Accounting types

As you well know, accounting is a very broad science, whose main objective is to collect, structure and make sense of all the movements that occur in a company. However, the company is a really broad entity, with a multitude of departments and processes. And this is accentuated as the company grows, where a multitude of products and services are produced and offered, it operates in a multitude of geographical spaces, etc. Therefore, transferring all this to economic terms in company accounting becomes very complicated and abstract.

 

Therefore, there are many kinds of accounting that exist. Choosing and relying on one of the accounting varieties will depend on many factors, such as: the origin of the resources, the activity of the company or the type of information that is worked on.

Accounting types
 According to its origin According to the activity   According to the information
 Public accounting  Industrial accounting  Financial Accounting
 Private accounting  Commercial accounting  Administrative accounting
 Extractive company accounting  Tax accounting
 Service accounting  Cost accounting
 Management accounting

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Accounting classes

It is important that you are clear about the classification of the types of accounting that exist, to record the data in the proper way in the accounting documents and to be able to make decisions in the most optimal way possible.

Accounting according to the origin of resources

Based on this classification, we find these two varieties of accounting :

  1. Public accounting. This is in charge of registering and structuring the operations carried out by all those public institutions, that is, those dependent on the State.
  2. Private accounting. For its part, private accounting controls all operations carried out by individuals, be they natural or legal persons.

Accounting according to the activity of the company

Depending on the type of activity of the company in question, this should adapt the accounting. The classification of the types of accounting according to the activity is as follows:

  1. Industrial accounting. A type of accounting to be applied in companies that transform raw materials into finished products.
  2. Commercial accounting. Control of the economic and financial movements generated in a company that is dedicated to buying and selling a specific finished product, prepared for direct consumption.
  3. Extractive company accounting. A specific accounting for those companies specialized in the exploitation of natural resources.
  4. Service accounting. Specialized accounting for those companies that are dedicated to the provision of services.

Accounting according to the type of information worked

Finally, and possibly the most popular classification of accounting types , is to break it down according to the type of information being analyzed and its structure. Thus, the accounting types are:

  1. Financial accounting . This type of accountingrecords information related to the financial status of the company, as its name indicates. Above all, intended for company managers and partners .
  2. Administrative accounting . This variety of accountingis highly focused on the most administrative aspects of the company, and is used above all to assess compliance with the established objectives and how to improve the implemented strategy . Very useful also to make forecasts and plan the actions and resources to use.
  3. Tax accounting . Regarding this type of accounting, it is used to record and prepare reports related to tax returns to the Treasury and the payment of taxes.
  4. Cost accounting . This accounting is rather focused on companies of an industrial nature, where they must make a detailed analysis of the unit costs of production, their sale and, in general, the production process  that the company carries out.
  5. Management accounting . It has a broader vision than cost accounting, since it records all the economic and financial information of the company to be able to make decisions. They usually offer information on short periods of time to analyze and decide.

As you can see, the accounting varieties that exist are quite a few. To take advantage of one or the other, you must analyze the activity of your company, the departments it owns and use that type of accounting on which you will be able to better match the economic movements you generate.

 

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