What are the Different Types of Accounting?

Accounting services are always going to be something that small (and even medium to large) business owners need to consider. When you reach a certain level of success, you’ll need other individuals to help handle the financial tracking of your endeavours. Failing to do so could result in loss of profit, and in the worst-case scenario, complete business closure. There are many different types of accounting services, but the type your business needs will depend on a variety of factors including industry and size.

The Four Main Accounting Types

Over the past few decades, accountancy has separated into different forms of accounting in order to provide options for the diversity of its users. The following are the four main types of accounting that your business will likely come across:

Public Accounting

Public accounting, also known as assurance services, is one of the main types of accounting that you need to understand as a business owner. Accountants in this area are experienced in the field of bookkeeping as well as financial analysis and account management. Public accountants can provide general advice to your company as well as prepare your taxes and offer solutions to your employee compensation plan. Some public accountants also ensure their clients’ statements are managed properly and that their financial records are audited. The main focus of a public accountant is to oversee financial data and spot errors wherever possible.

Management Accounting

Management accounting is one of the types of accounting services used to analyze your company’s data in its entirety. Management accountants use the data provided to them to work on asset management, typical budgeting and cost management. They are part of the budgeting talk behind new products, and they will prepare financial data for both tax authorities and investors. The main purpose of management accounting is to look at a company both in the past and present, making it a sought after form of accounting amongst most companies.

Internal Auditing

Accountants who handle internal auditing have a lot on their plates. They review the financial wellbeing of your business as well as its financial practices. Accountants in internal auditing can specialize in specific industries and areas, such as compliance auditing or environmental auditing. Internal auditing can allow you to improve upon your business practices by equipping you with the background knowledge you need about your company’s financial health.

Governmental Accounting

Governmental accountants aid the government with public accounting duties and ensure that governmental budgets are always being balanced. If your business isn’t part of a governmental institution, it’s unlikely you will seek this type of accounting for your company’s needs.

Businesses serious about turning a profit need to hire reliable accounting services. Contact NuVest Management Services to learn more about how outsourcing can help you with your accounting needs.