The meaning, or rather, the raison d’être of accounting today is understood and experienced in different ways. Which sometimes undermines its importance.
Every major science or discipline has a solid foundation and often a rich history. Accounting too. It is not a modern invention, as many think, it probably originated more than 5000 years ago. This makes it one of the oldest human inventions.
However, it is generally believed that modern accounting was invented in Venice, a city port in the Mediterranean Sea. In 1494, it was an epicentre for growth in southern Europe. It was Luca Pacioli, an Italian entrepreneur, who felt that the time was ripe for him to be able to really assess the financial situation of his company, to monitor it properly and to adjust if necessary. His method quickly became the basis for the decision-making of the many Venetian merchants. Pacioli’s method became their compass, on and off the water. Everywhere. Always.
What’s going on in the accounting world today?
Today, accounting is seldom fully up-to-date, and that’s not how it was meant to be. Well, I know, everything changes and that’s how it’s supposed to be. But nowadays, many companies, especially smaller ones, see their bookkeeping as a necessary evil that exists primarily for tax purposes. In addition, there is often a separate ‘internal accounting’ in addition to the official books. This will often be an Excel spreadsheet, allowing to follow up the company with figures. Simply because their bookkeeping is not good enough, or perhaps not user-friendly enough to use as a basis for decision-making.
With access to the last quarter’s figures, it is simply not easy to make the right decisions and make reliable forecasts.
Check it out for yourself – Do you have an immediate answer to the following questions?
- The result: how’s your business doing at this exact moment?
- Liquidity: is there enough money?
- Key figures: are we on track?
- Traceability: are you able to deduce all business facts and decisions taken? And do you see these effectively in your figures?
You may be able to find some useful figures, at first sight, from your annual accounts or other reports that have been drawn up afterwards – but I myself do not know of any platform that allows you to make strategic choices based on truly reliable figures. That is exactly why we will launch TOCO soon.
Decisions based on real-time data
You’d better be at the helm of your company with a reliable compass at hand. This is the only way to do business efficiently – with a long term view. By digitalizing and automating all your documents and streamlining your financial processes, turnaround times are greatly reduced and in many cases even eliminated. With TOCO you follow your company in real-time, with validated Silverfin figures, replacing the separate, “internal accounting” Excel sheet, exactly as Pacioli envisioned it in 1494.