Financial accounting is a systematic way of recording transactions of any company according to accounting principles. The main goal of financial accounting is to calculate a company's profit or loss over a given period and provide a clear image of the company's financial position as on a particular date. A company's Trial Balances, Profit & Loss Accounts, and Balance Sheets are all based on financial accounting principles.
Cost Accounting: Cost accounting is concerned with determining the cost of a product or service offered. It evaluates the cost by taking into account all of the factors that contribute to the output production, including manufacturing and administrative costs. The goal of cost accounting is to assist management in fixing prices and controlling the cost of production.
Tax Accounting: Tax accounting is concerned with tax matters. Tax accounting includes the methods and policies used to prepare tax returns and other statements required for tax compliance, hence it provides frameworks and guidelines for calculating taxable profit. Tax accounting is a branch of accounting concerned with the preparation of tax returns and payments.. Its responsibilities include preparing and filing various tax returns, as well as dealing with their legal implications. There are various forms of Taxes,such as:
Income tax: Income tax is a type of tax imposed on all individuals who earn money through work or business. According to accounting assignment help experts, the rate of taxes is determined by the amount of income reported, with lower income groups being excluded from paying income tax. Individuals and businesses are needed to document annual income and pay a predetermined tax rate under this system of taxation.
Value Added Tax (VAT): VAT, or Value Added Tax, is a sort of tax levied by the government on the sale of products and services to customers. Value-added tax is a type of taxation that is based on consumption instead of income.It is imposed on a product at every step along the supply chain
Excise Tax: An excise tax is a statutory tax imposed at the point of sale on specified goods or services such as fuel, tobacco, and alcohol. Excise tax is a type of indirect tax that is passed on to the customer at the time of sale.
Property Tax: Property tax is a type of tax levied on property owned by a person or a legal body such as a business. Property owners must also pay property taxes on an annual basis. House taxes, like road taxes, pay to support repairs and upgrades to facilities inside those communities. Parks, gardens, residential roads, public lights, and many more facilities require weekly and annual maintenance. Property taxes are used to fund the upkeep of public infrastructure and services.
Road Tax: It is a charge collected from major highways and road users, sometimes known as toll tax. Route tax rates are determined by the distance travelled, the number of cars on the road, and the frequency of use. The rate and frequency at which road tax is collected are also influenced by repairs, improvements, and upgrades.
Inheritance or Estate Taxes: This type of tax is imposed on people who inherit huge amounts of money. The inheritance is divided into divisions that cater to different income levels and categories. The value of an inheritance has a direct impact on the tax rate. Before taxes are levied, inheritance tax considers the individual's status, age, and income.
Auditing: Auditing is one of the most important branches of accounting. It is the process of reviewing, examining, verifying, and evaluating a company's financial accounts and internal control system. There are two types of auditing in accounting and business: external auditing and internal auditing.
External Auditing: In this type of auditing an organisation seeks the services of independent and/or third-party individuals and/or organisations to conduct an assessment or review of the entity. The external auditors verify conformity with laws and regulations and assist the organisation in auditing its financial position
Internal Auditing: Internal audits look into the internal operations of a company, such as corporate governance and accounting methods.. These audits verify that rules and regulations are followed, and that financial reporting and data collecting are accurate and up to date.
Managerial Accounting: Managerial accounting focuses on improving a company's administration, increasing profits, and providing financial reports to management that influence planning and budgeting. Budgeting and forecasting, cost analysis, financial analysis, and reviewing previous business decisions are all examples of managerial accounting.
Fiduciary Accounting: Fiduciary accounting involves recording transactions related to a trust or estate entity and issuing periodic reports on the entity's status. Fiduciary accounting is the details of all of the executor's or trustee's receipts and disbursements, accurately dividing all transactions between principal and income. Fund Accounting: Fund accounting is a method of accounting used by non-profit organisations to track the amount of money allocated for various purposes and the usage of that cash. Fund accounting focuses on accountability rather than profit. Many charitable organizations such as NGOs or Human Welfare organisations are included in this branch of accounting.Forensic Accounting: Forensic accounting involves accounting and investigation approaches to detect the nature of financial fraud. Accounting, auditing, and investigative skills are used in forensic accounting to examine an individual's or business's finances. A forensic accountant's primary role is to examine financial data in order to identify money laundering, fraud, and other crimes.