Accounting always helps in industrial, technological, economic developments. It is classified into 5 special branches. They are financial accounting, managerial accounting, cost accounting, auditing and tax accounting. Accounting companies in Hobart offer these types of services.
Financial accounting is one of the special branches of accounting that helps to track or record of an organisation's financial transactions. This accounting can involve classifying and recording all kinds of business transactions, presenting and preparing the financial statements. With the help of financial accounting, the transactions are safely summarized, recorded & presented in a financial statement of a financial report or income statement.
Managerial Accounting
Managerial accounting is another special branch of accounting. This is also known as management accounting that can always focus on providing major information for use by the management and users. This accounting branch can deal with the requirements of management rather than compliance with the accepted principles of accounting. Management accounting may involve budgeting, financial analysis, forecasting, business decisions, cost analysis, and other areas.
Cost accounting is a subset of managerial accounting. This branch of accounting generally refers to presentation, analysis, recording, allocating, aggregating of the manufacturing costs. Cost accounting is very essential in manufacturing industries because these businesses have a complicated process of costing. Cost accounting is generally classified into 8 different types. They include activity-based costing, environmental accounting, project accounting, resource consumption accounting or RCA, standard cost accounting, target costing, throughput accounting and life cycle accounting.
Auditing is one of the parts of accounting. It generally refers to the financial statements accounting. Auditing is also a financial record which is independently undertaken. This is generally classified into 2 different types. They include internal auditing and external auditing. Internal auditing always focuses on the financial statements and the internal auditing mostly focuses on the adequacy evaluation of organisation's internal structure by examining the segregation of policies, procedures, duties, authorization degrees and many other controls that are implemented by the management.
Last but not least, tax accounting is a branch of accounting that includes preparation & planning tax returns. Tax accounting can also involve the income tax and all other taxes. The tax accountants always track kinds of transactions that can affect of tax paying and tax returns.
Accounting professionals always help individuals and organisations by providing taxation and business advisory services. Many business advising companies offer all types of accounting services including auditing, business consulting, self-managed superannuation etc.
