Many major changes have used place in the accounting profession for the previous years. Since 1494 when Luca Pacioli became the first man to describe a system that involves debit, credits, ledgers, and journals, a lot of changes have made use of place due to technological, economic, and numerous other advancements.

History has it that Accounting started in times of Assyria, Babylon, Sumeria, and Mesopotamia. Its popularity grew really fast, and today, it’s everywhere in the world. Every business today should could do with accounting to record its financial transactions and supply detailed financial reports to the stakeholders in the form of financial statements.

One of the main areas which have undergone lots of evolution which is the simple record-keeping part of accounting. Computers and other technology gadgets have changed the nature of accounting, and this’s for that reason that accounting has become a powerful and quick-paced profession. One of the most important, and essentially the most marked step along this evolution right now computer-based application packages started being used. It brought lots of changes by doing so produced it much better to get financial reports similar to income management reports, debtors, and creditors reports among others.

Prior to computerized accounting

Prior to a start of computerized accounting, everything was done the manual way, knowing that caused it to be nearly impossible to avoid mistakes. In a bid to correct those mistakes, working hours would be important for recalculation and presented very high risks for fraud. Also, the image that any accountant had was that associated with a nerd, and not somebody who can help an enterprise make crucial decisions. Finding out about for errors was also a tough and cumbersome process.

After computerized accounting

Using pencils, paper ledgers, and calculators was eliminated.

The margin of error was brought down to an appropriate level.

The method of locating mistakes, in addition to correcting them became easier.

The speed at which accounting jobs were done increased significantly.

The use of computers has changed the role that accountants play from just being number crunchers. In the intervening time, it’s the role and duty of accountants to recommend the best practices to the management of businesses, suggest approaches to reducing costs and boosting profitability.

This growth caused it to be vital for those within accounting professions in order to produce their interpersonal skills rather than just ensuring the numbers are correct.

Benefits presented by today’s computerized accounting environment

With computerized accounting, the volume of benefits which were achieved is enormous. Also, with technological advancements, other roles relevant to an accountant came up, and these role changes can be due to some major shifts that have happened.

The main target has shifted from record-keeping and generating reports besides the interpretation of monetary figures.

Today’s accountants are starting to be consultants.

Accounting professionals are actually starting working 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 come to be a vital quality that accountants require to have for his or her survival, and likewise remaining competitive in a classy and dynamic environment.