Accounting
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.
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Financial accounting
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
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Managerial accounting
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.
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Cost 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
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Tax accounting
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