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Accounting Support
Accounting is the measurement, processing, and exchange of financial information regarding economic organizations such as companies and enterprises. The term accounting is derived from the French term comptabilité and it is base “count.”
Different fields of accounting
Financial accounting, management accounting, external auditing, tax accounting, cost accounting, personal accounting (for private persons), and accounting systems are all subfields of accounting.
Quantitatively speaking, financial accounting comprises the vast bulk of accounting. The reporting of a company’s financial information following generally accepted accounting principles (GAAP) as provided by the country’s standard-setting organization, such as the Financial Accounting Standards Board and the Public Company Accounting Oversight Board in the United States.
- Management accounting:
Management accounting is a relatively new concept. It entails providing management accounting with up-to-date decision-making assistance, including information regarding product profitability, quality control, and other areas that help in decision-making.
- Accounting information systems:
Accounting information systems employ computer software to generate financial transaction reports and automate their recording. Systems may also conduct accounting tasks such as billing clients, managing spending, and maintaining personnel files.
- Tax accounting:
Tax accounting is the process of calculating the tax owing by individuals or corporations in compliance with the legislation of states that impose income taxes. Tax accounting is a subset of financial accounting that ensures compliance with state and federal laws, such as the Internal Revenue Code (IRC) and applicable state laws.
The generally recognized accounting rules for tax purposes control tax accounting (GAAP). In the majority of nations, taxes are imposed on net income; hence, taxes constitute the main application area for accounting.
Numerous firms are taxed on their revenue, capital, or both. They may be compelled to remit tax on any income for which they are liable, even if it is not cash, such as credit sales.
- External auditing:
External auditing gives consumers of a company’s financial information with independent confidence. The external auditor is often appointed by the shareholders’ general meeting, however other stakeholders might agree to have an external party act as auditor instead of an internal employee.
In many nations, taxpayers are compelled by law to have an independent audit performed to ensure that their tax return was accurately completed. Tax accounting is also fundamental to public sector auditing, which guarantees that tax revenues are correctly collected and accounted for, and (ii) tax dollars are spent following the law. Accountants in the UK
- Cost accounting:
Cost accounting is the process of finding, measuring, aggregating, and reporting the costs of any activity or process. Cost accounting is a subfield of accounting used to keep track of expenses for decision-making. The agreed-upon charges are then applied to tasks or goods to cover these expenses.
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