Your Ultimate Guide to the Different Types of Accounting

A certified public accountant can specialise in many things, but, we often just refer to them with the blanket term “accountants.” Although all forms of accountancy involve working with financial information, many of us don’t know there are different types of accounting!

Check out this beginners guide to accounting in 2020.

Accountants are qualified professionals who analyse and balance financial accounts of companies, small businesses or individuals.

By using accounting system accountants ensure all money transactions (both in and out) are accurate and legally approved. They analyse all financial transactions to ensure the health and longevity of a company or individual.

Things like:

are all part of an accountant’s job. They often conduct evaluation reports stating their findings from financial records to provide proof of accounts to both owners and investors.

These reports help companies make critical business decisions about the future of business operations.

Accountants will always be in demand in Australia, and currently, the industry is estimated to grow at a steady rate for the next few years. As a career, becoming an accountant has great prospects.

Currently, 80% of accountants work full-time, and despite common belief, there is almost an even split between female and male workers, with females making up 52% of the accounting workforce.

It’s important to note that an accountant’s salary may increase or decrease, depending on the qualification and experience they have.

What’s great about this industry is the ability to specialise and find the type of accounting that interests you the most!

Check out this guide for how to become an accountant.

Below are ten different types of accountants that you may not have known!

This type of accountant works closely with clients, so excellent interpersonal skills are required. Business service accountants give business and tax advice to companies to ensure all tax affairs and financial accounts are in order and balanced.

Some of the duties these types of accountants take on include helping to prepare tax returns, developing business strategies to keep costs down and generating financial statements for owners and stakeholders.

This type of accountant works for larger companies and is in charge of ensuring all financial activity follows regulation and is legal. Giving financial is essential in this role to ensure all business accounts are correctly generated and maintained.

Most corporate accountants are company employees because of the sensitive nature of the information they’re dealing with.

All businesses have costs, whether it be the costs of services, products, labour etc. Cost accountants are the people who manage these costs.

The financial transactions that occur within a business need to be accurately filed and maintained, and cost accounting involves analysing these reports. Cost accountants then come up with methods to keep expenses low and streamline the management of these expenses.

Financial Accountants or ‘Finance Managers’ are often the leader of an accounting team at any given company.

Financial transactions are monitored and used to create financial reports and a company’s liabilities, income and expenses are all confirmed by this accountant. Financial accounting is similar to financial planning!

A forensic accountant works with law enforcement to uncover financial crimes such as money laundering, fraud or embezzlement.

Forensic accounting involves looking through financial reports, statements and raw data to reveal any inconsistencies that may indicate that a crime has been committed. These accountants and their expertise may also work on divorce proceedings and criminal trials.

A fund accountant’s role within a company is a little more structured than other accountants’, as daily and weekly reports of financial activity are expected.

Fund accounting involves investment portfolios either in mutual or hedge funds; hence, you’ll find fund accountants working within a company’s fund-management area.

As you may have already guessed, tax accountants are specialists in all things taxation. Audits, financial reports, tax returns (both personal and corporate) are all parts of tax accounting. Tax accountants can be asked for tax advice, clarification on tax laws, and for assistance in filing tax return forms correctly.

As you may have already guessed, tax accountants are specialists in all things taxation. Audits, financial reports, tax returns (both personal and corporate) are all parts of tax accounting. Tax accountants can be asked for tax advice, clarification on tax laws, and for assistance in filing tax return forms correctly.

Thorough, well-planned financial reports are critical for most companies. Management accounting involves generating these reports and giving them to owners, stakeholders and investors to indicate company performance. Not only do these reports show the current health of the company, but also offers future predictions.

These predictions provide accountants with the necessary material to give financial advice, to maximise company profit while still following all legal regulations. Management accountants are responsible for the generation of these reports!

Instead of working for specific businesses, project accountants work on specific short-term projects. These accountants are hired on for extra support surrounding a project to ensure there is thorough monitoring of its financial position.

It’s important to note that most certified accountants have completed a Bachelor’s Degree in accounting or finance (around 59%), with another 24.7% going on to complete a Post Graduate Accounting Degree.

It is possible; however, to build upon your accounting knowledge and gain entry into the industry with a short-course qualification such as a Diploma, Certificate or Pathway Program!

These courses can specialise in particular skills within accounting such as Payroll or Bookkeeping, while some are tailored towards working for a specific program/company.

Either way, these are a great option to either brush up on your accounting skills for personal use or to get your foot in the door to become an accountant.