Md. Mizanur Rahman ACS :
Fra Luca Bartolomeo de Pacioli, the Father of Accounting and Bookkeeping wrote a book titled “Summa de Arithmetica Geometrica Proportioni et Proportionalita” (The Collected knowledge of Arithmetic, Geometry, Proportion, and Proportionality) which included a 27 page treatise on Bookkeeping. One chapter of this book, “Particularis de Computis et Scripturis” (Details of Calculation and Recording) was on the topic of Double-Entry System. That book became the reference book and the only teaching tool on the subject of Accounting for the next seven hundred years. That chapter educated the readers about the use of Journal and Ledger, Income and Expenditure, Accounting for Assets, Receivables, Inventories, Liabilities, Capital, keeping a Balance Sheet and Income Statement. This book was first published on 10th November, 1494. That’s why the 10th November bears great significance to the whole Accounting community. Especially this book was the first work on Mathematics which was read and used by the Mathematicians in the sixteenth century.
The first professional organization for the Accountants started in Scotland in 1854 named “The Edinburgh Society of Accountants and Glasgow Institute of Accountants and Actuaries”. In 1880 The Institute of Chartered Accountants in England and Wales (ICAEW) was formed merging with the local professional bodies. Gradually this profession continued to grow and The American Institute of Certified Public Accountants (AICPA) started in 1887. Generally Accepted Accounting Principles (GAAP) came about after the 1929’s Stock Market crash. The Financial Accounting Foundation (FAD), an independent organization responsible for administrating the Financial Accounting Standard Board (FASB) and the Government Accounting Standard Board (GASB) was established in 1972.
The first Accountants used to work in ancient Mesopotamia in temples, where they used to keep the track of taxes paid to the religious authorities. Later, the Accountants used to do the works of determining the rent, collection and maintenance of the treasury of the subjects in different royal palaces. Gradually the nature and scope of the Accountants’ work began to change. Currently Accountants do not prepare taxes only, moreover they can investigate the white color crimes, audit or even can work exclusively in the government and manufacturing organizations also. In any organization Accountants are the main key player. Usually they work with the top level Management and various Line Managers of the organization. They have to ensure the proper utilization of the funds of different projects. They work with mental stress all the time. But when a project is completed successfully, they get acknowledgement from the Management. They ensure transparency and accountability in their works. That’s why the status and dignity of the accountant is much more than any other professionals in the organization.
It is a dynamic profession where besides Accounting knowledge a person needs some additional qualities; Efficiency in IT, Team working ability, Ability to work within the deadlines, Interpersonal and strong communication skill, Integrity, Accountability, Transparency and Self Motivation. Nowadays, there are Accounting Standards, Accounting Principle, Ethical Standards for the Accounting professionals to follow. Sometimes they have to take a stand against the organization to protect the interests of the stakeholders. But in all cases they need to remain steadfast in professional ethics.
Like an exclusive day for any other profession, there is a particular day for the Accounting Professionals too. The first official celebration of the “International Accounting or Accountants Day” was held in the year 1972. It is said that “San Diego chapter of the California Society” of CPA’s (Certified Public Accountants) first organized that event. Since then every year this international event is celebrated gorgeously all around the world. The main reason of celebrating International Accounting Day is to promote the Accounting Professionals. It is a day for both those who are in this profession and who are looking to get involved in this profession. However the “International Accounting Day” is not celebrated nationally in Bangladesh. In our country the Institute of Chartered Accountants of Bangladesh (ICAB), the Institute of Cost and Management Accountants of Bangladesh (ICMAB), the Institute of Chartered Secretaries of Bangladesh (ICSB), the Institute of Certified General Accountants of Bangladesh (ICGAB), Bangladesh Accounting Association (BAA), ACCA Bangladesh celebrate this day gorgeously.
Today, Accountants play a huge role in handling the monetary ebb of the economy. Each business, company, government and individual use at least basic Accounting Principle during their daily activities. In fact from birth to death a man is controlled by the Accounting. It teaches a man to be accountable to one’s own deeds. That’s why Luca Pacioli said-a person should not sleep at night until debit equaled credit. Like Accounting, there must be a proper balance in everyone’s life. That’s why it can be said that Life is like Accounting, here everything must be balanced.
(Mr. Mizanur is an Associate Member of the Institute of Chartered Secretaries of Bangladesh (ICSB). Email: [email protected])
