Different types of accounting you need to know

Many people don’t know but accounting is an umbrella term comprising many branches into it. That’s the reason why many people are unaware of accounting field which is being used in today’s scenario. The fact is that accounting isn’t just accounting at all. It is more than this having end number of types and systems. To establish yourself in this field, you must be aware of different types of accounting.

Without beating around the bush, let’s talk about them below.

Sneak peek into different types of accounting

• Financial accounting

Financial accounting comes on the top of our list. The aim of this accounting is to track, record, and finally prepare a report on financial transactions by creating financial statements. This type of accounting looks back in your past performances and goes ahead to prepare a report.

• Public accounting

Next, we have is public accounting which provides services to numerous clients like retailers, manufacturers, businesses, government/non-profit organizations and a lot more. You can avail any type of accounting service from public accounting.

• Management accounting

This type of accounting is used by businesses nationwide. As the term suggests, this accounting is particularly designed to offer management with quality information to make significant decisions for their business.

• Government accounting

As the term itself says, government accounting is used by government organizations and financial bodies only. The accounting is basically operated by Governmental Accounting Standard Board (GAAP). They can help you track and report all the accounting standards for all level of government.

• Cost accounting

The most prominent type of accounting is cash accounting. This accounting is basically used in manufacturing environment and service businesses can also use this. Well, cost accounting considers both variable and fixed costs like materials, labor, maintenance, overhead, production cost and other costs as well.

• Tax accounting

The horrifying part of accounting is tax. Do you agree? Well, tax accounting helps businesses maintain the taxation cost and filing taxation form accurately without any mistake. With tax accounting, businesses can ensure the accuracy, calculate and report tax liabilities for their clients.

• Auditing

Auditing is the process which is designed to offer individual analysis of that financial activity to ensure whether the business is recording transactions following the acceptable rules and standard that apply.

Final wordings

The type of accounting doesn’t end here. There are many more types you can get to know. But above mentioned are important ones which you have already read. So, make sure to keep all these types of accounting in your mind. It will help run your business in a better way.

Many people don’t know but accounting is an umbrella term comprising many branches into it. That’s the reason why many people are unaware of accounting field which is being used in today’s scenario. The fact is that accounting isn’t just accounting at all. It is more than this having end number of types and systems.…