Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarising, analysing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarising a company's operations, financial position, and cash flows.
The statements created by financial accountants are useful for internal purposes, providing business executives with a clear snapshot of a company’s performance. Creditors who have loaned business money and tax authorities
The management accounting method is used by businesses to gain greater insights into a company’s operations. Since managerial accounting is strictly focused on providing accounting information for internal use, it doesn’t have to stick to the same strict GAAP guidelines as financial accounting.
Cost accounting is technically considered a subcategory of management accounting. It focuses specifically on a company’s cost of doing business. This is used explicitly for internal purposes, helping determine how to reduce costs and increase profit margins
When working with a business, a tax accountant’s primary aim is to ensure the entity is accurately calculating and reporting its tax liabilities. Proper tax preparation can help a company avoid errors on their tax paperwork