Acc 205 Accounting Final

Modern Accounting Systems                             1

Modern Accounting Systems Making a Difference in Modern Organizations
              Jacqueline Agnew
      ACC 205 Principals of Accounting I
                Brent Tabor
March 25, 2012

Modern Accounting Systems 2

The process of accounting has transformed over time.   From early civilization to the 21st century, improvements to the accounting system have become a major factor in business today.
The very early stages of accounting started with clay tokens and abacas.   Double entry bookkeeping came to exist during the commercial revolution.   In Italy, a Franciscan Monk named Luca Pacioli wrote a math book that suggested to merchants the need for three things; sufficient cash or credit, an accounting system, and a good bookkeeper. (, 2012).   It was in the late 18th century, that cost accounting became commonly known by a potter named Josiah Wedgwood.   After the depression, he discovered that his paperwork was being overlooked by his clerk and that the clerk was stealing his money.   Josiah then took the time to go over his books and found inaccuracies and the importance of calculating his overhead into his pottery costs.
In 1845 the occupation of accounting became known in London where the process of accounting started as columned ledger books requiring hours to manually record information and requiring more than one clerk to record the data.   Data was being recorded in ink instead of pencil causing accidental ink blots which made it difficult for the business owners to understand. In 1885 an inventor named William Burroughs invented the first adding machine.   Soon after his invention calculators were created and this led to fewer mistakes, greater accountability, and an increase in the speed of the accountants. (, 2012)

Modern Accounting Systems 3

In 1930 a professor from MIT named...