Accounting records and bookkeeping methods have been used from early history to the present. Records discovered in Babylonia (modern-day Iraq) date back to 3600 B.C.; the Egyptians, Greeks, and Romans also kept accounts.
Modern accounting began with the technique of double-entry bookkeeping, which was codified in the 15th and 16th centuries by Luca Pacioli, an Italian mathematician. After the Industrial Revolution, business grew more complex. As government and industrial institutions developed in the 19th and 20th centuries, accurate records and information were needed to assist in making decisions on economic and management policies.
The accounting profession in the United States dates back only to 1880, when English and Scottish investors began buying stock in American companies. To keep an eye on their investments, they sent accountants to the United States who realized the great potential that existed in the accounting field. They often stayed on to establish their own businesses.
Federal legislation, such as the income tax in 1913 and the excess profits tax in 1917, helped cause an accounting boom that has made the profession instrumental to all business.
Accountants have long been considered "bean counters," and their work has been written off by outsiders as routine and boring. However, their image, once associated with death, taxes, and bad news, is making a turnaround. Accountants now do much more than prepare financial statements and record business transactions. Technology now counts the "beans," allowing accountants more time to prepare detailed analysis and interpretation of data. Their work has expanded to encompass challenging and creative tasks such as computing costs and efficiency gains of new technologies, participating in strategies for mergers and acquisitions, supervising quality management, and designing and using information systems to track financial performance.
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