Branches of Accounting | Types

Different branches of accounting arose in response to the varied kinds of accounting information required by various classes of individuals. They may be owners, shareholders, management, suppliers, creditors, taxes authorities, and different government entities, among other things.Various Branches of Accounting

Financial Accounting

Financial accounting is a systematic technique of documenting company transactions in accordance with accounting principles. It is the first version of the accounting procedure. The main goal of financial accounting is to determine a company’s profit or loss over a certain period and to offer an accurate picture of the company’s financial condition as of a given date.

Cost Accounting

Cost accounting is concerned with determining the price of a product or service. It computes the cost by taking into account all variables that contribute to output production, including manufacturing and administrative costs. The goal of cost accounting is to assist management in setting pricing and controlling production costs.

Management Accounting

This discipline of accounting offers information to management in order for the company to be properly managed. It aids in the making of critical choices and the management of different company operations.

Auditing

Auditing is a discipline of accounting in which an external certified public accountant known as an Auditor inspects and verifies a company’s financial statements for correctness and consistency.

Tax Accounting

Tax Accounting deals with taxation matters. Its functions include the preparation and filing of various tax returns and dealing with their legal implications. Tax accountants aid in minimizing tax payments and also help financial accountants in preparing financials for tax reporting to various authorities.

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