Accounting 101: The Types

Accounting can be defined as the art to analyze and interpret data and figure. For some, they might not be aware that even for personal or business use, accounting is applied in some kind. A person is doing accounting without his knowledge when he analyze any financial data then he went on to relate it to others. Accounting is nonetheless a vital tool for any kind of business, big or small.

Accounting Types

The term accounting has different fields or types depending on the group or person that it are served. Below are the types of accounting.

  1. Industrial or Private Accounting. This refers to the accounting process that is only for a single firm. Because he is a private accountant it means that he imparts his expertise to only one employer. He got his wage based on employer-employee set up. It is called private as it is referring to the accountants in Medway and the service that they provide.
  2. Public Accounting. This is an accounting service given by the accountant to the public. If the relationship of practitioner exists, the accountant is called public accountant. This type of accounting is considered more professional when compared with private accounting. Certified or non certified public accountants can give his or her accountings services to the public. The range of these firms can be clientele from local, national or international.
  3. Government Accounting. This relates to accounting of any government branch in any level. It can be local, federal or state. This type is quite similar to the traditional method of accounting. The methods of conventional and government accounting made use of double entry system to be applied on accounting, ledgers and journals. This type aims to provide service rather than to earn money. Because the motive to profit is not utilized to measure the government unit efficiency, the other control measures were developed and used. The way to enhance the control process, the special funds accounting is put in to use. Just like any business entity, the governmental units can be used for the services of public and private accountant. Read more at
  4. Fiduciary Accounting. This type of accounting depends on the concept of trust. This is done by an administrator, trustee, executor or any person who is trusted. The job of the fiduciary accountant is to maintain records and report preparation. This can be allowed or through the court of law jurisdiction. The accountant needs to locate and take control of the property subject of the trust or estate. The proprietorship idea that is typical for the common kinds of accounting can be considered non-existent or altered in this type of accounting.

National Income Accounting. This type made use of the concept of social or economic set up to build the accounting as opposed to the typical idea of business entity. National income accounting takes charge of the giving the public an estimation for the yearly purchasing power of the nation. The Gross National Product or GNP is an associated term that is referring to the entire market value of the services and goods produced by the country in a specific time frame in a calendar year.

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