Computers were developed to perform routine tasks over and over based on a set of instructions and data provided by the user. Accounting and bookkeeping consists of a series of routine tasks (transactions) performed over and over with new data. Given the automation provided by computers and the routine nature of accounting, it was inevitable that the two would match up. In fact, the earliest applications of computers were for accounting purposes. American inventor Herman Hollerith's original tabulating machine was used to count the U.S. Census population numbers in 1890.

The first computer software designed for accounting purposes dealt with basic computations and accumulation of numbers. The large early computing systems added and subtracted numbers to help companies keep track of their financial information. As capabilities advanced, more complex systems were used for tracking customer transactions and related calculations.

Typical Applications

Accounting consists of...