What Is Accounting?
What Is Accounting?
What Is Accounting?
What Is Accounting?
Types of Accounting
Accounting can be broken down into several categories; each
category deals with a specific set of information, or documents
particular transactions. In this section, we discuss four of the
most common branches of accounting:
Managerial Accounting
Tax Accounting
Outsource to Professionals
Accounting software allows you to do basic tasks such as tracking inventory, invoicing and payments
Hiring an In-House Accountant
Bottom Line
Financial accounting is primarily concerned with the process of compiling information for financial reports for e
2. Managerial accounting
This type of accounting documents, monitors
and assists in the financial planning of an
organization. Their documentation is typically
meant for internal stakeholders rather than
the public. A managerial accountant must be
careful in communicating confidential
information and to whom. They work with
their managers to analyze and create a
budget to meet the needs of the short- and
long-term goals of the organization.
Managerial accountants are concerned with
analyzing past performance in order to make
predictions about future performance.
3. Cost accounting
Cost accounting can be seen as a
subcategory of managerial accounting;
however the activities of cost accountants will
affect both financial and managerial
accountants. Cost accountants are
responsible for documenting, presenting and
reviewing manufacturing costs. They oversee
all variable and fixed costs to see if output
aligns with the cost to produce a product.
They also work with managers to decide on
future decisions based on the financial
forecast and the progress of production.
4. Auditing
Related: What Is a CPA?
5. Tax accounting
7. Forensic accounting
Forensic accounting is used to investigate the
financial records of individuals or businesses.
It can require accountants to recreate
financial information when some information
is missing or not available to review. The goal
of forensic accounting is to gather all
available documentation and accurately and
comprehensively account for all transactions
in financial statements. These professionals
often work on legal cases involving fraud,
claims and disputes.
8. Public accounting
Public accounting refers to businesses that
provide accounting advice to clients based on
their needs. They can work in auditing, assist
with tax returns, consult on procedures
tailored to the installation of technology or
computer programs and provide legal advice.
9. Governmental accounting
Governmental accountants manage the
financial planning and allocation of resources
to departments within a local, state or federal
government. This type of accounting has
standards that must comply with the
Governmental Accounting Standards Board
(GASB), which is responsible for developing
consistent accounting procedures for local
and state governments. Federal employees
will comply with the Federal Accounting
Standards Advisory Board (FASAB).
Governmental accountants will also monitor a
government's budget and allocate funds
appropriately.
Adhere to facts
Emphasize ethical processes
1. Staff accountant
2. Payroll accountant
3. Tax accountant
4. Auditor
5. Financial accountant
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