Branches of Accounting
Augmented level of business operations has made management purpose more difficult. This has given rise to particular branches in accounting. The key branches of accounting are Financial Accounting, Cost Accounting and Management Accounting.
Financial Accounting: Financial Accounting is based on a methodical system of recording transactions of any business according to the accounting principles. It is apprehensive with recording business transactions in the books of accounts in such a way that operating result of a exacting period and financial situation on a exacting date can be known.
Cost Accounting: Cost accounting deals with evaluating the cost of a product or service offered. It relates to collection, classification and ascertainment of the cost of production or job undertaken by the firm. The purpose of cost accounting is to facilitate the management in fixing the prices and controlling the cost of production.
Management Accounting: This branch of accounting provides information to management for improved management of the business. It relates to the use of accounting data collected with the help of financial accounting and cost accounting for the reason of policy formulation, planning, control and decision making by the management.
Besides these, there are also numerous other branches which are in perform and very helpful for diverse purposes as mentioned below: Auditing, Tax Accounting, Fund Accounting, Government Accounting, Forensic Accounting, Fiduciary Accounting etc.
