Accounting practices are as old as commerce itself, dating back to Egyptian dynasties that flourished thousands of years before Christ. The Fertile Crescent along the Nile was contained soils that were rich in nutrients and capable of producing crops. Sale of grains and produce gave the owners of lands a way to earn by charging a price for the items that were sold to others. Civilizations in
. Mesopotamia, a region that is now known as Iraq, also had access to fertile lands along the Tigris and Euphrates rivers. As land owners accumulated wealth, it became important to them to keep a record of goods sold and the equivalent of money was received. Accounting, then and now, is all about keeping track of income received and cash outflows. The practice of accounting allows one to make internal checks that can verify the accuracy of the information that one wants to count. Balancing the income against the outflow is a method that helps one keep accurate records of transactions. Double-entry bookkeeping, for example, allows one to check on accuracy by totaling the numbers in two different ways. If the totals that are summed vertically match the totals that are summed horizontally, then one has achieved the balance that is desired. Reliance on computer automation has greatly increased the accuracy of accounting, but the methods that produce results are basically the same as those that have been used manually for generations of accountants. A site for small businesses at http://smallbusiness.chron.com/accounting-closing-procedures-business-20994.html offers a full description of closing procedures along with many other essential practices used in accounting. The site also presents information about accruals, depreciation and reconciliation. The Wisc Online site at http://www.wisc-online.com/objects/ViewObject.aspx?ID=ACC1604 provides an interesting slide show that steps one through the various phases of accounting and the closing process. It is easy to follow, and one may benefit from reviewing the presentation. http://smallbusiness.chron.com/accounting-closing-procedures-business-20994.html or http://www.wisc-online.com/objects/ViewObject.aspx?ID=ACC1604
