The accounting is considered a discipline that is in pursuit of measurement, registration and interpretation of capital of an organization of private or public. Accounting is based on several methods, such as the quantification of capital and the ordering of all accounting information that helps facilitate decision-making, through the financial statements that arise from accounting. This discipline, in turn, has a fairly broad scope according to its fields, including finance, auditing, and administrative accounting.
What is accounting
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As mentioned previously, accounting is a discipline by which various accounts, records and measurements of the capital of a specific institution are carried out. If viewed from a generic point of view, there is no business that does not contemplate, even in its beginnings, accounting; This is because no matter when or where, you will always have to take the accounts of the capital invested, received and the next to invest. Even when it comes to informal trade, an accounting must be carried out to maintain control of the products that are offered to the public.
The word accounting refers directly to the person who performs this management, who is called an accountant. On the other hand, this discipline could also be easily defined as the space or office where the accounts and data of a certain entity are carried out, whether public or private.
Regarding the latter, generally when reference is made to public accounting, many come to think that this profession can only be exercised in bodies and institutions related to the State, however, the reality is that the accountant can exercise their functions in all kinds of Business.
The public accountant
To understand what public accounting is, as it is also known in the practical area, it is necessary to be clear about who are the people who exercise this profession and how they carry it out in daily life. In the first place, the person in charge of carrying out this management is a public accountant, who after studying at the accounting and administration faculty, obtains his degree in accounting and proceeds to practice his profession through private or public procedures. The public accountant has the ability to interpret the financial statements of a specific body, company or entity.
It is also capable of registering all those transactions of financial origin, establishing and maintaining relationships regarding the credit of companies and preparing all kinds of projects related to capital investment.
Management, in terms of contributions by the entity in which the accountant works, is also part of its primary functions, as well as the performance of audit projects and tax matters. The management of this professional is very broad and, like any discipline, extremely important not only for companies and non-profit organizations, but also for those of private origin.
Types of accounting
Like any discipline, there are a series of elements or branches that go hand in hand to give a broader meaning to what is accounting. Both accounting and bookkeeping have functions that span many elements, but when it comes to business, the situation becomes even more complex than you might think.
Each entity is endowed with a series of departments, processes and, most importantly, personnel. Precisely for this reason it is divided into three types to take into consideration: Accounting according to its origin, its business management and the information that it can handle.
According to its origin
This aspect is subdivided into a classification of two more elements, which are public accounting and private accounting.
Public accounting
Here we face a function of registration and structure of all operations, projects and planning carried out by companies, organizations, entities or public bodies, always from an accounting point of view. Public refers to the fact that their actions are directly aligned with the wishes of the State, government or leaders of a country proper.
Private accounting
This consists of the control of projects, operations and activities carried out by individuals.
According to your activity
Here we talk about the operations carried out by the company and, as in the previous point, it has an even broader classification and 4 aspects that must be fully explained.
Industrial accounting
Industrial accounting presents an approach which is aimed at those institutions that work with raw material and manage to transform it into specific products, that is, into more elaborate ones under their control, observation and responsibility.
Business accounting
Commercial accounting is based on the total control of income, expenses, investments, generic capital and all economic production of said company. In this way, the institution not only fulfills its main task, which is to sell or buy, but it also has a discipline in charge to have everything in perfect order.
Accounting for extractive companies
This focuses solely and exclusively on those institutions whose objective is the exploitation of the natural resources of a specific country or territory. For example, oil extraction companies.
Service accounting
Service accounting, as its name indicates, is in charge of regulating the institutions that provide basic services, be it water, electricity, gas, etc.
According to the information
According to the information handled by the entities and organizations, accounting is subdivided into 5 more aspects and in fact they are the most famous in this discipline.
financial Accounting
It is aimed directly at the managers and partners of the company because its focus is directed to economic and financial activity, as its name implies.
Administrative accounting
This is based on the public administration and management of the company in question.
Tax accounting
This kind of accounting is basically related to the declaration and payment of tax to the public treasury.
Cost accounting
Its approach is directed to industrial companies because there it is imperative to perform data analysis, production costs at a unit level, of the production process that is carried out in said company and, most importantly, the sale.
Management accounting
It is in charge of processing both the costs, as well as the economic and financial activity of the company in order to make decision- making possible. The information they offer is extensive and has the ability to provide solutions in short periods of time.
Accounting degree
The accounting curriculum is as broad as its profession, many fear it for the simple fact of seeing other disciplines somewhat complicated, for example, mathematics, law, administration and even economics, but it is thanks to them that you can have different approaches to the career and obtain the necessary information when practicing the profession. The accounting career is not easy, but that does not mean that it is impossible. There are a series of subjects that mark the correct path for the future accountant to know how to defend himself in the professional area and have his own criteria.
What subjects an accounting student sees
In itself, the subjects vary as the semesters go by, however, there are a series of subjects that are essential for the student to collect information and that, in addition, will be useful before, during and after completing the degree. These subjects are accounting, commercial, labor, constitutional, civil, finance, economics, administration, computer science (both basic and intensive), taxes, costs, auditing, total quality, professional ethics, permanent fiscal updating, etc. All these subjects and others that are optional, are what make up this broad career.
How many years do you study accounting
This is depends on the university and the region in which the degree is studied. But in generic examples, the degree can be obtained around 4 to 5 years, the semesters are divided between 8 and 10 according to the study plan and the capabilities or benefits that the academic institution has. There are also universities that offer a degree as accounting technicians and this only takes two years of study.
Difference between bookkeeping and accounting
While many people tend to say that accounting and bookkeeping are identical disciplines, in reality the opposite is true. Accounting is a branch of accounting and is responsible for making economic records in certain areas.
Unlike accounting, to practice accounting it is not necessary to go through a study program and apply to a university to obtain a degree, that is, any person, with knowledge learned through the trade, can practice accounting. Accounting is broad, you need a degree to practice it and it has a series of branches that solidify its management.
The branches of accounting make this discipline different from accounting precisely because of the scope and focus they have. For example, one of the branches, as previously mentioned, is accounting, but in addition, there are others that give life to this discipline and that play a decisive role in it. Costs are one of them, which are focused on generating all kinds of information that allows the transformation of the raw material into a product itself. Costs are also part of the accounting classification based on your information.
On the other hand, there is the fiscal branch and it is in charge of taxes, public finances and everything related to their calculation so that they can be paid soon in the stipulated time and without any type of setbacks.
There is also the branch of companies, this regulates in an accounting way individuals who interfere or have an interest in the organizations of companies, institutions or entities. The audit has a special function within the classification of this discipline and it is to observe the activities carried out by the rest of the branches, to check that everything is in order and that they work properly.
Finally, there is administrative accounting and this is a branch with managerial approaches. Each of these branches make a living within accounting and, although some also participate in accounting, they also make the two disciplines significantly different. Accounting is a discipline worth studying, encompassing and, most importantly, practicing.
