8 Types of Accounting

types of 8EACCOUNTING As a result of economic, industrial, and technological developments, different specialized fields in accounting have emerged. The following are 8 of the most famous types of Accounting. #1 Financial Accounting Financial accounting involves recording and classifying business transactions, and preparing and presenting financial statements to be used by internal and external users. Managerial Accounting Managerial or management accounting focuses on providing information for use by internal the management. This users, branch deals with the needs of the management rather than strict compliance with generally accepted accounting principles. #2 $ $5 Cost Accounting #3 Sometimes considered as a subset of management accounting, cost accounting refers to the recording, presentation, and analysis of manufacturing costs. Cost accounting is very useful in manufacturing businesses since they have the most complicated costing process. Auditing External auditing refers to the examination of financial statements by an independent party with the purpose of expressing an opinion as to fairness of presentation and compliance with GAAP. Internal auditing focuses on evaluating the adequacy of a company's internal control structure. #4 Tax Accounting Tax accounting helps clients follow rules set by tax authorities. It includes tax planning and preparation of tax returns. It also involves determination of income tax and other taxes, tax advisory services such as ways to minimize taxes legally, evaluation of the consequences of tax decisions, and other tax-related matters. #5 Accounting Systems #6 Accounting systems involves the development, installation, implementation, and monitoring of accounting procedures and systems used in the accounting process. It includes the employment of business forms, accounting personnel direction, and software management. Fiduciary Accounting #7 Fiduciary accounting involves handling of accounts managed by a person entrusted with the custody and management of property of or for the benefit of another person. Forensic Accounting #8 Forensic accounting involves court and litigation cases, fraud investigation, claims and dispute resolution, and other areas that involve legal matters. This is one of the popular trends in accounting today. Source: http://www.accountingverse.com/accounting-basics/types-of-accounting.html http://www.jamiesonaccounting.com.au/