Accounting boasts a rich history dating back thousands of years, with early methods laying the foundation for the modern practices we use today. Ancient civilizations such as Mesopotamia, Egypt, and China trace the origins of accounting.

Ancient Civilizations

In fact, the inception of accounting occurred in civilizations of the irrigation type, with early examples found in clay tablets from the Babylonian period and the Kipu – Inca Nodal Writing System. In Mesopotamia, evidence of tax collection dates back to around 2800 BC, where clay tablets recorded transactions. Meanwhile, in Egypt, papyrus scrolls were used for similar purposes.

The first known taxation took place in Ancient Egypt around 3000-2800 BC, with taxes collected in the form of natural products like grain, livestock, textiles, and honey. Each city had its own tax system, providing a foundation for sustaining the population and army during challenging times.

Ancient Rome – real Accounting history

In Ancient Rome, early forms of taxation included the “centesima rerum venalium,” a 1% sales tax on goods sold at auction, and a land tax known as “centesima rerum rusticarum.” Private enterprises in Rome utilized the “Adversaria” and “Liber rationis” for accounting purposes, documenting various operations and classifying them into categories.

Indeed, apart from accounting records, Roman books covered diverse topics, from family asset management to genealogies, family events, meteorology, and political events. Money changers and bankers used books like “Kalendarium” for loan terms and “Patrimoniorum” to record income from land and livestock.

Money does not stink

The responsibility of keeping accounts in Rome was assigned to the ratiocinator (accountant) and logographer (bookkeeper). They preserved Roman accounting traditions, which grew in accuracy and legal validity with the emergence of trade law.

In a notable historical twist, Roman Emperor Vespasian implemented a tax on public urinals. In fact Roman senators actively questioned emperor about the morality of such revenue collection. However, Vespasian responded with the famous phrase, “Pecunia non olet” or “Money does not stink.”

Thank you for joining us on this exploration of accounting history and reading this post until the end.

We appreciate your comments, likes, and sharing with friends and colleagues. For more insights and a free consultation, visit 777taxes.com and call us at (416)857-7570. Subscribe on our YouTube channel: https://www.youtube.com/@777taxes GMB profile: https://maps.app.goo.gl/HgfQdsenRFaaXtNY9

Your success starts with informed tax strategies!

#AccountingHistory #AncientAccounting #TaxationThroughAges #FinancialHeritage #CanadianTaxSystem #777Taxes #BusinessFinances