Accounting, which is generally referred as “the language of business”, is used to measure the organization’s economic activities. This measurement, communication or processing of different types of economic entities is termed as “Accountancy”.

This information is then conveyed to the variety of users including creditors, investors, management as well as regulators. All these things are handled by accountants or financial managers who are considered as financial specialists at the heart of all areas of business, and nowadays generally offer much more than auditing and bookkeeping.

This area of accountancy can be divided into several fields, which generally include management accounting, financial accounting, tax accounting as well as auditing. The areas of accountancy are divided into three main parts:

• Private Practice

• Industry and Commerce

• Public Sector

Let us discuss these three parts in detail and look out different accounting sectors included within those areas:

• Private Practice:

Majority of all types of accounting firms and that too of all sizes fall into this area of accountancy. The qualified financial managers are been employed in the private practice and along with that the sector involves with the qualified technicians.

• • Auditing:

The auditors are the one who examines the accounts prepared by someone else. While examining accounts, they ask several questions as well as check respective supporting documents. Thus, by qualifying a professional body one can gain the Registered Auditor status and thus can audit the private limited companies and firms with limited public liability.

• • Management consultancy:

The financial managers of management consultancy advise on the ways how the firms may become more profitable. By looking at the firm’s records as well as book-keeping methods, various financial managers considers the overall management and organisation that provides general business advice by suggesting the improved ways of doing different things.

• • Taxation:

Taxation levels are usually liable to the change with each budget that is being released. Thus, these require specialist financial managers as they have to study the subject continuously.

• • Others:

This includes the dealing with the execution, receivership, trusteeship and many other functions along with company secretarial and the registration work.

• Industry and Commerce:

Majority of the success of any of the commercial or industrial sectors has being tied-up with the economics like cash flow, budgeting, cost control as well as accounting systems. This field generally includes following:

• • Management and cost accounting:

In this area, the budgetary controls, expenditure as well as its monitoring are the main tasks that are being observed by the respective persons. It also includes work like analysis and compare of costs, preparing management reports and many more.

• • Financial accounting:

This area of accountancy deals with keeping the records of monetary transactions that includes tasks such as supervising the firm, internal auditing, preparing accounts & reports for directors, preparing share prospectus so as to raise the new capital and many more.

• • Others:

It involves functions such as treasury management, tax management and many more. Majority of the work are related to public services as well as management consultancy.

• Public Sector:

The financial managers of the public sectors are having main role in the administration as well as use of money. The health authorities, central government organizations as well local government authorities provides major source of employment for financial managers.

• • Local government:

Financial managers in the local government require wide range of specialised knowledge of the role and functions of the local authorities. In this, each departmental head use to make changes in the case of improved services as well as resources.

• • Government finance:

Majority of the work related to the industry and the private practice but still tends to be that of greater involvement along with financial investigations. Other responsibilities may relate with the auditing government-owned establishments, contract costs, financial control and many more.

• • Public bodies:

The organizations such as public utilities or health authorities operate on the commercial basis along with an internal organization that is similar to the large industrial concern. Most of the financial managers working within these circumstances have various duties as compared to those working in the industry.

Thus these were specific areas of accountancy that relates with accounting and its related factors.

Author’s Bio:

Chris, the author of this post is a renowned accountant and legal financial advisor who work with GC Accountants. She is sharing with us some of the important areas of accounting and is providing a brief guide on it.