There are 7 types of
accounting which includes government accounting, forensic accounting, cost
accounting, auditing, tax accountant, financial accounting and management
accounting or also known as public sector accounting, refers to the type of
accounting information system used in the public sector. Government accounting
includes accounting for legislative bodies and government department. The need
to have a separate accounting system for the public sector arises because of the
different aims and objectives of the state owned and privately owned
institutions. It ensures the financial position and performance of the public
major concern of many governments.
accounting is latest branch of accounting which involves the application of
knowledge and accounting standards in the court of law. This field also
involves the reconstruction of financial information when a complete set of
financial records is not available. This set of skill can be used to
reconstruct the records of an unlawful records. Forensic accountant also acts as
expert witnesses in courts of law in civil and criminal disputes that require
an assessment of financial effects of a loss or the detection of a financial
accounting is an accounting method that aims to capture a
company’s costs of production by assessing the input costs of each step of
production as well as fixed cost. Cost accounting is often used within the
company to aid in decision making. This branch of accounting that observes and
calculate the actual costs of a company’s operations. Internal managers, rather
than auditors use cost of accounting most the time to identify aspects of their
company where cost can be cut or lessen.
Auditing is an
efficient procedure of examining the financial information of an entity with
the aim of giving an opinion on true, honest and fair view. Auditing is a
critical, unbiased investigation of each and every aspect of the transactions.
Moreover, mistakes and frauds manipulation in accounts or misappropriation can be
detected through thorough inspection.
Tax accounting is an
accounting that is tax related. It deals with business or company’s tax
liabilities. Tax accountants are responsible to calculate taxes on behalf of
business or company and individuals. Tax accountants tracks all the amount of
transactions that the company have to pay and the due date of paying the tax.
They will calculate to try lessen the amount needed to pay for tax in a legal
is the process of preparing financial statements such as income statements and
balance sheet for every transactions made. It is to be used by internal users
and external users. External users such as shareholders or potential investor uses
it to check on the financial state before making any decisions. It also allows
financial accountants to track the current financial state based on incomings,
outgoings, assets, liabilities and transactions made.
includes activities to gather and prepare information intended for management
for the purpose of planning, controlling, decision making, and performance
evaluating and managing the organization as a whole. It is also to track the
business’s financial state which is similar to financial accounting. Management
accountants prepares the financial statements or information that is needed by
the managers to make future decisions and actions to be taken.