Outsourced Bookkeeping Services Flashback: The History of Bookkeeping

We’ve come a long way, baby! We’ve all heard that term used in a myriad of different things, but have you ever applied it to the concept of bookkeeping. The fact is, we have come a long way! That process that has taken us from recording numbers on stones to having technology that allows for outsourced bookkeeping services may seem a bit mundane, but actually reflects the transition mankind has made as we have moved from cave dwellers to the 21st century. And as is true in much of modern life, even though travel is easier than ever, it is needed far less for the bookkeeping industry, thanks to technology.

Early Roots

While it is most likely that the first attempts at bookkeeping were anything but professional, the principles of counting and keeping track have been around for centuries, even before governments began demanding percentages of income. After all, most people want to know where they are with their finances. Fast forward past the years of stone carving and even the abacus, and we find the first major breakthrough in 1416, when a man named Benedikt Kotruljević invented double entry bookkeeping, which revolutionized accounting and bookkeeping principles. While double entry may seem tedious since it does require every single transaction to be entered twice, it enabled checks and balances for the accounting system.

The Not So Distant Past

If you are much over the age of 40, you may be familiar with the old fashioned ledger system: a series of books for different accounts that kept bookkeepers busy for hours, tediously recording debits and credits, while ensuring everything stayed in balance. Running totals were vital, and the smallest mistake could lead to hours and hours of painful searching to discover just where things got off.

The Advent of Modern Technology

If for no one else, modern computers were a godsend for the accountant, freeing him from stacks of ledgers and presenting him an easy mechanism for recording debits and credits in a variety of digital ledgers. Life truly was revolutionized. The internet issued in a new era in accounting: the practice of easily transferring information from one place to another without travel.

Outsourced Bookkeeping Services

This ability to transfer information has provided businesses with a new phenomenon: accounting services that are professional, thorough, and cost-saving, without hiring new staff. Outsourced bookkeepingservices mean that small businesses have access to what the big guys have always had: professional financial services, accurate financial report, sound business advice, all for a fraction of the cost having such services on staff would cost. Now, our history lesson turns to a bit of advice: if your business needs some professional financial services, consider choosing outsourced bookkeeping services and write some new history for your company.