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The heritage of Accounting

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September is regarded as the most prominent month of spring, where the sun shines and birds sing, flowers blossom and trees go greener. To sum it all up it is a blissful month. We celebrate heritage the whole month in South Africa, the 24th being heritage day, where the identity of one is the point of discussion and a subject of interest. Heritage and culture go hand in hand, you cannot find one without the other.

I know for most people when the word heritage is uttered, they think tradition, culture, attire and foodies wallow into the traditional food category. It is not wrong to think that, as more often when we refer to heritage those form  part of it. Everything has a culture, a history and a base of where it comes from, that creates a trail which can be referred to as heritage. My belief is that heritage is vested in the identity of self or a product.Wherever it starts, with rules, failures, trials and errors(the inception).

 

History of Accounting

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I decided to walk a few steps back into what I know and do, and that is Accounting. It is a game of numbers, balancing of books, basically it is about finance to put it in layman’s terms. Yes it is, but let me do the honors of filling you in with more knowledge that you already have. Accounting is not only about numbers it is the reporting, the reconciliation, ability to judge and give financial decisions and to simplify the numbers for those who have interest in them. As per the IFRS rules, accounting is an essential aspect of any business as it provides the users (investors, creditors, public, employees) of the financial statements with the information needed to make financial decisions (whether to hold on to shares, to buy shares, to look for jobs or to write-off the debtor as a bad-debt), as the accounting records reflect the performance and financial position of the company.

The trail of accounting dates back 7000 years BC and it  was found in Mesopotamia, the records found included expenditures and goods received which still exist in the accounting language until to date. The point I am trying to make is that the language and founding aspects of accounting still exists today, so all that was started and labeled years ago still exists even today. Click here to read more on account and its heritage to expand your knowledge.

 

The new era

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The new era of accounting encompasses the new technologies which make it easier to record, account and report. Many might think that the new era has brought about changes which compromise the founding principles of accounting, but they are wrong as the systems comply with GAAP (General Accounting Practice) and the tax laws of the country of operation.

The digital systems like Pastel and SAP (Many others included), have not only stuck to the heritage and culture of accounting but they have also enhanced it and have added some creativity to the plain dull numbers by the use of color amongst other things. Moreover they have created efficiency in all the companies that make use of them.They have also lessened the human errors. In all honesty they have made life to be more easier and they provide convenience.

 

Conclusion:

Even though there are changes here and there in the accounting space, they have been for the better. They have not compromised the roots of the blossoming tree that is accounting. The heritage of accounting lives on and thanks to the ever changing technology, it is growing from strength to strength.

Happy heritage month.

 

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