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TYPES OF ACCOUNTING CAREERS

Any educated individual with an analytical understanding of finances can aspire to be an accountant. Interpersonal skills, ability to communicate and market awareness play a key role in understanding the complex and changing financial environment. Following are the different types of accounting careers:

Financial Accounting

The work of the financial accountant is to make analytical observations that would influence the investment and credit decisions.

Public Accounting

This type of accounting is the most varied type and includes bookkeeping, account management and financial analysis for individuals, private businesses, public firms, government or NGOs, which are based either nationally or internationally. A public accounting business can have one or more accountants and both certified and non-certified accountants can provide public accounting services to their clients. A public accountant can also be involved in external auditing or forensic accounting. Public accounting involves analyzing historical financial data to check for any discrepancies such as money laundering, embezzlement, frauds and any other illegal financial transaction and draw it to the attention of the law enforcement authorities.

Government Accounting

This form of public accounting is specific to government agencies and ensures all revenues and expenditure are in accordance to law. The conventional accounting methods of double entry system in ledgers and journals are used here. Government accounting is differentiated from other types of accounting in respect of providing service that is not profit based but service based. Government accountants are employed by the federal government.

National Income Accounting

This type of accounting is predominantly for the government and is responsible for providing the general public the data with reference to the gross national product about all market-related information, such as the value of the country's goods and services provided and its purchasing power.

Management Accounting

Accountants who specialize in this type of accounting are also known as private, industrial or corporate accountants. Management accountants provide their services to business houses for recording and studying the company's financial data. Their portfolio in the private firms includes cost and asset management, budgeting and performance evaluation.

Fiduciary Accounting

Accounting performed for a trust is called as fiduciary accounting and is done by the administrator, executor or the trustee, who also controls all property subjected to the trust.

Tax Accounting

An accountant who helps either an individual or a firm in filing a income tax return or planning taxes is known as a tax consultant. The tax accountant must be aware of the rules and regulations pertaining to tax policies.

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BOOKKEEPING: METHODS AND JOB DESCRIPTION

Bookkeeping is a task that relates to creating and maintaining a detailed record of all transactions which finances include. This procedure is to be carried out by all companies, whether a small firm or a large organization. The transactions recorded in bookkeeping usually comprise sales, purchases, due payments, earnings, etc. Some people might think bookkeeping to be the same as accounting. However, both are slightly different in the method of operation. Bookkeeping is a primary task and pertains to taking direct information and details from the transactions conducted. On the other hand, accounting is concerned with referring to bookkeeping records and then preparing reports accordingly. Read on to understand more about the basic concepts of bookkeeping.

Methods of Bookkeeping

Typically, there are two fundamental methods used in the process of bookkeeping: single-entry bookkeeping system and double-entry bookkeeping system.

Single-entry Bookkeeping System

Single-entry bookkeeping system is a method of bookkeeping wherein simple and uncomplicated transactions are maintained in the books. This method is largely used by companies on a small scale. Financial records associated with cash, accounts receivable, accounts payable, and taxes are generally created in a single-entry bookkeeping system. Other details such as inventory, assets and property, aggregate revenue, and expenditure are not recorded in financial books.

Double-entry Bookkeeping System

In a double-entry bookkeeping system, after every transaction, changes are made in a minimum of two accounts. In this system, both debit and credit accounts are maintained; which helps the company to find out any errors in calculations. If the debit amount does not match the credit amount, a transaction has been missed. This necessarily does not mean there cannot be errors in the books even if the debit and credit amount matches. Standard books in a double-entry bookkeeping system include daybooks, journals, ledgers, and petty cash book. About Bookkeeping Jobs

The bookkeeper job description includes most of the single and double-entry tasks. A bookkeeper has to collect all the information and use it for preparing statistical reports for financial management of the company. This professional can even be asked to oversee the functioning of accounting and payroll practices. For those thinking how to become a bookkeeper, you need to have a educational background in math, banking, and finance. You can either opt for a diploma or an associate's degree in any field related to bookkeeping. After obtaining relevant education qualification, you can look forward to work as a bookkeeper. To become a certified bookkeeper, you will need to show a work experience of two years in the field. Remember that the salary range for a job as a bookkeeper depends a lot on the certification. Other bookkeeping skills required are logical thinking, good communication, and a liking to work with figures and numbers. Note that bookkeeper duties may vary from company to company and the practices adopted. Bookkeeping is definitely very significant for a business to realize its income over expenditure.