With more than 90 years of experience behind us, International Accounting Day is a great moment to pause and reflect on just how much the accounting profession has transformed.
Comparing the financial reporting landscape of 1933, when our firm dates back to, to that of 2025 shows an extraordinary journey shaped by changing businesses, evolving regulations, and rapid technological progress. What began as a simple bookkeeping exercise has grown into a sophisticated, globally aligned discipline that supports modern economies.
Back in 1933, financial statements were strikingly brief by today’s standards. Many companies produced just a balance sheet and a profit and loss account, often fitting neatly on a couple of pages. Notes were minimal, and disclosures were almost non-existent. The guiding principles were straightforward, rooted in prudence and historic cost. Auditors concentrated mainly on checking the maths and verifying the existence of key assets – an approach that suited the smaller, owner-managed businesses of the day.
Record-keeping was entirely manual. Ledgers were handwritten, calculations were done on paper, and preparing year-end figures required long hours and exceptional attention to detail. Financial statements were used primarily for internal purposes or occasionally by a banker looking for reassurance, not by the broad range of stakeholders who rely on them today.
Fast-forward to 2025, and the picture is completely different. Decades of regulatory development, international standard-setting, and rising public expectations have reshaped financial reporting into a far more detailed and transparent process. A modern set of financial statements typically includes:
- A statement of financial position
- An income statement
- A statement of cash flows
- A statement of changes in equity
- Comprehensive notes on accounting policies, estimates, judgements, and disclosures
Audits have evolved just as significantly. Today they follow rigorous international standards, with structured planning, detailed risk assessments, documentation requirements, and evaluations of internal controls. Even the auditor’s report now provides richer insight, often highlighting key audit matters.
One of the biggest changes is the shift toward transparency. While 1933 accounts offered only the essentials, today’s reporting demands deeper explanation around:
- Fair-value measurements
- Financial instruments and risk exposures
- Related-party transactions
- Assumptions underpinning estimates and valuations
- Segmental information
Investors, lenders, regulators, and even employees expect a much fuller understanding of a company’s performance and risks. As a result, financial reporting has expanded from presenting numbers to communicating context, narrative, and analysis.
Technology has been a major catalyst for these advances. Handwritten ledgers have given way to cloud-based systems with automated postings, real-time reconciliations, and powerful analytics. Digital audit trails, bank feeds, and workflow automation have boosted both efficiency and accuracy. These tools don’t just support annual reporting; they provide continuous financial insight to help businesses make smarter decisions.
Another notable development is the widening scope of what companies report. In 1933, accounts focused purely on financial results. By 2025, many organisations also share information on environmental, social, and governance matters, climate-related risks, sustainability strategies, and long-term resilience. This reflects changing stakeholder expectations and demonstrates the profession’s ability to adapt.
Yet, despite all this progress, the core purpose of accounting remains unchanged: to present a clear, reliable record of an organisation’s activities and financial position. Whether compiled by hand in the 1930s or produced through advanced software today, accounting continues to be a foundation of trust and transparency.
The journey from the concise reports of 1933 to the detailed, technology-driven statements of 2025 highlights the profession’s ongoing commitment to clarity, accuracy, and public confidence. As a top 50 firm, Hillier Hopkins will continue to evolve with the industry, ensuring that financial information remains relevant, robust, and dependable for years to come.