Accounting or Accountancy is the study of measurement and analysis of financial transactions and economic entities, that are initiated by businesses, firms, companies, or corporations.
Accounting is one of the important branches in the field of economics because it helps in maintaining the account balance of any business firms, companies, or corporations. It also helps in telling the exact amount of tax to be paid, such as Income Tax, Sales Tax, etc.
Moreover, accounting helps in analyzing the expenses made by an individual, aAcc firm, a company, or a corporation and helps in cutting off the unwanted expenses by checking where there is more money spent.
Types of Accounting
Accounting can be classified into various types and some of them are given below,
- Financial Accounting
- Management Accounting
- Tax Accounting
- Cost Accounting
All these accounting types are explained below.
Financial accounting primarily focuses on the report given to an organization’s financial information such as investors, potential investors, and creditors. It helps in calculating and recording the business transactions and prepares the financial statements for the external users according to the generally accepted accounting principles (GAAP).
Management marketing primarily focuses on the measurement, analysis, and reporting of the information that can help the managers to make decisions to fulfill the goals of any organization taken under consideration.
Tax Accounting focuses on the accounting done on the preparation, analysis, and presentation of the taxes paid by the companies to the respective authorities on time. Through this accounting, the companies can easily maintain the accounts of taxes paid to all government officials.
Where to learn Accounting
Accounting can be learned in schools, colleges, and online classes like “BYJUs, Khan Academy, aplia accounting answers, etc.” Especially, Aplia Accounting Answers specializes in this because it has more content related to accountancy.
To conclude, we can say that accounting is one of the important branches of economics, which totally deals with the maintaining of accounts of companies. Without maintaining proper accounts of your company would lead to the complete confusion of where your money goes. Moreover, without proper accounting, you cannot pay your taxes, check your bank balance, check for any amount credited or debited from your account, check how much money has been credited or debited in your account, and so on. Hence, proper accounting is a must when it comes to saving your money.