What are the different branches of accounting?

The different branches of accounting are explained below −

Financial accounting

• Records daily transactions and gives the financial picture of business.
• Preparation of trial balances, profit and loss accounts and balance sheets.
• Creditors, financial institutions, banks, etc., use this type of accounts.

Cost accounting

• Record, present and do the analysis of manufacturing costs.
• With the help of this account, management can control the production cost and prices.
• Forecast by analysing actual cost to budget cost.

Management accounting

• Gives information about business administration.
• Budgeting, cost analysis, decision making.

Auditing

• Prepares tax reports using financial statements.
• External − Financial statements are scrutinized by external/independent parties.
• Internal − Focuses on the companies' internal structure.

Tax accounting

• Prepares and files various tax returns.
• Minimizes tax, tax reporting.
• Tax related decisions are implemented.

Fund accounting

• Records non-profit business funds.
• Different accounts are maintained for different sources.

Government accounting

• Records government and state government funds.
• Records utilisation of allocated funds.

Forensic accounting

• This is also called legal accounting.
• Settles the legal matters.
• Damage calculations are also conducted under this type of accounting.

Fiduciary accounting

• Third party handles accounts.
• Trust accounting, estate accounting, etc.