Sub Fields of Accounting, Types or branches of accounting. Accounting is a system meant for determining service activities, processing of information into reports and making the findings readily available to decision-makers. The documents, which interact these findings about the efficiency of an organisation in financial terms, are called monetary declarations.
Find Whatever you would like to know about Sub fields of Accounting like– what is Financial accounting, Details for Management accounting, Details for Expense accounting, Details for Human Resource accounting, Information for Social obligation accounting and so on. Recently we supply many Articles on Accounting like– What is Book Keeping and a comparison with Accounting, What is an Account & Kind Of Accounts– Total Information and so on. Now you can scroll down below and check total details regarding ” Sub Fields of Accounting”
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Sub Fields of Accounting
( 1) Monetary accounting:
Monetary accounting consist of preparation and presentation of financial statements with actual interpretation. Since in monetary accounting we record and sum up the transactions which had currently been taken place.
The primary function of financial accounting is to create monetary statements and reports to depict the real monetary position of the entity. It assists in taking sound monetary choices.
( 2) Management accounting:
The main difference in between financial accounting and management accounting is that the financial accounting focuses on reporting to the stakeholders outside the company where as management accounting is for reporting to the Internal management. In easy management accounting combines accounting, finance and management so as to carry on the supervisory operations successfully.
( 3) Expense accounting:
As per The institute of expense and management accountants of england cost accounting is” the procedure of accounting for cost which starts with the recording of earnings and expense or the bases on which they are determined and ends with preparation of periodical Declarations and reports for determining and controlling costs “. Cost accounting include numerous methods to identify the cost per system of the entity and it has a substantial role in helping the management in making the decisions related to cost ascertainment and cost control. The main difference in between monetary accounting and cost accounting is expense accounting is the outcomes of financial accounting is utilized by outsiders whereas the outcomes of expense accounting are utilized by management.
( 4) Personnel accounting:
It primarily focuses on determining the expenses that are being sustained on human resources and the value of output the entity is obtaining from them.In service sector significant concern is Human Resource. HR accounting assists these organizations in effective management of Human Resource by providing the reports required for the wise HR decision making.
( 5) Social obligation accounting:
Socially obligation accounting explains various techniques to determine the social cost incurred by enterprise’s activities along side of establishing the social advantages produced.
Based On Information Systems Audit and Control Association (ISACA), “Social accounting aims to assess theimpact of an organisation or company on people-both the internal and external participant environments.” It helps the stakeholders to understand the effect of company’s activities on society & environment.