- The first written evidence of record-keeping in the Albanian language is found in Jani Vreto's book “Radhueshkronjë,” published in Bucharest in 1889.
- Modern Albanian accounting was regulated by a special law as early as 1928, by a decree of King Zog I in 1929, and then went through the period of a centralized economy (1944–1991), with a single accounting plan approved by the Council of Ministers.
- The reform after 1991 had two objectives: the regulation of accounting in line with the conditions of the market economy, and the creation of two liberal professions, the Certified Accountant and the Authorized Accounting Expert (auditor).
- These two professions, today organized respectively by the Institute of Certified Accountants (ICMA) and the Institute of Authorized Accounting Experts (IEKA), continue to operate under Law No. 10091, dated March 5, 2009, while the National Accounting Council (NAC) continues to issue the National Accounting Standards.
Accounting provides the management of any economic unit with the necessary, timely, accurate, and documented information on its financial position, performance, and the factors that have influenced its achievements or failures. From this information, all of a business's financial management is carried out. Less well known is the fact that accounting in our territories has a much longer history than is commonly believed.
In our daily work, we often see professionals and business owners who are well versed in today's accounting rules, but know little about how we got here. This article, based on the original paper by Prof. Dr. Leandro Haxhi, traces this journey, from the earliest accounting writings in the Albanian language to today's legal and professional framework.
Read also: How to organize effective accounting work.
Accounting before the 20th century
“Radhueshkronja” by Jani Vreto, 1889
The patriot and Renaissance figure Jani Vreto published in 1889, at the “Dituri” printing press in Bucharest, the book “Radhueshkronë” on the need for keeping regular accounts. As the author himself wrote, the radhueshkronë is “the recording of income and expenses in notebooks or other books called ledgers,” useful for everyone but essential for the merchant, who, by keeping accurate and clear accounts, always knows where he stands and also earns the honor of being trusted. In the continuation of the book, the author also compiled a diary of the state and movement of the era's monetary funds.
The Ottoman era and the monarchy period
Accounting, even with the principle of double-entry bookkeeping, has been practiced in our lands since the Ottoman era. Today, in Albanian archives, balance sheets from the period of Ismail Qemali's government can still be found for domestic and foreign companies operating in the country. Later, during the monarchy, the law “On the Administration of State Property and General Accounting,” dated July 31, 1928, approved by decree of King Zog I on May 28, 1929, modernized accounting, administration, and the treasury system in Albania.
Centralized economy, 1944 to 1991
Unique accounting plan
During the period of the centralized economy, accounting was not regulated by a special law, but by a single accounting plan, approved by a decision of the Council of Ministers, which set the rules for the preparation of financial statements, the list of accounts and their functioning, with separate plans for each sector of the economy (industry, agriculture, trade, construction) and for budgetary institutions and banks. Accounting information served primarily for high-level state planning, not for decision-making by the enterprise managers themselves, and the school of thought followed was that of Eastern Europe, not the Western one.
The profession at this time
It wasn't yet a true accounting profession; specialists were mainly record-keepers of figures and compilers of financial statements, with serious responsibilities if economic targets were not met. Their training ranged from commercial high schools (such as that of Vlora, opened in 1924) to the Faculty of Economics in Tirana, which in 1959 graduated the first cohort of 30 “accounting specialists” with higher education.
Reform after 1991
The two objectives of the reform
The accounting reform launched in 1991 by the Ministry of Finance had two main objectives: first, to amend the regulatory provisions of accounting to meet the requirements of the market economy and European harmonization; and second, to organize the liberal accounting professions, Certified Accountant and Authorized Accounting Expert (auditor). The first “Law on Accounting” was enacted in January 1991 and was replaced, with international assistance, by the 1993 law, accompanied that same year by the General Accounting Plan.
Establishment of the National Accounting Council
The implementation of the first objective was entrusted to a group of professionals who, after the adoption of the Law “On Accounting,” were formalized as the first members of the National Accounting Council (NAC), chaired by Baki Berberi. The Council opted for continental-style standardization, following the French model, continuing the tradition of accounting standardization through laws and accounting plans dating back to 1947, and taking into account the close link between accounting and taxation in the Albanian system.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsThe development of the two accounting professions
From the 1992 law to the 2009 law
The 1992 Law “On Commercial Companies” laid the first foundations for the independent auditor profession, driven by investors’ and shareholders“ demand for the audit of financial statements. Toward the end of the 1990s, the profession of ”Certified Accountant“ also began to operate. At the end of 2000, the Professional Association of Certified Accountants was formed with 114 members initially; today it is organized as the Institute of Certified Accountants (IKA), with its membership having multiplied since then. In March 2009, Law No. 10091, dated March 5, was adopted.March 2009, ”On statutory audit, the organization of the profession of statutory auditors and certified accountants," which today regulates both professions, also granting them the right to provide independent consulting on financial and tax matters, company valuations, and business formation and liquidation procedures.
International membership
Both institutions, the Institute of Authorized Accounting Experts (IEKA) for auditors, and the Institute of Certified Accountants (ICM), have joined international organizations such as IFAC, International Federation of Accountants, and SEE PAD, the Partnership of Eastern European Countries for the Development of the Accounting Profession, where they regularly participate in experience exchanges and qualifying seminars.
National Accounting Standards
The 2004 Law and Standards
In 2003, the government drafted a new strategy for the field of accounting, materialized by the Law “On Accounting and Financial Statements” of April 2004 (No. 9228, dated April 29, 2004), amended in 2006. This law abandoned regulation by the General Accounting Plan and authorized regulation by National Accounting Standards (NAS), drafted in coherence with International Accounting and Financial Reporting Standards. At the end of 2006, the KKK published 14 NSS, effective from January 2008, and in 2009 NSS 15 was added, dedicated to micro-entities, reducing the cost of preparing accounting information for smaller businesses.
The KKK and standards today
The National Accounting Council continues to be the body that issues and updates the National Accounting Standards, while foreign companies, banks, financial institutions, and those listed on the stock exchange apply the International Accounting Standards directly, without modification.
Why does this story matter?
Accounting as an early signal
As shown by well-known international cases such as Enron, Parmalat, and WorldCom, accounting is often the first sign of an economic crisis. Proper implementation of national standards, harmonized with international ones, remains the primary way to ensure reliable, accurate, and high-quality financial information for the benefit of business leaders, investors, and the state itself.
How we handle this with our clients
This story reminds us every day that national accounting standards are not a formality but the result of a long-standing reform aimed at the reliability of financial information. Therefore, in our work with clients, we apply the applicable standards rigorously, regardless of the size of the business.
Frequently asked questions
Where was the first book on bookkeeping in Albanian published?
“Radhueshkronja” by Jani Vreto was published in Bucharest in 1889 at the “Dituri” printing press.
What changed with the 2004 law?
Law No. 9228/2004 abandoned the General Accounting Plan and authorized the regulation of accounting through National Accounting Standards, drafted by the National Accounting Council in alignment with international standards.
Which accounting professions are regulated in Albania today?
Certified Accountant, organized by the Institute of Certified Accountants (ICMA), and Authorized Accounting Expert, that is, the auditor, organized by the Institute of Authorized Accounting Experts (IAEA), both under Law No. 10091 of March 5, 2009.
The original article concluded with a tribute by the author, Prof. Dr. Leandro Haxhi paid tribute to the early teachers and contributors to the field, among them Professors Xhemil Cela, Lefter Kriqi, and Aristotel Pano, as well as specialists Pandeli Gjika, Laze Ajazi, Malo Frashëri, Lefter Cave, and Vangjel Karajani—a tribute we preserve with respect in this review.
