What Are Different Types Of Accounting?

What Are Different Types Of Accounting?

There are different kinds of accounting. It is consistently under the change and adapting the latest technology that will help in becoming efficient and convenient. Today, we are going to share with you what are different types of accounting.

  1. Financial Accounting

Financial accounting is also known as financial reporting refers to the process of creating information that is being used externally in the form of financial statements. It includes a balance sheet, cash flow reports and so much more. Financial accounting also reflects the company’s past performance and current financial position.

Additionally, the financial accounting also performs the task of recording, briefing and creating reports for the numerous transactions that result from the business functions.

  1. Forensic Accounting

It refers to the curating of financial statements when a record of statements is not available or goes missing. In case litigations and other disputes, the experts of forensic accounting play a significant role in acting as a witness in the court when a situation like financial fraud is detected.

The forensic accountants are trained to look beyond numbers, terms and dig a little deeper into the reality of the business. Besides that, a forensic accountant also needs to set up visual support inside of the evidence.

  1. Cloud Accounting

All thanks to the technology, cloud accounting facility is available. Basically, cloud accounting is the latest invention in the field of accounting. If you have access to internet 24×7 and a smartphone, then you can check the data from any corner of the world.

Moreover, the data is stored on a remote server through which multiple networks can access it and work on it at the same time. Your work becomes easy, efficient, and reducing the human errors.

  1. Tax Accounting

Tax accounting is related for the tax matters. It is being governed by the tax rules laid down by the jurisdiction. Often these rules are a tad different from that of financial statements legalized for the public.

Each company and set people have to follow the rules whenever they are filing tax returns.

  1. Project Accounting

Project accounting is a crucial part of project management. It helps in tracking down the financial progress of a specific project by generating financial statements. The primary goal of project accounting is to attain financial success post the launch of a new product.

 

Categories: Finance

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