Many people already understand what accounting is and really need to be admitted that accounting is a broad science. For this reason, if you want to explore accounting, you must understand the various fields of accounting itself.
When viewed from the point of view of its function or use, accounting is a service activity that provides important information for assessing the company’s running. So that it allows the leadership of the company or parties outside the company to make considerations and make the right decisions.
When viewed from the point of view of its activities, accounting is a process that includes identification or determination, measurement and delivery of economic information.
Also Read: Accounting Information Systems in Companies
In practice, all financial transactions that occur within a certain period are processed in the following activity stages:
- Identifying ( identifying) and Measurement ( measuring ).
- Recording ( recording).
- The classification ( classification).
- Pengikhtisaran ( summarizing).
- Preparation of Financial Statements ( reporting).
Table of Contents
1 Areas of Accounting
1.1 1. Financial Accounting
1.2 2. Audit Accounting (Auditing)
1.3 3. Cost Accounting
1.4 4. Management Accounting
1.5 5. Tax Accounting
1.6 6. Budgeting
1.7 7. Governmental Accounting
1.8 8. Accounting System (Accounting System)
1.9 9. Budgetary Accounting
1.10 10. Banking Accounting
1.11 11. International Accounting
1.12 12. Accounting Education
1.13 13. Social Accounting
1.14 14. Public Sector Accounting
1.15 15. Behavioral Accounting
Accounting Fields
1. Financial Accounting ( Financial Accounting )
This field deals with the accounting of an economic unit as a whole. Financial accounting deals with financial reporting for parties outside the company. This successful report is general purpose . Its activities include recording financial activities which aim to be able to present financial reports. Financial statements which include balance sheets, income statements and statements of changes in capital or statements of retained earnings for a certain period of time. This financial report can be used by parties who need it as information for making rational and relevant decisions and policies.
2. Audit Accounting ( Auditing )
In accounting auditing , auditing is carried out on the results of financial records and reports. This field deals with audits that are independently carried out on reports produced by financial accounting. Although the main objective of auditing is to ensure that the accounting information presented is reliable, there are other purposes such as adherence to policies, procedures and assessing the efficiency and effectiveness of an activity. In this concept, what underlies the auditing is the objectivity and independence of the examiner as well as the confidentiality and collection of evidence which is quite relevant.
3. Cost Accounting ( Cost Accounting )
Cost accounting is a field of accounting that records and calculates and analyzes a cost data in an industrial company in an effort to determine the amount of the cost of production of an item or product. For this reason, with this cost accounting, price reports will be obtained to prepare financial reports. This area emphasizes an assignment and a control over costs. Cost accounting will lead to activity based costing . With the main function of collecting and analyzing data about costs, both costs that have occurred and those that will occur.
4. Management Accounting ( Management Accounting )
Management accounting is a field of accounting that aims to provide information to management in running its business. There are many things contained in cost accounting whose data are used by management accounting. So, even though these two fields of accounting have different objectives, their implementation can be done simultaneously. Some of the uses of management accounting are to control company activities, monitor cash flow and assess alternatives in making a decision. Control of the company through activity based management is a new trend in management accounting.
5. Tax Accounting
Tax accounting is accounting whose activities are related to the determination of tax objects to be borne by the company and its calculations for the purposes of preparing tax reports. Tax accounting activities serve to assist management in determining transaction choices that will occur related to tax considerations. Therefore, accounting who work in this field must know well about the applicable tax laws.
6. Peranggaran ( Budgeting )
Budgeting is a field of accounting that compiles a budget for both income and expenses. The budget is a guideline for companies, individuals or the government in carrying out their financial activities in the future. This field deals with the preparation of financial plans related to the company’s activities for a certain period in the future as well as its analysis and supervision. A budget can also be said to be a suggestion to describe the company’s goals, a budget containing a plan of activities to be implemented and the value for money in the future.
7. Government Accounting ( Governmental Accounting )
Government accounting is a field of financial accounting that is applied in government institutions. Government accounting aims to present a financial report, control and control state finances. Government accounting is expected to manage the state financial administration properly. This field specializes in the recording and reporting of transactions in government agencies.
8. Accounting System ( Accounting System )
The accounting system is a field of accounting that carries out activities by designing ways of keeping accounting records safe, effective and efficient. Starting from organizing documents to compiling recording procedures.
9. Accounting Budget ( budgetary accounting )
Budget accounting is accounting whose activities are related to the collection and processing of data on financial operations that have already occurred, as well as an estimate of the possibilities that will occur for the purpose of determining the company’s financial operation plan (budget) in a certain period.
10. Banking Accounting
Given the notion of accounting as the process of recording, classifying, analyzing and interpreting financial data. So in general, it can be seen that banking accounting is a bank accounting process which also includes recording, classifying, analyzing and interpreting bank financial data which is carried out systematically to meet the needs of interested parties both internally and externally.
11. International Accounting
International Accounting is a single standard accounting reporting that put pressure on the ratings ( revaluation ) professionals with the disclosures clear and transparent about the economic substance of the transaction, the explanation to reach certain conclusions. With regulatory accounting standards or rules that govern the preparation of financial statements. Meanwhile, the process of preparing or formulating accounting standards is called standard setting. There are several reasons why accounting standards are needed, including:
- Many countries penalties for non-compliance with accounting requirements tend to be weak and ineffective.
- Companies may voluntarily report more information than they should.
- Some countries allow companies to ignore accounting standards if the operations and financial position of the company are well presented.
This accounting standard setting generally involves a combination of private and public sector groups comprising the accounting profession. The role and influence of these groups in setting accounting standards varies from country to country.
12. Accounting Education
Educational accounting is a special field of accounting that leads to the field of education, namely in the learning and teaching activities of accounting or other aspects related to educational issues itself. The policy in the form of education decentralization is believed to be able to improve efficiency, relevance, equity and quality of education and fulfill the principles of justice and democratization. The results of the study indicate that there are several aspects in educational accounting, namely:
- School budget.
- School infrastructure facilities.
- School management.
- Parents’ participation.
- Accountability of operation.
To achieve the goal of decentralization of education, the government needs to restructure the provision of education, especially with regard to the structure of educational institutions. In line with that, the government needs to prepare a legal basis in the form of laws, government regulations and ministerial decrees to implement decentralization of education to suit the spirit and spirit of regional autonomy.
13. Social Accounting
Social accounting is accounting that handles the process of communicating the social and environmental impacts of the economic actions of a business entity for the benefit of certain groups of people and the wider community. The use of social accounting is for corporate social responsibility (c orporate social responsibility ) programs . This accounting is also called responsibility accounting. An example of social accounting is giving scholarships to the community.
14. Public Sector Accounting
Public sector accounting is public fund accounting, which can then be interpreted as a technical mechanism and accounting analysis applied to the management of public funds in high state institutions and departments under them.
15. Behavioral Accounting
Behavioral accounting is a science of accounting combined with social science. In other words, behavioral accounting is a science that studies the effects of human behavior so that it can influence accounting data and business decision making. Also on the contrary, how accounting can affect human behavior and business decision making.
