Acc205 Final Paper
Final Paper
Matthew Duncan
ACC205: Principles of Accounting 1
LaKeitha Givens
June 13, 2011
Final Paper
What makes a large organization like Wal-Mart financially successful? One could say it is the result of outstanding personnel or perhaps a strong determination to succeed. These factors certainly contribute. However the key to financial success in organizations lies in good accounting. Since early civilization began, accounting has been an important part of our financial transactions. In today’s world our use of modern accounting systems and accurate financial statements are critical components that make modern organizations successful. To facilitate understanding of this point one must understand how modern accounting systems have changed organizations, why accurate accounting is important, and how both factors contribute to organizational success. As already mentioned, accounting is by no means a new practice. Archeologists have revealed that early civilizations used forms of accounting in their societies. (Accounting History Page, n.d.) One of humanities most crucial periods of progress in history, the renaissance, saw the advent of more complex accounting systems created by Luca Paciolli. After the renaissance, accounting continued to progress and advance. During the tremendous stock market crash of 1929 and subsequent Great Depression gave rise to more complex and standardized accounting procedures. These new procedures grew ever more complex, requiring organizations to possess more staff that were better trained, and more knowledgeable than before. Still, there was only so much that humans and paper alone could accomplish. Indeed this all changed with the introduction of the personal computer and information technology to the workplace. Modern organizations have been profoundly changed as a result. Accounting in practice has many facets, payroll, inventory, taxes, money accounts, and liabilities… just to name a
Matthew Duncan
ACC205: Principles of Accounting 1
LaKeitha Givens
June 13, 2011
Final Paper
What makes a large organization like Wal-Mart financially successful? One could say it is the result of outstanding personnel or perhaps a strong determination to succeed. These factors certainly contribute. However the key to financial success in organizations lies in good accounting. Since early civilization began, accounting has been an important part of our financial transactions. In today’s world our use of modern accounting systems and accurate financial statements are critical components that make modern organizations successful. To facilitate understanding of this point one must understand how modern accounting systems have changed organizations, why accurate accounting is important, and how both factors contribute to organizational success. As already mentioned, accounting is by no means a new practice. Archeologists have revealed that early civilizations used forms of accounting in their societies. (Accounting History Page, n.d.) One of humanities most crucial periods of progress in history, the renaissance, saw the advent of more complex accounting systems created by Luca Paciolli. After the renaissance, accounting continued to progress and advance. During the tremendous stock market crash of 1929 and subsequent Great Depression gave rise to more complex and standardized accounting procedures. These new procedures grew ever more complex, requiring organizations to possess more staff that were better trained, and more knowledgeable than before. Still, there was only so much that humans and paper alone could accomplish. Indeed this all changed with the introduction of the personal computer and information technology to the workplace. Modern organizations have been profoundly changed as a result. Accounting in practice has many facets, payroll, inventory, taxes, money accounts, and liabilities… just to name a
References: Kelly, M., & 42 staff. (2011, June 10). Cyber crime represents a growing threat, FBI agent tells summit attendees Accounting History Page. (n.d.). Retrieved June 10, 2011, from Mays Business School at Texas A&M University website: http://acct.tamu.edu/giroux/history.html Sage Peachtree. (2011). Retrieved June 12, 2011, from Sage Software, Inc. website: http://www.peachtree.com/productsservices/complete Salary Snapshot for Accountant Jobs. (2011, June 4). Retrieved June 12, 2011, from PayScale website: http://www.payscale.com/research/US/Job=Accountant/Salary