4 Main Types of Accounting You Need to Know

Accountants are responsible for providing financial reports, tracking business transactions, bookkeeping, and other financial management activities. The main reason why most small businesses need to get professional accounting services is to make it easier to monitor the updated cash flow, expenses, profits, and financial reports frequently.

If you want to pursue being an accountant or hire professionals, you need to know their different types and their functions. Moreover, there are four main types of accounting fields. You must know their differences first before you outsource accounting services for your business. To know more about this, continue reading the article until the last part of this page.

Public Accounting

The most comprehensive type of accounting services in which accountants specialize in providing financial statements, records, bookkeeping, financial analysis, and account management services. They also work closely in tax regulations and accounting system designs. Public accountants are responsible to maintain accurate filings and ensure statements are managed accordingly.

Management Accounting

This type of accounting involves analyzing the company’s collected financial data. It helps to gather information to create a budgeting plan, conduct performance evaluation, and provide precise cost and asset management. They are also responsible to organize financial reports for external reporting and local tax compliance.

Government Accounting

Compared to public and management accounting, its unique difference uses an accounting framework in which they manage funds, revenue, and expenditures. Government accountants who work with state, local, or federal government usually handle government asset management and creating a budget in a strictly vetted way. They are also responsible for keeping confidential information securely.

Forensic Accounting

The job description as a forensic accountant is they are in charge of recovering and reconstructing financial information. They are involved in investigating financial fraudulent records, mismanagement practices, and wastes. Additionally, forensic accountants monitor the business’ financial activity if they are in compliance with the law. They are usually worked with legal support, insurance companies, and other industry-related auditing firms.

Different types of professional accounting services

  • Tax accounting
  • Bookkeeping
  • Forensic accounting
  • Chartered accounting
  • Accounting audit
  • Financial controller services
  • Payroll processing
  • Account payable
  • Account receivables
  • Bank reconciliation

Read also: Accounting Firm: Top 4 Benefits of Having a Business Plan in your Market

Main Types of Accounting You Need to Know l Volcan Olmez on Unsplash

To summarize up

In overall similarities between public, management, government, and forensic accounting, they are all involved with the assessment of finances. The common qualities of professional accountants usually possess a comprehensive background in auditing, excellent mathematical knowledge, investigative skills, attention to detail, and strong problem-solving skills. They also have a broad understanding of tax regulations, accounting principles, and practices.

Moreover, having accounting and bookkeeping services for small businesses will help to make it easier to gather records and regularly monitor financial transactions. Accountants often provide business owners with clear and concise reports.

Professional accounting and bookkeeping services in Mississauga

Yousri Ahmed is a Canadian CPA with extensive experience in accounting fields, He continues his profession to work with small to large private or public businesses. He also helped different clients who specialize in real estate, manufacturers, retail, and construction. For business accounting and bookkeeping services in Toronto, contact YACA at 647-991-8381 or email us at yousri@yaca.ca to book their services.