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The history of bookkeeping

April 29, 2020 2:56 pm

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Bookkeeping is an important process that is used day in and day out by Gloucester Accountants and allows them to report on key financial matters relating to a businesses overall performance as well as providing figures for tax and VAT returns to be filed.

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Here is a potted history of bookkeeping.

Bookkeeping has been around for thousands of years in different guises including the use of tokens and rocks and to count items. The birth of the modern day bookkeeping method came about thanks to Luca Pacioli. He was a late 15th Century Italian mathematician that developed the idea of double entry accounting. He developed the system of journals and ledgers and detailed these in his book ‘Everything About Arithmetic, Geometry and Proportion.’

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It is this system that has been honed over the years and moved from paper recording onto dedicated computer software and has now moved onto cloud accounting software systems such as Xero and Quickbooks. These systems make it quicker and easier for accountants to check and report on a company’s financial position as well as allowing for direct reporting to HMRC for VAT and tax purposes which will become essential when Making Tax Digital is universally rolled out.

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