There are different types of business accounting based on the area of specialization in the field of accounting. The art of analyzing data and interpretation of financial data for various uses is referred to accounting. Different types of business accounting are covered by accounting depending on the type of business it serves and how it is used. It is possible for an individual to generally became an accountant but later specialize in different types of business accounting. The various types of business accounting are private or industrial accounting, public accounting, government accounting, fiduciary accounting, national accounting, and national income accounting among others.
Private or Industrial Accounting
Private or Industrial accounting is a type of business accounting that is used by single private firms. The private firms employ private accountants with the skills of single firm accounting. The performance level of the business is increased by the accounting skills applied in the single firms. The skills also help the private firms to access the way of maximum profit. General accounting knowledge is important to a person who works for this type of business accounting.
Public accounting is one of the types of business accounting that is offered by public accountants to the general public. The practitioner-client relationship is an example of this type of accounting. Public accounting is considered to be more professional compare to private or industrial accounting. Public accounting services can be provided by both certified and non certified public accountant. Single practitioner can be a certified accountant. Local, national and international clientele can be included in this accounting firm.
Accounting services are needed in different units or departments of the government. Some of the government departments that require accounting services include the state, the local government and the federal government. Only fund control services are needed in this type of business accounting. This is simply because government department are non-profit marking departments. Just as any other business entity, governmental unit can use the service of both the private and the public accountant.
Among other types of business accounting, fiduciary accounting one of the types that is practiced by executors, trustees, and administrator and other business transactions that require trust. Record keeping and preparation of financial reports is the responsibility of fiduciary accountant as demanded by the court of law. All the properties subjected to the estate or trust should be controlled by the fiduciary accountant.
National Income Accounting
National income accounting is a type of business accounting that uses the social and economic concepts rather than concepts of business. The estimation of the annual national purchasing power is the responsibility of the national income accounting. The total market value of all goods and services that are produced by a country are referred to gross national product (GPN).
Generally, an accountant is required to have some general accounting skills in this types of business accounting. An accountant should also be able to prepare financial statements. Such financial statement include trial balance, the profit and loss account and the balance sheet.