SlideShare a Scribd company logo
1 of 4
History of Accounting
in 3 Slides
Step 1: Management Accounting (small scale)

Business owner (Seller) sold to
the Customer on a piecework
basis and kept a “blog”
• Easy to record transactions
• Simple costing & pricing
• Cash on delivery

Origins & Evolution of Accounting
Step 2: Management Accounting (large scale)

Fixed Costs
Machinery (Fixed assets)
Workforce
Overheads
Efficiency Rates
per hour/person/machine
Stock management
Cashflow
Payment delays
Budgeting
Forecasting

Origins & Evolution of Accounting
Step 3: Financial & Taxation Accounting

Shareholders
Profit Yes/No?
Dividend Yes/No?
Companies office/Banks
Trustworthy management ?
Legal activities?
Taxation
Taxable Profit?
Payroll deductions
Vat

Origins & Evolution of Accounting

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History of accounting

  • 2. Step 1: Management Accounting (small scale) Business owner (Seller) sold to the Customer on a piecework basis and kept a “blog” • Easy to record transactions • Simple costing & pricing • Cash on delivery Origins & Evolution of Accounting
  • 3. Step 2: Management Accounting (large scale) Fixed Costs Machinery (Fixed assets) Workforce Overheads Efficiency Rates per hour/person/machine Stock management Cashflow Payment delays Budgeting Forecasting Origins & Evolution of Accounting
  • 4. Step 3: Financial & Taxation Accounting Shareholders Profit Yes/No? Dividend Yes/No? Companies office/Banks Trustworthy management ? Legal activities? Taxation Taxable Profit? Payroll deductions Vat Origins & Evolution of Accounting