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Cost Accounting

Cost accounting is a method used in accounting to determine the total cost of production incurred by a company. It evaluates the variable costs of every activity and process of production and fixed costs like lease expenses. Cost accounting aids the internal management team in analyzing the financial performance of the company and also make critical decisions. The process involves measuring fixed and variable costs independently and then comparing the output results with the input costs.

Tax Accounting

Tax accounting encompasses a structure of accounting methods that are centered on taxes. The internal revenue code guides tax accounting by providing a set of rules that firms and people must follow when preparing their tax returns. As you already know, taxation applies to all entities including individuals, companies, and businesses. Even organizations or agencies that are exempted from tax are required to prepare tax books of accounts. The main aim of tax accounting is to help the government and other interested parties track funds that belong to specific entities and individuals.

Financial Accounting

Financial accounting is a type of accounting that focuses on documenting, summarizing, analyzing, and generating reports on a plethora of financial transactions carried out by the business over time. Financial statements like cash flow and profit & loss statements, balance sheets, and income reports are usually used to summarize these transactions. This type of accounting follows established principles determined by the reporting and regulatory requirements faced by the business.

Managerial accounting

Managerial accounting is a branch of accounting that is used to provide reliable financial information to managers. This type of accounting is important because it helps the owners of the business make critical financial decisions. It involves evaluating, identifying, interpreting, and reporting financial transactions to top decision-makers.

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