The Basic Types of Accountancy Included into Accounting System

The main types of the accounting system.

As it is known that an accounting system is a complex series of calculations and balances that are used for managing the income, expenses, and other business financial activities. If at first, the accounting process was carried out manually, nowadays, it is difficult to find a company that doesn’t use fully automated, computer-based, and even internet-based accounting systems.

Before purchasing an accounting system which you will use to record financial transactions your business activities require, learn all requirements to your business activity and understand your business needs, make a search with the purpose of knowing which accounting systems are offered on the market and which features each system can provide you.

The basic accountancy types of the accounting system:

  • financial accounting is concerned with producing financial information for external use in the financial statements form;
  • managerial (management) accounting is concerned with producing financial information for internal use and includes cost accounting and target costing;
  • governmental (federal) accounting is concerned with creating and managing funds used to pay for expenditures related to services given by the government entities;
  • forensic accounting is concerned with the reconstruction of financial information in cases when a complete set of financial records is not available;
  • tax accounting is concerned with the compliance of tax regulations and tax-related matters;
  • social accounting concerned with reporting implications of the company's activities on the ecological and social environment;
  • project accounting is concerned with tracking of the project's financial progress;
  • environmental accounting is concerned with information about business decision and business operations;
  • inventory accounting is concerned with planning, tracking, and controlling inventory levels and inventory related activities;
  • industry-specific accounting is concerned with producing industry’s specific financial information;
  • not-for-profit (nonprofits) accounting is concerned with the producing financial information for non-profit companies such as universities, medical institutions, and government (federal/non-federal) contractors.
basic accountancy types

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