Types of Accounting

In Accounting there's only 3 types of accounting, why it should be matter for your business.

All 3 types of  Accounting have their own characteristics which help you in growth of your business. They have their different results or effect of recording in Books of Account. So now here are the 3 type so of Accounting.

1. Finance Accounting:  It's define as a process of recording, summarizing, organize and reporting of various transactions that occurs in during the course of the business.  The all financial transactions made by firm it's help us to create the financial statements of firms. Through the Financial  Statements High- Level management analyze and decided the firms goals, missions. In that financial statements their is all information about the Balance Sheet, Income Statements and Cash flow Statements. 


All Financial Accounting are prepared in accordance with Generally Accepted Accounting Principal (GAAP). but GAAP have established  some other boards like., Financial Accounting Standards Boards (FASB). They have also established the International Financial Reporting Standards (IFRS).

In this there 2 Different methods of recording the Transactions.

1). Accrual Basis.

2). Cash Basis.

2. Cost Accounting: Cost accounting is that the practice of determining the prices of manufacturing a product and reporting those costs to management to facilitate more informed deciding primarily about product pricing. accountancy usually is related to businesses that really manufacturer of a product. It's possible to assign costs to the output of service businesses also . After costs are determined, management can then assign product prices. Assigning costs lays the groundwork for determining product prices.


There are different elements of cost accounting like., Material Cost, Labor Cost and other Expenses.
From these cost some are direct or indirect.  There is also many types cost.
like., Fixed Cost, variable Cost, Semi Variable Cost.

3. Managerial Accounting: Managerial Accounting is known for identifying, measuring, analyzing, interpreting, and communication financial information to managers for the pursuit of an organization's goals. There scope is very vast and includes several business operations. like., Risk management, budgeting, planning, strategizing and decision making.


 
Managerial Accounting mainly focuses on making future project or goals of a company. Through the analyzing and recording financial transactions which can be used to increases its efficiency and productivity.

* All these 3 types of Account concept is necessary for running a proper business *
You can also visit my website : www.cpacb.com. or you can mail : client@cpacb.com.





Location: Texas, USA

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