Public Accounting Vs Private Accounting

1059 WordsMar 11, 20175 Pages
Michael Lopez Prof. Lapari 8 March 2017 Accounting 201 Public Accounting vs Private Accounting There are two types of accounting practices are public and private these two types are very distinct. I’m going to explain how these both practices work, the different jobs that both practices offer and finally the differences between the two. First I’m going to give the definition of both practices. Public Accounting is viewed as firms that serve clients such as businesses manufacturers, service companies, etc.), individuals, nonprofits and governments. Private Accounting refers to one person of a firm serves only one exclusive person, typically a corporation. Public Accounting as I mentioned is a firm who serves different clients, they are…show more content…
In this process a tax specialist uses the accounting methods to give you advice on your taxes and help you plan and prepare tax returns. Now there are two perspectives of tax accounting which are tax accounting for individuals and tax accounting for businesses. For the perspective from an individual taxation will involve the tracking of all funds that are coming in and out of the person’s possessions. Tax accounting in the individual’s perspective mainly focuses on income, deductions, investment gains or losses, and other transactions. When it comes to taxation for a business or corporation, it’ll mainly focus on the company’s earnings or income funds. However, there is an additional information that is needed regarding outgoing funds that go directly into the business such as specific business expenses and funds that go directly to shareholders. The final major area in public accounting is management consulting. Management consulting is when a management consultant provides guidance to management in different companies to improve their performance. They also advise governmental agencies and nonprofit organizations. Managements consultants mostly spend their time team meetings, client meetings, data analysis, and slide creation these consulting engagements provide insights and solutions that’ll lead to greater improvements to client organizations. Those were the three main areas of
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