What is accounting and finance?
To understand the two you need to have a close look of the functionalities and technical application of the two. To start with, Accountants are people who perform accounting tasks for a company or an individual.
Accountants have a number of activities to perform like some of the accountants may deal with company’s financial statements while others may work closely with organization’s management matters related to budgets, analyzing the cost of the products, services, and operations. Some may work in auditing while others work as independent accountants like Certified Public Accountants (CPA’s), who carry out auditing for more than one company.
An accountant can be regarded as a primary figure as they are required in every business, whether it is a multinational, small firm or self-owned business.
What are the different types of Accounting?
Accountancy is a vast field; that keeps on evolving on day to day basis. For the last decade, accounting has expanded to include the following
A lot of people look at accounting as number crunching, something done by people who are ‘good at numbers’, they feel that it has nothing to do with them someone else can deal with that side of the business. There is often some amount of confusion when dealing with records and book-keeping.
But of course, Accounting is a lot wider issue than merely just books. ‘Accounting is a system in a business that shows in minute detail the total number of transactions that business has, detailing each aspect in the form of reports which are then in turn passed on to the people ultimately responsible for the running of the enterprise.’ Financial Statements are presented in the form of reports stating the exact financial position that an individual or organization.
The Services Accountants Provide:
First of all, they’re two basic types of accountant.
1. Private Accountants- These work for single organizations.
They carry out tasks such as cost accounting, making a budget, designing information procedures, carry out internal auditing, financial and managerial accounts.
2. Public Accountants – These accountants serve the general public.
These type of accountants carry out services such as tax accounting, business auditing and general management consulting. Thus, as small business owners the majority of their time would be taken up with the management and financial accounting of the business leaving little time to dedicate to the actual activity of the company – a big problem!
Finally to fully comprehend What is accounting and finance? Take a look at financial accounting which simply amalgamation of the two. Financial accounting is a source of information that people such as creditors and government tax organizations can use to see how the actual company is being run.
Management accounting gives the actual owner of the company information as to the situation of the business from an operations perspective. Enabling the owners of the business to see the manufacturing costs of production and compare it with the income generated thus coming up with proper statistics that can be worked on and bettered in the future.