Whether the Double-Entry Accounting Method Is Obsolete and Should Be Eliminated - Essay Example

This is because computers are now being used to sort and summarize transaction data more quickly and more accurately. This has made the practice of maintaining ledgers to produce periodic reports unnecessary, as financial reports can now be produced at any given time.

Accounting has indeed been growing and changing rapidly because of the natural financial needs of the time. Accounting started with very basic inventory methods using stone markings in clay and has evolved into a very complex combination of rules and regulations. The future of the profession is sure to see many more changes as the needs of investors and management change. The double-entry bookkeeping method was developed in Italy around 1200 B.C. The first book written on double-entry bookkeeping was written by Luca Pacioli in 1494. 

Control methods are often deemed as double-edged swords. On one hand, they can protect a company's AIS and provide tangible benefits for the company. On the other hand, control methods can have negative effects on employee morale. Some people believe that business controls create resentment and loss of company morale. This is against the production of any tangible benefits through control methods. Control is essential in any organization, as is a necessary aspect of describing things in a way that allows for proper resource and monetary measurement. Business success begins with intelligent money management and control and one cannot know where one is going without knowing the current position.

Information and communication are also vital to innovation, morale, and also change. In accounting, loss of cost control efforts will reduce profitability. Adversely, control measures and layoffs can cause loss of skilled, qualified employees, loss of productivity, and other major moral issues. All things considered, control, communication, and information are very essential to productivity, innovation, morale, and change.