| At the end of each fiscal year, what is the most | | | | owners make decisions relating to issues like |
| pressing matter on the minds of every earning | | | | budgeting or sales profitability. This is internally |
| man or woman? The dreaded filing of the tax | | | | reported accounting and is not used by external |
| return! What else? Every year millions upon millions | | | | users as mentioned above. |
| make an unavoidable appointment with a tax | | | | Tax accounting: |
| accountant and this doesn't stop here. | | | | This type of accounting applies to everyone |
| Corporations, big or small, government | | | | everywhere. Jurisdictional law requires that a tax |
| departments, even NGOs and small grocery | | | | return is filed for every financial entity (a person |
| stores need accounting services which are | | | | or small or big business) and this return is based |
| required by law and just part of the general | | | | on the accounting of expenses and income (for |
| concept of good practice in the world or money. | | | | instance) to calculate taxable income. |
| Becoming an accountant can help not only earn a | | | | Accounting scholarship: |
| lot of money, an online accounting certification or | | | | This is the academic discipline of accounting and |
| short course can get you a career opportunity | | | | addresses the formulation and analysis of |
| with large organizations or simply help you do the | | | | accounting theory and principles. This form is |
| taxes for yourself, your family or friends and | | | | usually a teaching related area. |
| even your own business. | | | | Financial auditing: |
| Areas and types of accounting: | | | | The audit of financial statements (or the review |
| The most well known type of accounting in use | | | | of financial statements) is called financial auditing. |
| are tax and financial accounting, things we | | | | This is done by external auditors - experts in |
| encounter in our everyday lives while paying | | | | accounting - who review the financial reports of a |
| taxes and budgeting our monthly income to buy | | | | company and certify that these statements are |
| food and pay bills and rent etc. On a professional | | | | relevant, accurate and complete, fairly presented |
| level, accounting is the reporting of financial | | | | and are constructed by following the standards |
| information about a person or company (any | | | | required by the SEC and the users of this |
| business entity that makes an investment and | | | | information. |
| reaps a profit or loss return). This information is | | | | Financial auditing is the most diverse and lucrative |
| used by any interested party to access the | | | | area in accounting; learning to become an auditor |
| health of the business entity. | | | | takes practice and a high level of education. |
| Financial accounting: | | | | References: |
| The collection and reporting of financial information | | | | Wikipedia |
| to users outside of the company (like banks, | | | | Resource Area: |
| investors of the SEC etc) is called financial | | | | DISCLAIMER: Above is a GENERAL OVERVIEW |
| accounting and this takes place at the corporate | | | | and may or may not reflect specific practices, |
| level. Legal requirements and financial market | | | | courses and/or services associated with ANY |
| requirements (as well as conventions of good | | | | ONE particular school(s) that is or is not |
| practice) require that businesses perform financial | | | | advertised on |
| reporting, at least once every year. A profit of | | | | Copyright 2009 - All rights reserved by Media |
| loss statement, balance sheet and cash flow | | | | Positive Communications, Inc. |
| statement are all included in this type of reporting. | | | | Notice: Publishers are free to use this article on an |
| Management accounting: | | | | ezine or website provided the article is reprinted in |
| Management accounting is the internal form of | | | | its entirety, including copyright and disclaimer, and |
| accounting which helps managers and business | | | | ALL links remain intact and active. |