All you need to know about accountancy

All you need to know about accountancy

What is accounting?

Accounting is essential for any business, big or small. Accountancy is the recording and upkeep of any financial transactions with the ability to retrieve and summarise at any needed point. Three main things to remember about accounting are assets (items that are owned and are worth a value), liabilities (what is owed) and owner’s equity (amount of money invested).  An accountant has the ability to advise on any taxation matters and questions associated with finance.

The purpose of accounting is to create financial statements through the collection of expenses and income of the business or person – this allows classifying of their expenses. Without any record of where money is coming in or out of a business, there is no chance of being economically successful.

The weird and wonderful ways of accounting

There are many types of accounting and different ways of undergoing accountancy,

the first one being Public Accounting – many accountants who work within this field issue tax advice to the client. If it was based on a larger company rather than one individual, the accountant would help advice on business decisions.

Management accountants work alongside big corporations to maintain financial records and create financial statements. Management accountants can also advise and help with budgeting.

Accountants that are employed by the Government or by a company with federal regulations, they are known as Government accountants – the tasks are very similar to management accountants with budgeting and the recording of finances.

 

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