What is the counting house?
The counting house is a physical location used by the company to fulfill its accounting functions and can also be referred to as a compiling house, because Compt is an archaic form of a verb that means counting. Not all businesses have their own accounting operations because it sometimes turns out that it is more cost -effective to make this feature a professional accounting service. However, accounting is a key function of any modern business and must be completed according to government standards to comply with tax regulations and avoid audit and government interventions in private business affairs. Monitoring goods and services, even the most basic of the commodities such as food, clothing and shelter, can be considered a form of accounting. Literally the term means "counting" and around 1300 NL was defined as counting for the provided or received money.
Ttvorba counting domestic practices really began to spread in early civilization, but when the store spread. This required to be determined inYmutable monetary systems in order to be fairly valued by goods and services. Historians will place the origin of accounting records and counting domestic practices with the Babylon Empire 4 500 BC.
The Hammurabi Code, written in 2,250 BC, is the first existing version of laws in human history that takes up accounting principles in dealing with the judgment for various violations of the law. It is known that the modern version of the accounting, which includes a strict process of balancing credits and debit, came from the institutions of counting that arose in Venice in Italy, during the Italian Renaissance at the end of the 14th century. At that time, Venice was a shopping center for the whole of Europe and trading from many distant regions was solved by traders and accountants.
Italian establishment of a form for modern accounting principles coming from the Italian Fra Luci Pacii in 1494 NL, mathematician and teacher in business practices thatHe was a friend of Leonardo da Vinci. Summa de arithmetica geometria, proporti et proportionalism or The knowledge of arithmetic, geometry, proportionality and proportionality was a book as many Renaissance texts that tried to cover a wide range of science and mathematics. However, Summa also had a key section dedicated to the accounting method of double input.
The description of the Pacii accounting included the use of formal magazines and books and set the land of a strict precedens in counting the house practices that books were not balanced until debit and credits were equal. Counting domestic practices of the modern era, in fact, is similar to descriptions of the 13th century Italy, because the description of the Pacolius accounting of merchants included details such as records for receivables, liabilities, investment goods, income and expenditure. Modern balance sheets and income statements are also based on examples in summa and the patient set the ground for the practice of fiscal year to uclosed the account statement. His book was one of the first printed and widely distributed, translated into German, Russian, Dutch and English, making it a celebrity of the time that resulted in a history that described it as "father of accounting".