Accounting is thousands of years old and can be traced back to ancient civilizations. [12] [13] [14] The early evolution of accounting dates back to ancient Mesopotamia and is closely linked to changes in writing, counting and money; [12] There are also references to early forms of accounting in Old Iran[15] [16] and the early audit systems of the ancient Egyptians and Babylonians. [13] At the time, the Roman government had access to detailed financial information. [17] The first book published on a double-entry accounting system was the Summa de arithmetica, published in Italy in 1494 by Luca Pacioli (the “father of accounting”). [21] [22] In the 19th century, accounting began to become an organized profession[23][24] where, in England, local professional organizations merged in 1880 to become the Institute of Chartered Accountants in England and Wales. [25] The accounting process primarily covers the financial impact of transactions. An important difference between a manual accounting system and an electronic accounting system is the latency between registering a financial accounting and booking it to the corresponding account. This delay, which is lacking in electronic accounting systems due to almost instantaneous booking on relevant accounts, is characteristic of manual systems and has led to primary book books – cash register, purchase book, sales book, etc. – for the immediate documentation of a financial transaction. A working document called an unadjusted test balance is established to check in part whether the booking process has been properly executed. In its simplest form, it is a three-column list. Column 1 contains the names of accounts in kind whose balance is unbalanced. If an account has a balance, the balance is copied to column 2 (credit column).

If an account has a balance, the amount is copied in column 3 (the credit column). The column is then added up, then the credit column is added together. Both sums must agree – which is no coincidence – since according to the double entry rules, if a booking is made, the booking charges correspond to the booking credits. If the two amounts do not match, an error was made in the recordings or during the booking process. The error must be located and corrected, and the amounts of the column and credit column are recalculated to verify the agreement before a new processing can be made. Accounting can be subdivided into several areas, including financial accounting, management accounting, external review, tax accounting and cost accounting. [5] [6] Accounting information systems are designed to support accounting functions and related activities.