Accounting Branches

Branches of Accounting

Business organizations use different accounting branches' techniques before reporting its financial status.

Each branch is specialized in particular business financial activities. Some branches focused on cost, audit, and some on taxes e.t.c.

Here are eight (8) branches of Accounting

1. Financial Accounting
what is financial Accounting?

Financial Accounting is defined in 1996 by American Accounting Association (AAA) as the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of information

Financial Accounting practice is guided with set of principles called GAAP (Generally Accepted Accounting Principles).

It summarize financial data in income statement and balance sheet

2. Cost Accounting

Cost Accounting records, analyses and report the business cost incurred ( fixed and variable ) that are related to the production of a product.

Costing uses some techniques to ascertain each product with its appropriate cost and value.

3. Auditing Accounting

Auditing is the examination and evaluation of company's financial statements by other professional Accountants called Auditors.

After analysing and evaluating the financial statement, the auditors report their opinions about the statement.

4. Management Accounting

Managerial or Management Accounting is the analysing, measuring, interpreting and communicating financial information to the management. Management use such information to maximize wealth/profit and minimize cost/losses.

5. Tax Accounting

Tax Accounting or Taxation is concerned with tax information provided in the financial statement rather than general financial statement. The tax authorities use the information to calculate and examine the business' income tax.

6. Forensic Accounting

This Accounting is also known as legal Accounting.

It involves deep investigation on the management financial activities/ information if there is disputes and mismanagement in the organization.

7. Fudiciary Accounting

Fudiciary is a person that is assigned with the responsibility of carrying out financial tasks on behalf of the principal.

The fudiciary record and maintain all financial transactions and issue the reports on periodic.

The Fudiciary Accounting is the process of maintaining records of assets and liabilities of the trust and reporting the information.

8. Government Accounting

Government Accounting also known as Public Sector Accounting (PSA), is the process of recording, analyzing, summarizing, interpreting and communicating the financial statements and statistics of Government in aggregate and in details.

It is use to measure Government's revenue and expenses.