Public Accounting Vs Private Accounting

Accounting is the methodical and full recording of financial transactions relating to a business, and it also denotes to the procedure of briefing, examining and evaluating these transactions to cross checking agencies and tax collection agencies. Accounting is one of the key purposes for nearly any company. It may be done by an auditor and accountant at small businesses or by substantial finance subdivisions with lots of employee’s at

The profession of accounting is a one that is highly regulated, due to the knowledge and power each accountant possesses. Although an accountants duties differ from one position to the next, the main sectors that accountants pursue are auditing or taxation. Auditing is ensuring the public that the information listed on the financial statements of public companies is free of material misstatements. While taxation is helping people or companies file their tax returns to the federal government or offering tax advice. In the world of auditing, you either follow the Public Company Accounting Oversight Board (PCAOB), for public company audits, or the American Institute of Certified Public Accountants (AICPA), for other entities

The structure of an organization will affect its financial management. Generally financial accounting is for outside use so they emphasize external reporting; which means they report to third parties such as; Medicare, Medicaid and other government entities and health plan payers. Managerial accounting is considered to be prospective as well as retrospective. It is of the upmost importance that the accountant must follow the guidelines principles and ethical standards of planning, controlling, organizing and directing, and decision making if they want to be successful at their job.

Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions. These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial

The CPA's traditional environment focused on auditing, accounting services, tax, and management services. Some of these services in taxation and management can be competently rendered by others. Only CPAs (and other public accountants where permitted by law) are licensed to examine financial statements and express opinions for which they are

Accountants might give information to an open accountant, who goes about as an advisor, reviewer and duty administration proficient. Partnerships, charities, associations and governments use administration accountants to record and examine money related data of the organizations in which they are utilized. They for the most part prompt organization officials, lenders, stockholders, administrative offices and expense work force. Accountants might likewise work with government authorities who are looking at and keeping up the money related records of the private business for which an accountant is utilized, regarding tax collection and government

According to Granof, “conventional, business-type management accounting focuses mainly on maximizing net inflow of cash. The aims of governments and not-for-profit organizations, of course, go well beyond maximizing cash flow” (Granof, 2013). Accountants in government and not-for-profit organizations can play several roles in the fiscal management of that organization.

Why do we study comparative accounting? Countries around the world have different aspects such as taxation, legal systems, culture and colonial influence that differ the way accounting is reported. Ultimately the need for fair presentation is the final objective to comparative accounting. Thousands of years ago when accounting was first practiced, each country practiced financial reporting according to the power and strengths in their country, regardless of how accounting was reported in neighboring countries. Nowadays, because the world is becoming more globalized and harmonized, standard-setters feel the need to report their accounting in a uniform way. The International Accounting Standards Board [IASB] was formed as a non-for-profit

They also have to have training in public and management accounting. Passing an examination to become a CPA (Certified Public Accountant), obtaining a state licenses, completing specific accounting courses and earned a certain number of college credits (five years of study in many states) and worked a certain number of years in public accounting, industry, or government; and lived in that state a certain length of time before taking the CPA examination

The Accounting profession is distinguished by the heavy demand placed upon its practitioner to adhere to laws, standards, regulations and best practices. Any failure to do so may result in financial loss, economic oversights and even legal penalties. As a result, it is incumbent upon the accounting professional to recognize and abide the external influences that help to define the field. Distinct political, economic and cultural factors converge to define practice within the accounting profession.

Finance and Accounting is the only business function that accepts the responsibility to act I public interest. Hence the onus lies on the professionals to act in public interest and not restrict themselves to individual or the organisation.

Another main difference between the two different styles of accounting is their relevance of information. Accounting4management.com states that financial accounting mainly is concerned with data that is “objective and verifiable” where managerial accounting is concerned more with information that is relevant to the

The definition of accounting theory according to Coetsee (2010) is described in two different ways. The first philosophy concludes that accounting theory is a set of general principles that guide the evolution of accounting practice. The other philosophy describes accounting theory as activity of explaining and predicting accounting practice. What the viewer can see from the statement of the first philosophy is that the accounting theory exists before accounting practices meanwhile the latter states that the accounting practice exists before the theory. Since there are many arguments about this matter, many academic researchers have concluded that accounting theory can be divided into two categories which are positive and normative theory.

Accounting is the language of business. It is a profession that is being guided by principles, concepts, conventions, laws, etc. All these fundamental building blocks serve as common and general compasses to all practitioners of the profession. In some cases, they are nation-wide tailored, while in other cases, they are universally tailored. Accounting as a living, practical, dynamic and realistic profession covers so many areas of social, economic (business), and governmental activities. Surely, any endeavour that involves monetary and material activities create a room for the services of Accounting. Many of the human endeavours for which the accounting profession plays significant (some times inevitable) roles include; Banking, Insurance, Manufacturing, Farming Contracting, Oil and Gas, Mining, Transportation (Air, Land and Sea), Educational Institutions, Churches, Ministries, ICT, Hire Purchase, Local Government Authorities, Estate Businesses, Export and Import Businesses, Bill of Exchange Transactions, Royalties Transactions, Consignment Transactions, Stock Market Transactions, Sports, Entertainment, Hospitals and Hospitality Industry, etc.

Consulting- Advisory and add value and improve organization 's governance, risk management and control processes.