Business Business Business... Numbers

Accounting in Antiquity

The age of the accounting trade is frankly a sad commentary on the world. Of all the things humanity has created – arts, theatre, technology, medicine – keeping track of money/valuables is one of the oldest. Even back to the days of the flood, Noah was instructed to take an accounting of the Lord’s valuables (His creations the animals). Down through Moses we have records of accounting (i.e. the entire book of Numbers). Trade records and bartering systems were al accounted for and assessed, if not on a social level then on an individual one. Men have always been trying to be richer than his neighbor. And how does he know he’s rich? He accounts for what he and his neighbor have. In ancient Greece, officers were required to give accountings of the fund entrusted to them at the conclusion of their service. They were expected to properly manage the funds that had been given them. The importance of wealth and stewardship were not lost on the Greek and so they were sure to require an accounting of those who had been given so much. In ancient Rome, accounting played a particularly important role in leading the home. Fathers were expected to keep track of the accounts of the home. Fortunately, the lack of credit cards and predating of shopping malls made monitoring teenage spending significantly easier. Most purchasers were made with cash; however, there are clear indication that receivables and payables were set up with merchants and customers. As time lapsed into the medieval ages, we say an apparent retrogression of the accounting systems however apparently “Charlemagne had an elaborate system of accounting for income and expenditures and required detailed reports from all his subordinates.” (Kester, 1917)

Accounting in a less Ancient Time

Accounting has been formalized and structured over the centuries. In fact, the reliance on the way we account for things has a tremendous impact on everyone’s daily life. The value we give to different currency; the prices floors and ceilings that certain markets and commodities bear; and the amount of money we pay in taxes each year all depend how we account for our money. On a nationwide scale, the most significant change to the accounting system in recent history is the Sarbanes-Oxley act passed in the wake of the Enron/Arthur Anderson debacle (Koehn and Stephen, 2004). This act revamped the way big businesses are allowed to account for their money. How does this affect the average consumer? Corporation now have to pay significantly more to have their accounts managed, these types of costs are always passed on to the consumer.

Accounting has been around a long time, and will be around forever. At the very least, men and women will always be required to give an accounting of the labors, which very well may include how we spend our money/substance.

Kester, R. (1917). Accounting - Theory and Practice. In Accounting Theory and Practice (pp. 2-4). New York: Ronald Press Company.

Koehn, Jo Lynne, and Stephen C. Del Vecchio. "Ripple Effects Of The Sarbanes-Oxley Act." CPA Journal 74.2 (2004): 36. MasterFILE Complete. Web. 4 Dec. 2014.