Accounting, best one means of assessment evaluation and control

Accounting, best one means of assessment evaluation and control

Keeping records of what we get and what we spend is accounting. Keeping records of household expenses and even time table is also accounting. Accounting is best one means and assessment, evaluation and control. Accounting is basic need of every business house whether it is corporate or a small shop. Accounting has many branches. One accounting method is not suitable in all situations. Different types of accounting can cater the needs of its users. Accounting is also a graceful and dynamic profession

Types of accounting

Financial Accounting:- Financial accounting is must for every house to know the result of working for specific period. Financial accounting is process of producing information for out siders, like financial institutions, government and tax authorities. Financial Statements is prepared on the basis of rules of guidelines of specific country. These are vary from country to country.

Management Accounting:- Management accounting produces information primarily for use of management. Management accounting served more detail information than financial accounting. Informations produced by management accounting are helpful in effective management and control of organization's affairs. These informations are also helpful in making decision and policies. Form and contents of management accounting reports is decided by management.

Cost accounting:- Cost accounting is helpful in deciding and controlling cost of products. Cost accounting is part of management accounting. In some countries cost audit is compulsory, so maintaining cost records is also compulsory.

Governmental Accounting;- Government accounting is accounting system which is used by public sectors. The objects and goals of public sector undertakings are different from private sector undertakings. Accounting system of government or public organization are little bit differ from private sectors organizations. Government accounting ensures the financial position and performance of public sector organizations. Separate rules and regulations followed for the accounting and events of public organizations.

Forensic Accounting:- Accounting, auditing and investigative techniques which are used in case of litigation of disputes is called forensic accounting. Reports and finding of forensic accounting is accepted as expert witnesses in courts of law both is civil and criminals disputes that require an assessment of the financial effects of a loss or the detection of a financial fraud. Common litigation where Forensic accountants are hired to decide suits of insurance claims, personal injury claims, suspected fraud and claims of professional negligence in a financial matter.

Tax Accounting:- Accounting system related to tax matter is called tax accounting. Tax accounting is governed be the tax rules which are prescribed by the tax law authorities. Often rules of tax accounting are different from financial accounting, which are prepared for public. Tax accountants therefore adjust financial reports according to tax law. These reports help to tax authorities in deciding tax liabilities.

Social Accounting:- Business world is also responsible for society and environment. Welfare of society is also object and goal of business houses. It is also called social responsibility. Process of reporting of any organization's activities on its ecological and social environment is called social accounting. Social accounting is in the form of environmental reports and these are annexed with annual reports of organizations. Social accounting is still in the early stage of development.