Familiarity with different types of accounting
All human beings have heard the word accountant or accountant at least once in their lifetime. But the question is, what is accounting?
Accounting is an information system that is used in all businesses.
What is accounting?
The importance of economic activity is not hidden from anyone. Given the wide range of trade and business, we need a system for providing information to develop social relationships and expand trade.
Accounting is a tool to show income, control of accounts, control of expenses and income, which today is called the common language of business. To master and manage capital, you need to learn this language or use skilled people in your business.
It can be said that accounting is a science that uses data related to the economic activities of firms to improve their performance.
Cash and accounts controls have been around for over 500 years. But today, the application of accounting has gone beyond these debates. The world’s economic systems make decisions based on accounting knowledge.
Accounting may seem simple, but this science is evolving day by day.
Types of accounting:
1) Financial accounting:
Financial accounting is the same as reporting accounting. The purpose of financial accounting is to prepare and prepare financial statements. Financial accounting, which is a new branch of accounting, with the growth and development of enterprises, led to the emergence of the stock market.
On the other hand, income tax is an important factor that balances the economy. For this reason, the government resorted to using the financial statements of firms and institutions regulated by the accountant.
To calculate the exact amount of income tax, you need to calculate the exact amount of profit.
Creating a financial statement requires accurate information about day-to-day transactions, which include buying and selling activities, purchasing raw materials, purchasing machinery, paying debts, and running costs such as salaries, rent, water prices, and more.
The main users of financial statements are the management of the institution, banks, capital market brokers, employees, sellers, employees, creditors, long-term and short-term creditors and investors.
2) Government accounting:
Government accounting, as its name implies, is an information system in the field of financial activities of government institutions.
Government accounting, which is one of the most important branches in the types of accounting , collects activity information with the aim of controlling government expenditures;
Because the government is obliged to prepare and prepare a summary of annual revenues and expenditures by preparing and preparing the financial statement and submit it to the parliament so that the parliament can determine the budget for the same year.
3) Management accounting:
Another type of accounting that originated in the early 19th century is management accounting. In fact, management accounting is a process that collects, sets up, processes, interprets and analyzes information to use its output for business planning and management.
Accountants in management accounting report on information such as production volume, cost of products, capacity of production resources, cost of products, and cost of products and services.
Management accounting looks to future information. In this branch of accounting, issues are modeled. The results of this accounting can be used for management.
Management accounting identifies and modifies how things work to control activities. In this type of accounting, the accountant predicts the goals and compares them with the performance in reality in order to identify the deviations created and to analyze them.
4) Industrial accounting:
Among the types of accounting , industrial accounting is one of the most widely used branches in accounting. The purpose of this accounting is to calculate the cost of products. Other applications of industrial accounting include the study of the manufacture of goods in order to reduce costs and correct pricing.
Investigating and forecasting production costs is one of the primary measures in the field of production and expansion of manufacturing companies; Because companies must have accurate statistics and information about the cost and cost of raw materials for production to be able to make accurate and rational decisions.
In short, it can be said that the main task of industrial accounting is to calculate the cost of all factors of production.
5) Tax accounting:
Mastering the complicated world of arithmetic and books requires familiarity with different types of accounting in order to prevent problems by gaining skills in this field.
One of the most important branches of accounting is tax accounting; Because it makes money and reduces accounting mistakes.
The purpose of tax accounting is to calculate corporate income tax and review tax laws. The issue of taxation is important in all countries. Also, in Iran, the government attaches great importance to taxation.
Taxes received from the people are used in the following areas:
- The cost of education
- Ensuring self-sufficiency in agriculture, science and industry
- Construction and development of communication and transportation routes
- Water supply, electricity, telecommunications, sanitation… at all levels
- Strengthen the defense force and manage the military forces and maintain territorial integrity
6) Store accounting:
Every store needs a detailed account and book. حساب This accounting includes commodity control, check registration, receipt archiving, account control..
Speed of operation and accuracy of accounts are very important in store management. All the actions of a store accountant should be such that the customer is not delayed in any way.
7) Human resource accounting:
In accounting types, the value of the goods is often taken into account. For this reason, there is a need for a system to determine and calculate the value of employee services. Human resource accounting addresses this need by measuring the true value of employee services.
Human resource accounting can be examined in the following two dimensions:
- The value of human resources.
- Human resource investment.
In manpower accounting, the costs of selecting, hiring, training, updating, and developing are calculated.
According to the American Accounting Association, “Human resource accounting is the process of identifying and measuring employee data and transmitting the information obtained to stakeholders.”
Human resource accounting is a new branch of accounting.
Conclusion:
Today, accounting does not end with the addition and subtraction of numbers. In today’s world, accounting includes bills and reports that can help develop the country’s economic base by improving investment.
Types of accounting play an important role in the success of small and large companies. An accounting system is essential for any business.
