The accounting process forms a key element in determining the success and failure of a business. When doing business in accordance with best practices, owners tend to adhere to certain types of accounting to ensure continual prosperity and success in their businesses.
For management accounting, its function is to check the mark, quantity and apprehension of the products being manufactured. It also keeps an eye on the transactions made to and from the company and keeping records for the balance sheets made at the end of each fiscal year. Dealing with workforce payments is also a task included in management accounting.
Public accounting involves issues of tax collection and tariffs along with insurance issues like premiums and payments etc. This type of accounting deals with bringing out the profit and financial management policies of a company in the open. This includes decision makers like investors, taxation authorities and managers etc.
Government accounting deals with the maintenance of expense records. The expenses and savings made by the government will determine its ability to spend on the public. If there are enough savings deposited in the government’s reserve, prosperity shall rise as more facilities will be available for the people. But if the reserve is low on cash due to extra spending on unnecessary statute structures, then people might have to resort to the thought that they won’t be getting their wages or salaries on time.
When it comes to businesses of all sizes, internal auditing is a very sensitive matter. As it deals with the private accounts of a company’s owner along with the accounts of the workforce, a thorough examining is required. Internal auditing helps clear any follies associated with the company’s account prior to being investigated by other auditing organizations hired by third parties or the government.
In this section we will discuss: