Accounting is a somewhat technical process that companies use to record the financial information from their company. While accounting is several centuries old, the use of computers and creation of electronic accounting arose in the early 20th century.
Adding machines and basic computers were the start of computerized mathematical functions in the mid-1600s through the early 1930s. Computers in the first and second generations of computers in 1951 through 1964 and 1959 through 1964 were the beginning of the computer revolution. The 1980s brought the first computers to the market for everyday business use.
Electronic accounting began with the use of spreadsheets. Spreadsheets allowed accountants to translate the manual functions of the general ledger into a computerized accounting system. Software companies would eventually create software programs to focus on accounting, based on traditional accounting processes.
Many software programs exist in today’s business environment that allows companies to customize their computers and software application to their business practices. Electronic accounting allows companies to process financial information much quicker than using manual processes. Electronic information also is easier to store and takes less space.