How Does an Accounting System Work?
Summary
In 1458, he wrote Delia Mercatura et del Mercante Perfetto (Of Trading and the Perfect Trader), which included a brief chapter describing many of the features of double-entry accounting. In 1494, Luca Pacioli, from San Sepulcro in medieval Tuscany, published the Summa de Arithmetica‘s 36 short chapters on bookkeeping (entitled De Computis et Scripturis, or “Of Reckonings and Writings”) so the subjects of the Duke of Urbino could learn how to conduct business and provide the trader with a fast, accurate method to determine his assets and liabilities. At the time, this new method was heralded as an astounding discovery and was described as “a magic mirror, in which the adept sees both himself and others.” Today, double-entry bookkeeping is used for recording a transaction in two or more different places, or ledger accounts. Department managers and supervisors are responsible for identifying any additional documents needed to ensure the effective planning, operation and control of processes. Disaster security measures should be adopted to enable the company to continue the operations of the Accounting Management System with limited interruption.
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