Published: 2018-01-15   Views: 1464
Author: Dheeraj
Published in: Accounting
Branches (or) Sub-Fields Of Accounting

TYPES OF ACCOUNTING OR SUB-FIELDS OF ACCOUNTING

The need of business along with the various technological, economical, industrial, financial, and other specialized fields are resulting in the necessity of different subfields of accounting. Nowadays accountants are trying to concentrate and specialize in one or more specific type of accounting and build their career over the chosen sub field. This division happened mainly to serve the diversity of users of various types of financial information. Therefore resulting in the existence of different types of accounting or sub fields which are as follows:-

  • Management Accounting

    management accounting This type of accounting exclusively deals with the internal environment of entity. Management accounting dealt with mainly analyzing and accumulating all the financial data to assist management to take various financial, operational, investment and other important decisions. Cost accounting and target accounting are also part of management accounting.

     

  • Financial Accounting

    Financial Accounting

    Preparation of financial statements as per required and applicable accounting framework with considering various Generally Accepted Accounting Principles and format (GAAP) or International Financial Reporting Standards (IFRS). Preparation of financial statements in a uniform and standardised format is so important for users to assess the performance of the business.

  • Internal Auditing

    Internal Auditing

    This type of accounting mainly deals with examination and assessing of internal procedures, control, operation and policies of day to day activities. It deals with assessing the effectiveness and efficiency of company’s systems and transaction. It aims at finding weakness, wastage, error, fraud, mismanagement and inefficiency.

  • Tax Accounting

    Tax Accounting

    Tax accounting mainly deals with managing tax provisions and liabilities. It ensures the compliance with various tax laws, regulations, acts, tax payments, tax filings and tax planning which helps the business to run smoothly without having much tax burdens.

  • Government Accounting

    This method of accounting deals with government and their funds. It manages the funds held by the government to be expended without any errors, bias or fraud, in an efficient and effective manner. This fund should be disbursed to pay for a number of expenditures in connection with government services and for the benefit of the public and the development of nation.

  • Accounting Information Systems

    It is the latest phase of technology which gives rise to a proper and systematic procedure of recording and maintaining day to day financial information. Accounting Information System (AIS) deals with the creation of a proper accounting system. It involves various phases such as developing, installing, implementing, managing and monitoring various accounting procedures and systems used throughout the process of accounting.

  • Fiduciary Accounting

    It is the process of accounting where a separate person other than the owner or the proprietor is entrusted to do various activities such as handling and managing of accounts along with the custody and management of the property. Receivership and estate accounting are some kind of fiduciary accounting. Trust accounting is also a common fiduciary accounting.

  • Forensic Accounting

    Forensic Accounting

    It is one of the fast growing and popular trend of accounting nowadays. Forensic accounting is sub field of accounting mainly dealing with the various laws, court procedures, litigations, cases, claims, disputes and fraud investigation. All the matters related to any legal affairs are treated under forensic accounting.

 

BENEFITS OF ACCOUNTING

  • Evidence of the past and present financial status
  • Helps out in intra and inter firm comparison
  • Records and maintains complete financial information
  • Assessing the growth of business and efficiency & effectiveness of management
  • Helps in ascertaining profit
  • Valuation of business and to decide various selling price
  • Act as evidence in the eyes of law and ensuring the compliance with various regulations
  • Assist the management in taking various decisions
  • Facilitating audit and calculation of tax liability
  • Better financial representation
  • To check whether any fraud or error exist
  • Assist in various investing and financing decisions
  • To cope with up to date technology
  • A proper accounting system results in cost benefit and saves time.

 

LIMITATIONS OF ACCOUNTING

  • Conflict within various accounting principles and policies
  • Issues in evaluating and ascertaining various estimates
  • Considerations of those items in financial statements which is difficult to be expressed in monetary terms
  • Deep laid frauds like the frauds that involve top management frauds
  • Incomplete and manipulated financial information results in wrong interpretation and gives out convey wrong messages
  • Professional judgement by accounting professional varies based on the various factors in financial statements
  • Use of historical cost
  • Time value of money
  • Cost of preparing or producing relevant and reliable information may result in compromising the quality of accounting information.

Article Comments

0 comments.

There are zero comments yet, why not be the first?

You must be logged in to post a comment.

Please log in or register to comment or reply to a comment.

Articles Search

Featured Articles

Most Popular Articles

Article Categories Expand

7  
1  
1  
1  
0  
6  
0  
53  
3  

There are zero sub-categories in this parent category.

49  
4  
6  
3  
3  
7  
4  
8  
3  
2  
1  
0  
0  
0  
26  
0  
0  
0  
1  
2  
8  
1  
1  
0  
1  
1  
0  
1  
1  
0  
0  
1  
4  
0  
3  
3  
0  
1  
25  
1  
0  
0  
1  
0  
0  
6  
0  
1  
29  
1  
0  
2  
0  
11  
0  
0  
0  
0  
3  
2  
0  
2  
2  
1  

There are zero sub-categories in this parent category.

3  
1  
2  
5  
0  
3  
2  
1  
0  
0  
1  
0  
1  
2  
0  
1  
0  
21  
0  

There are zero sub-categories in this parent category.

0  
1  
0  
0  
0  
0  
0  
1  
0  
0  
0  
2  
24  
17  
3  
1  
0  
0  
0  
0  
1  
1  
0  
0  
0  
0  
0  
1  
0  
0  
1  
3  
0  
0  
0  
0  
0  
0  
0  
1  
1  
0