Accounting has become the backbone of economic events in the world because it classifies, categorizes and records accounting and financial operations according to a set of rules and laws through which an individual can reach his financial and economic goals. The American Accounting Association defines accounting as a process consisting of three Activities: To identify, measure, record and communicate financial and economic data and information expressed in the Monetary Unit, related to economic units, to be presented to users interested in such data and information. Their number in making decisions, in this article explain the types of accounting.
Types of Accounting
Accounting is one of the most important and important topics in accounting, because it deals with many accounting issues. For this reason, specialized accounting types have emerged in some fields. These include accounting, financial and administrative accounting, costs, taxes,
Financial accounting is the first type of accounting, financial accounting used a series of accounting principles in force, the selection of accounting principles to be used in the context of financial accounting is based on the regulatory requirements and reporting requirements faced by the business, and for US public companies, companies must conduct financial accounting In accordance with generally accepted accounting principles (GAAP), and international public corporations often report financial statements in accordance with International Financial Reporting Standards, and the establishment of these accounting principles is .Malomat consistent for investors, creditors, regulators and tax authorities
Although the published financial statements are the most prevalent are the products of business accounting systems and those of interest to the public in general, they represent only a small part of all accounting activities that support the institution, and most accounting data is created and most accounting reports only or mainly for managers The company's management reports are either summaries of past events, future projections or a combination of the two, the preparation of these data and reports is the focus of management accounting, which consists mainly of four broad functions: budget planning, cost finding, Managerial Accounting can be defined as: the process of collection and processing of financial and non-financial statements in accordance with the specific methods and rules for access to information serve different departments in establishing access to its objectives and the implementation of various functions
The cost accounting system is used by manufacturers to record production activities using a permanent inventory system. In other words, it is an accounting system designed for manufacturers that constantly tracks inventory flow through different production stages. The standard cost accounting system operates by tracking raw materials as they pass production It gradually turns into finished goods in real time, when raw materials are put into production, and the system immediately records the use of materials by calculating the raw material account and deducting the goods in the process calculation. As most products go through many stages before being called the Finished goods are manufactured, often there are many different works in the accounts of operations
Tax accounting is a structure of taxation-focused accounting methods rather than the appearance of public financial statements, subject to tax accounting for revenue law, which sets out the specific rules that companies and individuals must follow when preparing tax returns, tax accounting is the means of accounting for tax purposes, applies to everyone ; Individuals, corporations, institutions and other entities, even those who are exempt from paying taxes must participate in tax accounting; the purpose of tax accounting is to be able to track funds as well as externally related funds The tax accounting focuses solely on such elements as income, tax credits, gains or losses of investment, other transactions that affect the individual tax burden, and this limits the amount of information necessary for an individual to manage the annual tax return While a tax accountant can be used by an individual, it is not a legal requirement. At the same time, general accounting includes tracking all funds received and out of the possession of persons regardless of purpose, including personal expenses that have no tax effects
The Fund's account is used for nonprofits, including governments and non-profit organizations, rather than profit-seeking. Governments and non-profit organizations distribute resources to achieve their objectives. Common practices distinguish between the General Fund and special purpose funds. Paying employees or buying items, special funds are created to fund specific goals, such as building a new ward in the hospital.
The separation of resources in this way helps the non-profit organization maintain its control over its resources and measure its success in achieving its various tasks. While non-profit organizations do not seek financial gain, accurate accounting information is necessary to ensure that financial resources are managed properly, Cash deficit, and this type of accounting falls under the name of government accounting.
The difference between financial and administrative accounting
The main difference between management financial accounting is that financial accounting aims to provide information to parties outside the organization, while management accounting information aims to help managers within the organization to make decisions. The preparation of the financial statement using accounting principles is most suitable for regulatory organizations and financial institutions, since there are many accounting rules that do not translate well into the management of business processes, and different accounting rules and procedures are used by internal management to analyze internal business.
What are the types of accounting?
– Financial Accounting
– accounting administration
– Cost accounting
– Tax Accounting
– Fund Accounting
Mention the difference between financial and managerial accounting?
- Financial accounting aims to provide information to parties outside the organization
- Management accounting aims to help managers within the organization to make decisions.
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