The Different Forms of Accounting
It is in accounting where data is being analyzed and interpreted. A lot of people may not realize it immediately but all businesses and everyone are using accounting in one way or another. In evaluating some financial information, a person may know or may not know that he or she is using accounting, especially in relaying information and results to other people. Accounting is a very important tool that is being used in any kind of business. For different kinds of businesses, there are also different kinds of accounting. The different forms of accounting will be discussed here.
The first form of accounting is the industrial or private accounting. Accounting activities in this form of accounting is only limited to just one firm. There is a private accountant that will provide one employer with his or her services and skills. The accountant would also receive his salary on a basis of employer-employee. He would be considered as a private accountant because of the accounting services that he will offer. There will also be an employer-employee relationship even if the employer has a public corporation.
Next is the public accounting. This refers to accounting services that are being presented to the public. This is done by the public accountant. As compared to private accounting, this form of accounting is referred to as being more professional. Accounting services, however, can be provided by the certified public Accountants ML3 and also the non certified public accountants.
Government accounting is also another form of accounting. This form of accounting is referring to the branch accounting or the unit accounting of any level of the government. The level may be state, federal or local. Governmental accounting is just the same as any method of conventional accounting. The system of double-entry accounting, ledgers and journals is being used by the methods of the governmental accounting as well as the conventional accounting. The main goal of government accounting units is that they can serve and not just to make profit. There are other control methods just like the special accounting funds that are being developed because it is not possible to use the profit motive in measuring the efficiency of government units. And just like any business entity, the government units are able to use both public and private accountant services.
Another form of accounting is the fiduciary accounting. This form lies entirely in the idea of trust. This form of accounting can be done by any person who is in a trust position, such as a trustee, executor or administrator. Click here to know more about this. The work of a fiduciary accountant is keeping the record and preparing the reports. All of these are being authorized under the authority of the court of law.