We explain what is accounting, the types of accounting that exist and what are their characteristics of each of them.
What is accounting?
Accounting is the ability of a person or group of people to perform work related to mathematical calculations , statistics, graphs, numerical records in order to order, establish all the movements of a company or business.
The word comes from ” accounting “, ie questions of the counter , holding books Person calculations on a trade or small business , banks and others.
Types of accounting
Accounting is classified according to the item where it is used:
- Business accounting: Includes calculations of costs, expenses, income , production of the year, expenses or extraordinary income (fiscal, operating, financial, loss and gain by exchange rate).
- Financial accounting : Includes gross export surplus, added value, commercial margin, self-financing capacity, resources, assets, liabilities , amortization, solvency of the company, financial ratios, production factors and the operating cycle.
- Bank accounting : For the management of different business funds, loans, securities, bonds , different types of currencies. They also work with econometric models that establish market variables, therefore, accounting controls are rigorous to avoid errors.
- Matrix accounting : It is one that uses matrices to facilitate more simply in rows and columns of debit and be in their books.
- Cost accounting : It can be linked to business and / or financial accounting covers everything internal to the company, materials, salaries , facilities and serves to prepareproduction data , investment salaries, purchase of goods, social charges, financial expenses, amortizations and provisions for the current year. On the other hand, it includes those related to subsidies, turnover, borrowed capital income, obligations on other companies. This leads to a profit or loss result, the net result of the company.
- National accounting : Refers to the accounting of the so-called “state budget”. Its economic declaration is extremely important for a nation and requires preparation, discussion and approval of the legislative branch. And then, an execution. In this case, the control is governed by a court of accounts where budget balances, public expenditure financing, direct and indirect taxes, tax revenues, including VAT (value added tax) are disclosed every year. This concept is related to the “trade balance” that is similar to the state budget.
- Planning accounting : It is the one that tends to see the possible positive changes within the company and in the environment that is positioned. In addition, it is responsible for seeing in the future the way of expansion. His topics to be discussed are: sales planning, optimization, new resources, marketing , their costs. It also focuses on tracking production numbers, making a cost plan, a supply plan, possibility of expanding the margin and internal financing plan and for consumption incentive. This implies the search for greater effectiveness, including creativity , new ideas to implement.