Accounting is a process that involves collecting, processing, and reporting financial information. Accounting is a service activity designed to accumulate, measure, and communicate all financial information about economic entities, businesses, and nonprofit organizations. Accounting as an economic science deals with the study, preparation, and interpretation of financial results at a specific point in time. Accounting as a discipline is a very broad field and today encompasses several branches. In general, the role of accounting is to help managers, investors, government tax authorities, and individuals or groups of decision-makers make more informed decisions based on accounting data. Auditing is a related but distinct discipline from accounting. Auditing has two subdisciplines: internal auditing and external auditing. With external audit We mean the analysis and verification of accounting data by individuals, groups, or institutions external to the company being audited. This type of audit is most often conducted by the government, specifically by tax and revenue agencies, as well as by potential investors in the company under audit.
With the internal audit We refer to the collection and analysis of a company's accounting data by the people or groups of people who are part of that company. During this audit, the goal is always to achieve an unbiased assessment of the audit data, because this data helps the company's management see where the company stands, whether compared to other companies, whether compared among different time periods of the company itself or against pre-established plans. The professional who handles accounting is called accountant. In our countries, as well as around the world, there are many professional accounting bodies.
Content
The history of accounting
Documented data on simple accounting date back to the earliest times of humankind during the civilization of Sumerianof Mesopotamia, when they needed to keep records of their agricultural produce. Simple accounting is mentioned in Qur'an in Surah Al-Baqarah Verse 282, simple accounting is also mentioned in Bible in Matthew 25:19. The twelfth-century writer Ibn Taymiyyah He mentioned accounting in his book. Hizbullah (verification, calculation), a system of accounting used by Muslims from the mid-seventh century.
The practice of accounting was influenced by Rome ancient and Persian Empire. A more detailed and complex example of the use of accounting was recorded during the rule of the Second Caliphate. Islam from Umar Ibn al-Khattab. Omar's accounting system was used, with some modifications, by Muslim leaders until the time of to the Ottoman Empire.
Luca Pacioli and modern accounting
The first book written on accounting “The Market and the Perfect Merchant” It was the economist's. Croatian Benedetto Cotrugli who is also known as Benedict Kotruljević from Dubrovnik. The book was written in the year 1458 but it was not published until the year 1573.
For this reason of not publishing Luca Pacioli (1445–1517), also known as Friar Luca dal Borgo, is considered the founder of accounting. In the book “Summa de arithmetica, geometrica, proportioni et proportionalita”, in (Venice in the year 1494), presents the synthesis of the mathematical knowledge of his time and formulates the methods of keeping accounting records.
The history of accounting methods
- Italian Method
- German Method
- American Method
Types of accounting
- Financial accounting
- Cost accounting
- Project accounting
- Preventive accounting
- Managerial accounting
Accounting standards
- International Accounting Standards (International Accounting Standards/International Financial Reporting Standards)
- German HGB accounting standards
- Accounting standards in Albania
Types of accounting
- audit
- cost accounting
- taxation
- public accounting
- private accounting
- internal accounting
- External accounting
Source: Wikipedia.