Are you considering studying towards a qualification in accounting? Are you looking at the ICB Financial Accounting course programme and wondering what makes financial accounting different from any other accounting? It turns out that there is a wide variety of different types of accounting you can do. The differences include things like laws they follow and way of doing the actual accounting. Lets take a look at some of the different types of accounting.
Financial accounting is the field of accounting that deals with the summary, analysis, and reporting of financial transactions related to a business. Financial accountants prepare the financial statements for public use, such as for stakeholders in the business. There are also the International Financial Reporting Standards (IFRS) that is a set of accounting standards that state how particular types of transactions and other events should be reported in financial statements.
Management accounting use the provisions of accounting information in order to inform themselves before making decisions on matters in their businesses. This is a way of helping their management.
Public Sector Accounting
Public sector accounting is the practise of recording and management of all the finances in government departments. This includes all the money coming in and going out. They follow other standards and practices than private sector accounting. Their practices include how to look out for fraud and corruption.
This is the type of accounting used when an accountant is needed when there are specific disputes or litigation going on. This type of accounting is suitable to be used in the court. There is a certain high standard to be uphold. They often give expert statements in court. They often specialise in certain fields such as only working on insurance claims, money laundering cases, or audits.
Auditing is the systematic and independent examination of people or companies’ books, accounts, and records. They determine if the records present a fair view and if there is cause for concern. They go through the books to look for faults and see if there was money laundered for example, or tax evaded.
This refers to an accountant that is qualified to take on a number of specific activities within the field of accounting. They are allowed to audit, do tax returns, and financial advising.
Bookkeeping is the entry level form of accounting. This is the most simple accounting job type. This is a person who has the job of keeping records of a company’s financial records. They also do the books and ensure that the expenses match what left the company or that they income and expenses match. They record everything from sales, purchases, payroll, collections of accounts, bills, and petty cash.
This is the type of accounting that only has to do with everything tax related. This includes doing tax returns, calculating how much tax needs to be paid, or even ensuring that all the taxes are paid.
There are plenty more types of accounting. This can make it tough to choose a field to specialise in. All the fields differ with regards to how they do their job and what is expected of them. When choosing a field to specialise in it is good to first know a bit of each field and see which parts of accounting you are good in or what you find interesting or boring. This will help you to choose the field that is best for you.
If you are interested in accounting but did not even finish matric, don’t fret. You can check out the ICB Financial Accounting course. This course assumes no previous knowledge of accounting and you only need Grade 10 to start this course. Afterwards you can also progress further and get your accounting degree.
Written by: Maretha Lubbe
Last updated: April 18, 2019