Subscribe Feed (RSS)Accounting is an indispensable tool in any business, may it be small or multi-national. Accounting is considered more as an art rather than science. it analyzes and interprets data. it may not be obvious to some, but every business and every individual uses accounting in some form. The term “accounting” covers many different types of accounting on the basis of the group or groups served. The following are the types of accounting.
Private or Industrial Accounting: This type of accounting refers to accounting activity that is limited only to a single firm. A private accountant provides his skills and services to a single employer and receives salary on an employer-employee basis.
Public Accounting: A public accountant offers his service to the general public. Usually, a practitioner-client relationship exists where the accountant is called as a public accountant. Public accounting is considered to be more professional than private accounting.
Governmental Accounting: Is an accounting activity for a branch or unit of government at any level, may it be federal, state, or local. Both the governmental and conventional accounting methods use the double-entry system of accounting and journals and ledgers. Governmental units can utilize the services of both private and public accountant.
Fiduciary Accounting: Trust is the notion in a fiduciary type of accounting. This type of accounting is performed by a trustee, administrator, executor, or anyone in a position of trust. His task is to keep the records and prepares the reports. This may be authorized by or under the jurisdiction of a court of law. The task of a fiduciary accountant is to seek out and control all property subject to the estate or trust.
National Income Accounting: This type of accounting the economic or social concept is used rather than the usual business entity concept. The national income accounting is responsible in providing the public an estimate of the nation’s annual purchasing power. The GNP or the gross national product refers to the total market value of all the goods and services produced by a country in a calendar year.
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