We explain what accounting is, the types of accounting that exist and what the characteristics of each of them are.
What is accounting?
Accounting the capacity of a person or group of people to carry out 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 “accountant“, that is, of the accountant's questions a person who keeps books of calculations about a small business or company, banks and others.
See also: Cost accounting
Types of accounting
Accounting is classified according to the area where it is used:
- Business accounting Includes calculations of costs, expenses, income, production for the year, extraordinary expenses or income (tax, operating, financial penalties, exchange rate gains and losses).
- Financial accounting It includes the gross export surplus, added value, commercial margin, self-financing capacity, resources, assets, liabilities, amortization, company solvency, financial ratios, production factors and the exploitation 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 rigorous accounting controls are carried out to avoid errors.
- Matrix accounting It is one that uses matrices to more simply facilitate rows and columns of debits and credits in its books.
- Cost accounting It can be linked to business and/or financial accounting, it covers everything internal to the company, materials, salaries, facilities and serves to prepare data on production, investment, purchase of merchandise, social charges, financial expenses, amortizations and provisions for the year. in progress. On the other hand, it includes what refers to subsidies, turnover, income from borrowed capital, obligations on other companies. This leads to a profit or loss result, the net result of the company.
- National accounting It 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 by the legislative branch. And then, an execution. In this case, control is governed by a court of accounts where every year budget balances, financing of public spending, direct and indirect taxes, tax revenues such as VAT (value added tax) are announced. This concept is related to the “trade balance” which 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 in which it is positioned. In addition, it is in charge of seeing the way of expansion in the future. Its topics to be discussed are: sales planning, optimization, new resources, marketing, their costs. It also focuses on following production numbers, making a cost plan, a supply plan, the possibility of expanding the margin and an internal financing plan and to encourage consumption. This implies the search for greater effectiveness, includes creativity, new ideas to implement.
