
information recorded during the accounting
process. However, business owners often
review this financial information to determine
how well their business is operating. Accounting
information can also provide insight on growing
or expanding current business operations.