For a business to be successful, proper financial records should be kept. Accounting is the proper way of keeping a record of the financial matters relating to a company. Here companies gather, record and analyze information regarding financial matters. This should provide the light for detailed information regarding the company and its maturation. This is also an easy way of finding out a company's blooming. Decisions can be made on where to improve, to help in the company's growth.
Accounts in accounting means 'counting' and it means keeping a record of anything starting from persons, institutions, liabilities, income to assets and expenditures. It is an art of keeping track of money related events. Accounting is also called as "Business Language". With the change in technology, accounting has also changed. Instead of doing it manually it is done mechanically.
To develop one’s company the investors and managers need to check on the different accounting strategies of the company. For small businesses, it will be difficult to start new strategies for their company. Accounting is done by the companies to keep track of the money related matters or monetary transactions. Auditing is a part of accounting, Auditing begins where accounting ends. In auditing, the verification and evaluation of the financial statement are done.
With the change in technology, accounting techniques have also changed based on industrial, economic and technological developments. The different types of Accounting are:
- Forensic accounting.
It covers areas related to legal matters. It helps to find fraud investigation and other court-related cases.
- Financial accounting
In financial accounting, transactions related to business are done by recording and classifying them in an orderly manner.
- Cost accounting
It comes under management accounting and is mainly related to manufacturing costs, where they are recorded, classified and analyzed.
Tax accounting is based on tax-related matters. It includes planning based on tax and tax returns.
It can be divided into external and internal auditing. In external auditing, an auditor makes sure that the company has a fair and true record of all its material aspects, based on its financial position. An internal auditor makes sure that the company is under proper governance and control.
- Managerial accounting
It is mainly meant for managerial purposes rather than basic accounting principles. It is based on the budget and financial control and also on the cost evaluation.
Those who want to build their careers, accounting is a sure field. The demand for accounting is increasing day by day. These opportunities will gain you globally recognized certifications.