A person should not go to sleep at night until the debits equal the credits” told by Luca Pacioli. In 1494,Pacioli writes a book namely "Summa de Arithmetica, Geometria, Proportioni et Proportionalita", which means "Everything About Arithmetic, Geometry and Proportion" which was published in Venice. This is the very first record on double entry book-keeping that laid the foundation for future works on business accounting. The author of the book was an Italian mathematician called Luca Bartolomeo de Pacioli, who described the use of journals and ledgers. He warned that one shouldn't sleep at night until the debits equalled the credits.In November 10, 1494, this first book about double-entry bookkeeping was published.And we commemorate the International Accounting Day on November 10: the day to reflect on what it means to be an accountant and a great opportunity to celebrate all accountants.Each year on November 10th, we pay tribute to the work of Luca Pacioli, “The Father of Modern Accounting.” We also honour all those who have chosen the profession of accounting: a profession that was traditionally dedicated to helping businesses and individuals balance the books and keep their tax affairs in order. However, the modern accountant must do much more than reconciliations and tax calculations. Clients now expect their accountant to help them achieve their goals in every step in their daily life.
The origin of first Accounting Day
The first official celebration of Accounting Day was held in the year 1972. Somebody opines that the San Diego Chapter of the California Society of CPA's (Certified Public Accountant)organized this event to spark the interest in young people and encourage them to take up Accounting as a career. However, many others believe that the IMA (Institute of Management Accountants) was the original organizer of this event.
International Accounting Day gives recognition to accountants and was started in honour of Fra Luca Bartolomeo de Pacioli, often known simply as Luca Pacioli, an Italian mathematician who is seen as the father of accounting and bookkeeping. Born in 1445 in Tuscany region of Italy in 1445, Pacioli's book was the first great general work on mathematics published, which was widely read and used by mathematicians in the sixteenth century. The book was also the first book to include information about double-entry bookkeeping, a system that involves debit and credit entries for transactions, which was known as "the method of Venice" at the time.
Accounting can be defined as "a system of recording and summarizing business and financial transactions." The first accountants worked in ancient Mesopotamia in temples, where they kept track of taxes paid to religious authorities. They invented writing in the process, as a way to record receipts. Ancient tax records have been found on clay tablets there and in Egypt.
The importance of accounting expanded in the thirteenth century when Europe moved towards a monetary economy. This was followed shortly thereafter by Luca Pacioli's book. The first professional organizations for accountants were started in Scotland in 1854: the Edinburgh Society of Accountants and the Glasgow Institute of Accountants and Actuaries. The profession continued to grow and the American Institute of Certified Public Accountants was started in 1887. Today, accountants who have passed certification exams may have titles such as Cost & Management Accountant (CMA), Chartered Accountant (CA), Certified Public Accountant (CPA) etc. Today we celebrate them and their profession, as well as the father of accounting, Luca Pacioli.
Since its inception in 1972, this annual event is celebrated globally to give recognition to accountants who are saddled with highly demanding jobs. In many countries, it is an event to honour accountants for managing finances, devising and implementing economic, business and financial strategies thereby making organisations healthy.
It is also in recognition of accountants’ key role in enhancing public trust through high quality financial reporting. International Accounting Day is a good reminder to celebrate a centuries-old profession that is vital to business success. If you supervise an accounting team, be sure to offer your appreciation with rewards and recognitionto them. And for all, let us know about reconciling debit-credit in your daily life for sound sleep at night. Happy Accounting Day-2019!!
Md. Touhidul Alam Khan, is Deputy Managing Director & Chief Business Officer
of Prime Bank Limited.
He is also fellow member of Institute of Cost & Management Accountants of Bangladesh (ICMAB).
He can be reached: [email protected]
