I discussed a couple of interesting careers one could choose with a degree or CPA license, but there are also different types of accounting. Forensic accounting is a type in and of itself, very unique. However, governmental accounting could be anything from creating financial statements to being in charge of the inventories and individual resources that make up the statements. So, I would like to go over a couple types of accounting, including my favorite one.
In an article on Helium.com by Maggie Chingombe, I found some great information about the similarities and differences in accounting types. The two types are financial and managerial accounting. I will go over financial accounting first.
Financial accounting is basically creating financial reports for people outside of the company that are directly related to the company, such as stockholders. In order for the financial statements to be presented to the public, a financial accountant must have their work audited. Once everything is correct the financial reports can be presented to the public and interested parties outside of the organization can make decisions on whether or not to support it, e.g., buy stock.
Managerial accounting is my favorite! This type of accounting may be used in the governmental accounting discussed previously because it has to do with making decisions in the company and keeping track of the operations. Managerial accountants create reports just like financial accountants do; however, they do not publicize them. The reports used in managerial accounting are for internal purposes.
These reports are produced more often to insure that the leaders are making good decisions for the organization. They provide information that tells whether the company is doing well or not and in what divisions. Even though many notes are included with each report, I would imagine that the accountants that create these reports are also involved in the decision making. They are the ones with vital information that could help make or break a company depending on the conclusions decision makers come to.
Whichever type sounds best to you, remember that each is very important for the well-being of the company.