The story of mathematics and accounting closely resembles that of the proverbial hen and egg, when seeking to determine which of the two preceded the other. The history of accounting goes back long before there was any evidence of the existence of abstract mathematics, in ancient Mesopotamia over seven thousand years ago. Out of necessity, records of produce, excesses, and barter trade were kept, with the records becoming more pronounced as necessity demanded. Eventually, standard measures and the use of money as a measure of value would transform and expand accounting, beginning in the medieval Middle East and spreading to Europe. The trend of the expansion of accounting would continue to the modern times when accounting would become both a profession and a management position. The primary and most prominent driver for the growth of accounting through the ages is a necessity .
There is precious little to be said about the history of accounting in Mesopotamia . Whatever there is to be said is precious because it is in Mesopotamia that the concept of accounting was born (Keyt, 2011). Other civilizations may have expanded the concept of accounting but it is stewards and farmers in Mesopotamia who realized that accounting in itself was possible. However, whatever is to be said about accounting in Mesopotamia is little since as indicated above, the primary driver for the development of accounting is necessity and accounting was not very necessary in Mesopotamia. A culture of subsistence existed where production was limited to just enough to get by. In the absence of much excesses, there was no need to keep accounts. The concept of accounting would, however, develop when excess was realized in Mesopotamia (Keyt, 2011). Using clay and a sharp object, the records of excesses were carefully kept. Accounting would keep on growing in Mesopotamia, a key part of the growth, being the introduction of standard measures by Hammurabi, several millennia after accounting begun.
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By the time of the Roman Empire , excesses were the order of the day, rather than the exception, making accounting both necessary and indispensable. There were massive armies to be fed, equipped, and paid and also massive projects to be developed. Further, the owner of an investment and the investment itself would not be at the same place due to the vastness of the empire (Keyt, 2011). For example, the emperor would be at Rome when the army is in Persia or Egypt. The complications relating to distance and high volumes of material demanded an expansion of proficiency in accounting. Bigger and better accounting records that had the capacity to be better understood were developed. Politics also played a role in the development of accounting as the Senate in Rome would need to be convinced that the emperor and governor were acting in the interest of the Empire. The concept of developing attractive accounts, which is widely practiced today has its roots in the Roman Empire (Keyt, 2011). Therefore, the Roman Empire period of accounting development may not have created novelty, but it did create expansion and the indispensability of accounting.
Modern accounting as well as accounting as a course subject was developed in the medieval and renaissance period, mainly out of necessity and greatly aided by the penchant from printing. The concept of modern banking and money lending was mainly engineered by Jews, predominantly in the Middle East. The need to keep a record of what was owed by who and when it needs to be paid was developed through this early model of banking. Further, currently, dominant double column of book-keeping which is integral to modern banking can be traced back to 12 th century Egypt and to the same Jewish informal banking systems. By the 13 th century when a money economy began to be prominent in Europe, the necessity and indispensability of accounting were augmented (Akinyemi, Okoye & Izedonmi, 2015). The need for a better accounting to a wider segment of the medieval world would lead to the publication of the treatise Details of Calculation and Recording, arguably the very first accounting textbook. The concepts defined in the book were not novel but the success of the book contributed immensely to the spread of accounting in Europe. Further, towards the renaissance period, the concept of shares increased the necessity for accounting. Based on the concept of shares, investors would own shares in companies that they were not involved in running. A good account was the only way for the investors to keep track of their investments (Akinyemi, Okoye & Izedonmi, 2015). It is also in the renaissance period that professional accounting would begin, though closely intertwined with legal services.
The modern accountant began as a member of support staff popularly referred to as a bean counter, but has, out of necessity risen into a dominant management position almost to the level of overall manager. At the advent of modern accounting as a profession, the accountant was considered as a dull profession made up of boring members of support staff who spent time drooling over sheets of paper. Within the course of the 21 st century, corporations got larger, making money got more complicated, tax regimens became more confusing, and legal liability from a financial perspective became more pronounced and dangerous (Ahid & Augustine, 2012). The need to consult the accountant became more important than the need to consult the supervisor. Further, the accountants, understanding their relevance and indispensability detached themselves from solicitors and formed their own professional organizations as public accountants. The profession has gradually grown so that most commercial enterprises today need several internal and external accountants and auditors, all out of necessity.
Gradually the necessity of accounting has been growing through history, expanding the concept of accounting and augmenting the need for accountants. Accounting was at the time not necessary because of the subsistent nature of life. However, farmers began to produce more than they consume hence the need to keep a form of records. By the time of the Roman Empire, vast amounts of money and resources were being exchanged and moved in the ever-expanding domain thus expanding the concept of accounting later, in the medieval period, Middle Eastern Jews made a major contribution to the advancement of accounting thus preparing the world for modern-day accounting. Modern-day accounting continues to expand and in future, accountants might rule the world.
References
Ahid, M., & Augustine, A. (2012). The roles and responsibilities of management accountants in the era of globalization. Global Journal of Management and Business Research. 12(15). https://globaljournals.org/GJMBR_Volume12/6-The-Roles-and-Responsibilities-of-Management-Accountants-in.pdf
Akinyemi, B., Okoye, A. E., & Izedonmi, P. F. (2015) History and development of accounting in perspective. International Journal of Sustainable Development Research . 1(2). 14-20 https://pdfs.semanticscholar.org/edb7/ab8ce4337ed9785779473b430934c5bab07b.pdf
Keyt, M. (2011, February 09). History of accounting. Retrieved from https://accountingclubleeuniversity.wordpress.com/history-of-accounting/
