SPECIALIZED FIELDS and BRANCHES of Accounting

In the Philippine setting, accounting is segregated into four specialized fields and they are incorporated in the CMO No.3 Series of 2007, specifically: Public Accounting Private Accounting Government Accounting Accounting Education

PUBLIC ACCOUNTING
Accountants are said to be in public accounting when they offer their professional services for a fee the way other professionals do. Accountants in the public accounting practice are not employees of their clients. The following are the branches of Public Accounting field: EXTERNAL AUDITING External Auditing is concerned with rendering and expressing an opinion regarding the fairness of the contents of the Financial Statements of the client organization. External Auditors should be licensed CPAs as a requirement. Independent CPAs who renders external auditing services must be accredited by Board of Accountancy (BOA). In auditing, the audit work does not cover 100% of financial records but examines them selectively or do sampling tests on the accounting records. While the finish product of Financial Accounting is Financial Statements, the end product of External Auditing is the Independent Auditors Report. TAX SERVICES Whatever form of business organization the organization belongs, the entity is required to file and pay taxes. For tax compliance, accountants in public practice prepare various tax returns for income taxes, business taxes and transfer taxes. He may represent the client in tax assessment and examinations conducted by the BIR personnel. From time to time, BIR and local authorities sets out new regulations and advisories. Hence, Accountants rendering these services must always be updated and be constantly familiar with the tax laws, BIR regulations, local tax laws so they can readily give advises to their clients. Note that, a tax accountant or tax consultant need not be a CPA. MANAGEMENT ADVISORY SERVICES Accountants providing Managerial or Management Advisory Services, as the terms implies, renders assistance to management by giving advises to clients concerning finance, accounting, budgeting, accounting systems, organization policies and procedures, product costing, pricing and distribution, and other business undertakings. Likewise, a management accountant or management consultant need not also be a CPA.

PRIVATE ACCOUNTING
When accountants are employed in private businesses and non-profit organizations they are said to be in private accounting. Meaning, they are employees of the company performing accounting tasks.

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Some companies, especially large ones grouped accounting tasks accordingly and divide their accounting departments into sections of similar jobs. The branches of Private Accounting field are as follows: FINANCIAL ACCOUNTING deals with the bookkeeping of transactions and events of the organization, and preparation of the basic Financial Statements of the company in accordance with GAAP. COST ACCOUNTING is concerned with inventory costing or product costing of the processed or manufactured goods. Cost accounting data are used for pricing of products offered by the company; planning and forecasting; and controlling of expenditures. TAX ACCOUNTING is involved with tax compliance and tax planning. Tax accountants or specialist deals with preparation of various tax returns for tax compliance and do tax planning to minimize the impact of taxes on the business. PLANNING and BUDGETING, and COMPTROLLERSHIP deal with business and financial planning, strategic planning, budgeting, analysis, monitoring and controlling businesses. This branch looks into the strategies and future directions of the business. INTERNAL AUDITING is concerned with safeguarding and protection of organizations assets, reliability of accounting records, and adherence to established policies and procedures of the company. Internal Auditors maybe internally hired or outsourced by an organization. They do not report to any financial or accounting officer so as not to ruin their independence which is critical to their work. Instead, they are hired to directly report to the audit committee of the organization. INTERNATIONAL ACCOUNTING covers accounting for international transactions, comparisons of accounting practices and principles in different countries, and synchronization of varied accounting standards worldwide and the tax requirements in the countries in which the company does business. SOCIO-ECONOMIC ACCOUNTING concerns with the measurement of the impact on the public sector about the decisions made by business or government agencies. The accountant engaged in social accounting supplements his accounting study with social science. NOT-FOR-PROFIT ACCOUNTING involves with special accounting for philanthropic or charitable institutions or foundations, religious organizations, governmental agencies, cooperatives, and non-profit educational institutions. Not-for-profit entities may earn profits but they are used for the organizations benefit and those they serve.

GOVERNMENT ACCOUNTING
Government and local government units such as provinces, cities, municipalities, and barangays are typically uses funds coming from budget allotment. And, this is where government accounting comes in Government Accounting primarily centers its focus on the proper accounting and custody of government funds and their purposes. Government Accounting is a specialized field because it uses terminologies different from that of Financial Accounting.

ACCOUNTING EDUCATION
ACCOUNTING EDUCATION focuses in educating students and professionals alike about accounting, auditing, taxation, and advanced accounting and business subjects. It is the accounting educators who prepare the curriculum for accounting education. Take note, an accountant may engage himself in various specialized fields simultaneously. He/she may be employed privately or in government, and at the same time, publicly practice accounting profession independently, and, also be a part of the academe as a professor in an educational institution which offers Accountancy courses.

Researched by WBBBB Accounting & Management Services. Click & visit our internet site: http://wbbbb-ams.blogspot.com/ Email us: wbbbb.ams@gmail.com Call/Text CP: 0917 767 78 56 / 0908 741 97 42 Call DL: 378 54 04 Services Offered: Business Registration Management Advisory Services Accounting/Bookkeeping Tax Advisory/Services Loans/Projects Proposals External Auditing Tax Returns Payroll Computation Services Financial Statements Financial Reports Assistance to SEC, BIR, SSS, Pag-ibig, Phil-health, etc Tutorials, Training or Consulting Services