6 Specialised Fields and Areas of Accounting You Should Learn About

Posted by Casey Floyd on February 9th, 2018

Accounting is the process of managing financial records and estimates which utilises the information to make significant financial choices. It is an art of handling and recording all business transactions and communicating the result to the top level management so that they can take better business decisions. The concepts of this subject relies on auditing, bookkeeping, and accounting principles. It helps in setting up a business and is important to different groups of people such as stakeholders, business owners, managers and others. It is much more than the cliché image of Accountants and Accountancy. The accounting assignment help experts have listed down a few important field of Accountancy which will help students to get more comprehensive knowledge of this subject. Let’s go through each point one by one!
 
Managerial Accounting
Management Accounting is a practice that offers information and analysis to decision makers inside the company such as owners and managers to assist them to operate the business. It plays a vital role in helping management to carry out certain responsibilities and gathering the financial information and preparing reports for firm’s executives or management.
 
Financial Accounting
Financial Accounting is a field that gives information to individuals outside the organisation including investors, creditors, suppliers, government agencies, employees as well as internal managers to help them assess the financial performance of the company. It deals with classifying, recording, reporting and interpreting of firm’s financial returns to the targeted users or stakeholders.
 
Budgeting Accounting
Budgetary Accounting is a discipline of accounting and its primary purpose is to control expenditures of the organisation and look forward to future values. It measures the cost of planned investments and work of economic resources in the future. It includes calculation of future sales and cash collections.
 
Cost Accounting
Cost Accounting is a method of accounting that captures and calculates manufacturing or production costs for company’s internal use. The reports prepared in this field are helpful for management; as they utilise them in budgeting and costing which can enhance the future net margins or profits of the organisation. Examples of cost accounting involve marginal costing, activity-based accounting, cost-volume-profit analysis, standard cost accounting, etc.
 
Tax Accounting
Tax Accounting is a field of accounting where accountants concentrate in preparing and filing of required tax returns of a business levied by government and tax planning for future taxable years. It also involves knowledge of tax amendments and calculation of tax consequences related to any business.
 
Human Resource Accounting
Human Resource Accounting is the procedure of assigning, budgeting, identifying and reporting the costs of human resources in a company involving wages, salaries and training expenses. It is the activity of knowing the value invested for employees in their recruitment, training, salaries and other benefits, and in return checking their contribution in the business toward achieving goals and profits.
 
A student pursuing career in the accounting profession can choose a suitable field to specialize in. A wide variety of the professions makes it simpler for an accountant to find the right job. Adeptness in a particular area of accounting can also help you to set up a promising and fulfilling accounting business or occupation.