Accounting: A journey through time
Since this sawalef issue is on the accounts department, I would like to share
with all the readers some interesting facts about the origin, development and its
importance in our lives.
If we look at the history of accounting it is as old as civilisation, key to important
phases of history, among the most important professions behind successful busi-
ness. Accountants participate and contribute in development of cities, trade and
concept of wealth and numbers.
The big businesses require capital market that depends on accurate and useful
information. This was supplied by what became an accounting profession.
In the Holy Qur’an, the word “account” (Arabic: hesab) is used in its generic
sense, relating to one’s obligation to account to God on all matters pertaining to
human endeavour. According to the Holy Qur’an, followers are required to keep
records of their indebtedness, thus Islam provides general approval and guide-
lines for the recording and reporting of transactions
Accountants through scientific accountability, participated in the development of
money and banking, invented double entry bookkeeping that fuelled the Italian
Renaissance, saved many Industrial Revolution inventors and entrepreneurs
from bankruptcy, helped develop the confidence in capital markets necessary for
western capitalism, and are central to the information revolution that is transform-
ing the global economy.
An accountant measures, aggregates and reports financial information neces-
sary for the sake of decision making by organizational managers, owners, inves-
tors, government agencies and other users. Timely and accurate information on
operations is crucial to success in the recent days of rapidly changing business
environment, and the accountant is the one responsible for the critical business
function that mostly though indirectly affects our career and everyday life.
As long as there will people in this world, there will be business, and as long as
there is business, there will be accounting. Accounting is involved in virtually eve-
rything in our lives whether we know it or not, and its importance can sometimes
be overlooked. Everything needs accounting. From a baseball cap you wear, to
the food you eat, to the company you work for, accounting is needed. Today, a
global real-time integrated information system is a reality, suggesting new ac-
counting paradigms.
Accounting promotes a better life style. Life is not as easy as driving on the road
with traffic lights and signs along the way, but we still need financial signals in
our life whether we are in comfortable phase or in danger phase to detect that
signals that requires help. Accounting can help people detect these dangers well
in advance and put in place remedial measures.
Murtaza F. Dilawar
Finance Manager - Corporate
Al Habtoor Group
Murtuza F. Dilawar
Editorial Message
