14 Accounting Fields and Complete Explanations

Accounting is one of the most important aspects of recording company financial report. The company's financial statements are also a very crucial document for companies, especially public companies (PT) – which must audit and report financial conditions at the end of the accounting period.

Accounting is basically a matter that covers a broad scope. Accounting has various fields such as ordinary accounting, financial accounting, tax accounting, and many other fields.

Are you someone who is interested in knowing more about the field of accounting? This article from DailySocial.id will take you deeper into related fields in accounting. WellFirst, let's know more about what is the meaning of accounting.

Understanding Accounting

The word accounting may already be very familiar to you, especially if you take courses / courses related to accounting or maybe you are a business person. According to the Big Indonesian Dictionary (KBBI), accounting is the art of recording and summarizing financial transaction data. Accounting will also discuss the consequences of these financial transactions on an individual or an organization. 

According to Weygandt, J. J et al (2019), accounting is an activity that includes the identification, recording, and communication of economic transactions in a company at a particular time. stakeholder or interested parties.

Accounting will be able to help companies in preparation of financial statements valid, transparent and accountable. Financial statements will be used as an evaluation material for the internal part of the company as well as a consideration for financial decisions for the external part of the company.

14 Accounting Fields and Complete Explanations

Accounting has various fields of specialization that will make the company's performance more efficient. Along with the development of scientific treasures, this accounting field can grow again with all the adjustments and developments in existing technology. Even so, currently there are approximately 14 accounting fields that you can learn. The following is an explanation of the accounting fields and their explanations.

Audit Accounting (Auditing)

The field of audit is accounting which discusses the supervision and examination of the financial statements of companies in an accounting period. The main objective of the audit activity is to ensure that the financial statements are appropriate and reliable. In the audit process, auditors need to pay attention to their objectivity and independence. That way, the company's financial statements can be accounted for

Financial Accounting (Financial accounting)

Financial accounting is a field of accounting that discusses the entire accounting process of an individual or company organizational unit. The main function of this field of financial accounting is for companies to carry out financial transactions with the final result in the form of financial statements.

Financial accountants are expected to be able to making financial reporting which is easy to digest for stakeholders who need information on the company's financial data. 

Tax accounting (Tax Accounting)

The type of tax accounting field is a field related to the activity of calculating the tax nominal in an organizational body. In addition, the tax accountant must also determine the tax object and the applicable rate for the tax object based on the applicable law.

That way, it is very important for tax accounting specialists to be able to know the articles and laws related to taxes. 

Cost accounting (cost accounting)

Furthermore, one type of accounting field that is no less popular is cost accounting. As the name suggests, this type of accounting is about recording and summarizing various costs (operating costs, overhead, as well as non-operational) that exist in the company.

With cost accounting, companies are expected to be able to determine the right price for a company's product. Companies can obtain optimal profits in an effective and efficient cost.

Cost accounting will contain various cost allocation methods that are most suitable and profitable for the company. The cost allocation methods that are often found in cost accounting are: Activity Based Costing (A B C).

Management Accounting (Management Accounting)

Another type of accounting field is management accounting. Management accounting is an accounting field whose report results will be shown for the purposes of internal parties, especially for the management in charge of making important decisions within the company.

Management accounting data can be used for managing company activities, monitoring expenditure and cash flow income, as well of course for making important decisions by managers. 

Budget Accounting (Budgetary Accounting)

According to the Big Indonesian Dictionary (KBBI), the budget is an estimate of cash in and out of an economic unit in the future. Budget accounting or budgetary accounting is accounting related to the management of company data for future planning of the company.

One of the benefits of budget accounting is that companies can see their financial performance in the future, by looking at the calculation of projections and forecasting. By knowing the forecast of the company's financial condition in the future, the company is able to formulate various policies according to the condition of the company. 

Government Accounting (Governmental Accounting)

As the name suggests, the field of government accounting is accounting that discusses the activities of recording, summarizing, and reporting financial data to government agencies. One of the main results of government accounting is that accountants are expected to be able to report financial statements that can be accounted for, especially because government accounting intersects with state financial data.  

Banking account (Banking Accounting)

The type of banking accounting field is accounting that discusses recording, summarizing, and reporting financial transaction data at banking institutions. The financial transaction data will be presented in the form of financial statements. The Financial Statements contain important information for stakeholders (both internal parties such as management and employees or external parties such as creditors and customers).

International Accounting (International Accounting)

The field of international accounting is accounting that includes financial transactions regardless of national borders, this accounting will compare the accounting principles of the countries involved in the transactions.

With the existence of international accounting, the fulfillment of the needs of the world community will be more secure, especially with the development of globalization. 

Social Accounting (Social Accounting)

The type of social accounting is accounting related to the process of recording and reporting on the financial data of an organization with the aim of being a form of corporate social responsibility for stakeholders.

With social accounting, the company will present financial reports on the social contribution of the company as well as the company's social costs for both internal and external parties of the company.

Behavioral Accounting (Behavioral Accounting)

Behavioral accounting is a part of accounting that considers the behavioral factors of workers that will affect the company's accounting process. This type of accounting also discusses that employee behavior can be influenced by decisions made by the company. Because of its nature which is closely related to the behavior of workers, this branch of accounting can also be referred to as human resource accounting or human resource accounting.

Educational Accounting (Educational Accounting)

This type of educational accounting field is one of the professional fields that many people are engaged in today. Unlike many other types of accounting who tend to work as accountants, educational accounting is accounting that has a direction in the realm of education.

This accounting education may be very familiar to you, especially if you are a student taking accounting courses, or if you are a student taking accounting courses.

Accounting System (Accounting System)

The field of accounting accounting system is accounting related to procedures or rules for recording and presenting accounting reports.

WellThese are various accounting fields that are worthy of your study, especially if you want to engage in one of these specializations in accounting. There is tax accounting that will discuss about the taxation of an organization.

The accounting audit will discuss the supervision of accounting activities during the accounting period. There are many more various kinds of accounting fields that can be used. Hopefully this article can help you in learning various types of accounting fields, yes!