For a Business to operate successfully the accounting is an important task. There is a saying “All Accountants are not managers, but all departmental managers have to pay a role of accountants, be it technical department managers of non-technical departmental managers”. All companies need to have an accounting department to monitor outflows and inflows.
Accounting, also called as accountancy, is the measurement, record keeping, processing and communication of the entity’s financial data. Accounting is termed as the “language of business”, which signifies the financial and economic performance of an organization. There are several different field and parts of accounting of which few are financial accounting, management accounting, auditing, and tax accounting. Accounting theory has a long and withstanding history. The term “Accounting” was first used in 1800s in Great Britain, which was the derivative of words “Accompting” and “Accountantship”. However, long before that accounting was in practice. There is historical proof available to support that. Double entry system was found in about thirteenth century in Italy. History of Accounting takes us to 2000 B.C., Where book keeping was started. Book keeping was in practice during Barter system of trade. They used to follow the individual ledgers to keep accounts.