Types of Accounting and Their Meanings You Should Know

Do you already know the types of accounting that are widely used in Indonesia? Accounting itself is one of the fields of science that is widely studied and used in various aspects of life. Broadly speaking, accounting is closely related to finance, calculations, and money recording activities. Actually, almost all of us have done accounting activities in our daily life. To understand more about the field of accounting, you need to know what types of accounting are widely used along with their respective meanings.

Financial Accounting (General Accounting)
Financial accounting is a type of accounting that is best known to the wider community. In this type of accounting, there is the activity of recording and presenting financial statements in one period. These financial statements are prepared and also used by interested parties, both internal and external parties in a company.

In accounting, there is a standard known as the Financial Accounting Standard or SAK. These standards have been generally accepted by accounting actors, both report makers and report readers. Therefore, every report made must comply with predetermined standards.

Banking account
Banking accounting is a type of accounting that uses a special account that is only used by banks. Although somewhat different from financial accounting, this accounting also presents reports for internal and external parties such as those in financial accounting. The difference is, the internal and external parties referred to here are those related to banking.

This type of accounting is used by banks to record financial reports and banking transactions that occur at the bank. Recording of these transactions is known as an administrative account.

Cost Accounting
There are certain types of accounting used in a company. One of them is cost accounting. Cost accounting is accounting that can be used to manage various things related to company costs. With this accounting, a company can control and plan its operational costs.

In cost accounting discussed pricing based on costs that must be incurred by the company. Then the cost of goods will be added to the profit you want to make. This will make it easier for companies to determine the selling price.

Management Accounting
Management accounting is a type of accounting that deals with company management. This accounting produces two types of information, namely quantitative information in the form of financial reports and qualitative information such as non-financial reports. Financial reports in management accounting are closed and confidential in nature so that they are only intended for management only. Every calculation contained in this accounting is based on management's needs and is also guided by the management system.

Tax Accounting
Tax accounting is a type of accounting that deals with tax calculations. This accounting is used to calculate and determine the amount of tax payable that must be borne by the company.

The financial statements contained in this accounting are devoted to various tax calculations from taxable income or PKP. The financial statements that are made can be used by the company for the basis for making decisions and policies regarding taxes.

Accounting Auditing (Auditing)
As the name suggests, audit accounting is a type of accounting that is used to audit or examine financial transactions and reports. Not only examining finances, in accounting this is also used to provide an assessment or opinion regarding the feasibility of audited financial statements.

In order for the results of the report to be impartial or to benefit certain parties, the audit process must be carried out by an independent party. They must be able to examine various financial reports and also evidence of company transactions carefully by utilizing audit accounting.

Thus a review of the types of accounting and their meanings. For those of you who are interested in using software to make the company's accounting process easier, you can consult with the best accounting software providers in Indonesia. For this reason, Soltius Indonesia is here to provide solutions in the application and development of the best accounting software products in Indonesia.