Mainly, there are two types of accounting : financial accounting and management accounting.
Management or clerical accountants work internally to provide financial information. For example, they often provide administrative information to help companies make decisions, guided by accounting systems and practices.
A management accountant can get involved in performing different tasks such as budget analysis , financial planning, and forecasting . The emphasis of management accounting is on long-term planning: that is, achieving financial goals and planning finances based on budgets.
Financial accountants: Accounting types
Financial accountants provide information to outside bodies , such as shareholders, investors, and creditors.
Financial accountants focus more on summarizing the current financial situation of a company or providing very important information such as profitability, liquidity, solvency and stability of a company. Unlike management accounting, financial accounting is a legal requirement.
Many graduates entering management careers tend to start to enter the job market through financial accounting , primarily by working in public agencies.
Of course, responsibilities within this area depend on the area of accounting you specialize in, but may include, but are not limited to:
• Audit , guarantee and advice
• Recovery and insolvency of companies
• Corporate finance and risk management
• Forensic accounting