Accounting is a way of determining the assets, liabilities and cash flow. From ancient accounting to modern accounting, it has been the lifeblood of any kind of business.
The most important part of any business is the money that comes in and goes out. Accounting monitors this closely by analyzing the transactions, payroll, and taxes. Therefore, defining the health of the business.
We can see how important accounting in business is. In order to start a business, it is mandatory to know about accounting.
So today we are going to learn about ancient accounting and modern accounting. Also, we are going to see how WordPress Enterprise Resource Planning (WP ERP) has an impact on accounting.
History of Accounting: Ancient Period to Modern Day Accounting
Better to learn from history then to repeat it!
Before jumping onto accounting, it is better to learn the history of accounting first. That is why we are going to discuss a little about ancient to modern times of accounting.
Accounting At Ancient Times
In the early days, accounting was all about counting, writing, and money. Back in the day, people relied on primitive accounting methods to record the growth of crops and herds. Because it was a natural season of farming and herding.
Between the 4th millennium and the 3rd millennium BC, the ruling leaders and priests in ancient Iran had people oversee financial matters.
During the medieval times in the 13th century, a breakthrough event occurred. The introduction of Double-entry bookkeeping, invented by Pacioli, the man now known as the father of accounting and bookkeeping.
This method defined as any bookkeeping system in which there was a debit and credit entry for each transaction, or for which the majority of transactions were intended to be of this form.
Accounting At Modern Times
Slowly but eventually accounting has become so developed, that there are systems available where you do not need to be an accountant to do accounting like WP ERP.
Two concepts have formed modern accounting, the method of double-entry bookkeeping and professionalization of accountancy.
As time progressed, accounting has gradually but eventually improved drastically. New methods have been introduced. Like,
- Data mining
- Demand Forecasting
- Lifecycle Cost Analysis
- Statistical Analysis
- Statistical Model
In this 21st century, there are many tools that have made accounting completely automated. Long gone the times when people used to write down all their accounting data. But now, Softwares are available to do that for them.
If we are going to talk about a solution that has modernized accounting, then we must talk about WordPress Enterprise Solution. With a rating of 4.5 and over 10,000+ installations from all over the world, WP ERP is being used both by small and medium businesses.
WP ERP has one of the best Accounting modules in WordPress.
How WP ERP Makes Modern Accounting Easy
WP ERP Accounting module has features so that even a non-accountant person can do accounting.
WP ERP has three core modules.
Let’s talk about how WP ERP has made accounting easy even for normal persons.
Managing Your Accounts
Taking care of your accounts is the principal task of any modern accounting software. Having said that, with WP ERP you can supervise your accounts with utmost ease.
WP ERP has an interactive dashboard, giving you a complete overview of your accounts payable and receivables, helps you in dealing with banks, shows you all the expenditures, revenues, liabilities, and assets on a specified time frame.
Invoice and Bills
An invoice is a document that records the transaction between the seller and the buyer. Therefore, there is no need to say how important an invoice is for a business.
WP ERP Accounting module provides an invoice with the tiniest details included.
Bill is another form of an invoice. It is a document received from a vendor, supplier, etc. usually for goods or services provided. You will gey a well-detailed bill generated if you are using WP ERP Accounting extension.
Tax Accounting- Modern Accounting Headache
Tax is a mandatory expenditure imposed by the Government to fund various public expenses. It can be different in different countries even in different regions. Also, there are kinds of tax rates as well. So, it often becomes difficult to keep track of all the different tax rates. As a result, difficult to calculate taxes.
Worried? no more worries. WP ERP Accounting module has a tax system that will allow you to set tax rates according to Zones, Categories, Agencies. So, you do not have to take extra pressure on calculating taxes.
Journal & Ledger
A Journal is a detailed account that records each and every account of a transaction that happens in a business enterprise stating the date. Whereas, the Ledger Report represents the detailed history of each account that takes place in the total life span of a business enterprise.
With WP ERP Accounting solution you can create the financial reports automatically and the right way even without knowing the basics of accounting.
These financial statements are not only important for ongoing management, but they also help attract investors and satisfy creditors and suppliers. The journal and ledger are the starting points in a well-organized accounting system
Generating reports from ledgers and journals can be exhausting and time-consuming. However, you can generate reports with just one click of your mousepad using the WP ERP accounting module.
You can generate,
- Trial Balance
- Ledger Reports
- Income statement
- Sales Tax
- Balance Sheet reports.
Payroll and Inventory Management
To make your life easier, WP ERP Accounting solution has powerful extensions like Payroll and Inventory management.
Payroll makes employee salary management completely automated.
You can automate,
- Employees salaries
- Overview of the Payroll system
- Configuring bank and tax details of individual employees
- Choosing a specific payment methods
- Creating pay calendars
- Fetching any employee information
- Creating, printing and emailing individual employee salary invoices.
Using the Payroll extension of WP ERP Accounting module.
Now let us talk about the Inventory management extension. Inventory management is necessary for your business.
Balancing between the risks of inventory gluts and shortages is especially difficult. Therefore, a proper way should be maintained in order to make that process smooth.
With inventory management, you can,
- Keep track of your inventories
- Keep track of your everyday transaction
- Plan for the future with overall reports
- Add products with different categories
You can see how WP ERP Accounting module can have a great impact on modern accounting. Now with a more improved version of the WP ERP solution available, accounting has become easy even for a non-accountant person.
Accounting is one of the most important traits to keep a business floating. Since the ancient to this modern time accounting has evolved and improved.
Furthermore, solutions like WP ERP has only added to the feathers to the accounting cap. What’s interesting is that you can get this first complete enterprise solution for free. Why wait then.