Financial & accounting
The Four Main Types of Accounting
Public accounting is also called assurance services. It is the broadest and most varied type of accounting. These accountants practice bookkeeping, financial analysis and account management services. The duties carried out by public accountants range from tax preparation and advices, to consultations in the areas of employee compensation and accounting system design. Some also audit their clients’ financial records and ensure statements have been managed properly. These accountants primarily look at historical financial data and discover problems or errors.
Management accountants are those that are employed by a business or agency for the purpose of recording and analyzing the company’s financial data. They use these data to carry out tasks including asset management, budgeting, performance evaluation and cost management. They are also often involved in budgeting for the release of new products and preparing financial data for investors and tax authorities. Furthermore, management accountants look at both past and present data in order to plan for the future.
Accountants in governmental accounting perform public accounting duties for government agencies to make sure revenues and expenditures are carried out with regards to the law. These accountants are involved in budgeting and government asset management.
Accountants under internal auditing review their company or firm’s financial management practices, checking for mismanagements, fraud and waste. They evaluate the company’s budgeting and management systems and operations for efficiency of performance with regards to laws and regulations. Furthermore, internal auditing accountants may specialize in areas such as information technology auditing, compliance auditing and environmental auditing.
Different Types of Accounting Services
There are many different services along with the different types of accounting. Some of the most common being:
Bookkeepers may be considered as an entry-level position into the world of accounting according to Business.com.au. They often do basic tasks for small to medium businesses to ensure the accuracy of accounts where they will work closely with an accountant.
Bookkeepers may update financial systems using financial accounting software or record hardcopy financial information. Furthermore, accounts payable and receivable are commonly monitored by bookkeepers.
A chartered accountant is a member of a professional accounting body. Chartered accountants are often skilled in a number of areas from management to auditing. Also, they can focus on a particular specialization within the accounting field.
As per its title, tax accountants specialize in the field of income tax for individuals and the various tax requirements placed on businesses. They are experts when it comes to claims and how to avoid paying tax unnecessarily. They can also assist with tax issues.
Financial controllers manage various functions of the businesses; from assigning work, dealing with new clients and overseeing staff. In other words, they are the head of accounting departments. Furthermore, controllers may also perform various internal and external auditing tasks to ensure quality and efficiency of accounting works.
Forensic accountants are those who are involved in tracking missing funds and other discrepancies that may appear in the course of accounting or through financial reports. These accountants may work with companies or individuals that have allegedly committed crimes such as fraud or tax evasion. In other words, these accountants are like lawyers as they may have a background or knowledge about law. So with that said, forensic accountants are often required to work with law enforcement agents.
Auditors are involved in checking financial reports and statements to ensure the accuracy and validity of statements. Often times, auditing involves tracking down past records and receipts. Furthermore, auditing allows in-depth financial information about the state of businesses.
The complex nature of the financial industry today, means that many accountants have become specialized and focused on a certain area. This is why it is important to get to know the different variations of types of accounting and its services before you hire or get into this field.