Accounting - Term Overview

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Accounting the ability of a person or group of people to perform work related to mathematical calculations, statistics, graphics, numerical records in order to order, establish all the movements of a company or trade.

The word comes from " accounting ", ie questions of the counter, holding books Person calculations on a trade or small business, banks and others.

Types of accounting

Accounting is classified according to the category where it's used, common examples are:

  • Business accounting: It includes calculations of costs, expenses, income, production for the year, expenses or extraordinary income (tax, operating, financial penalties, losses and gains due to exchange rates).
  • Financial accounting: It includes the gross export surplus, added value, commercial margin, self-financing capacity, resources, assets, liabilities, amortization, solvency of the company, financial ratios, production factors and the operating cycle.
  • Matrix accounting: It's one that uses matrices to facilitate in a simpler way in rows and columns of must and have in its books.
  • Cost accounting: It can be linked to business and / or financial accounting, it covers everything internal to the company, materials, salaries, facilities and is used to prepare data on production, investment, purchase of goods, social charges, financial expenses, depreciation and provisions for the year in progress. On the other hand, includes terms of subsidies, number of businesses, income capital borrowed, obligations on other companies. This leads to a profit or loss result, the bottom line of the business.
  • National contability: It refers to the accounting of the so-called “state budget”. Its economic declaration is extremely important for a nation and requires preparation, discussion and approval of the legislature. And then an execution. In this case, the control is governed by a court of accounts where every year budgetary balances, financing of public spending, direct and indirect taxes, tax revenues, such as VAT (value added tax), are disclosed. This concept is related to the “trade balance” which is similar to the state budget.
  • Planning accounting: It's the one that tends to see the possible positive changes within the company and in the environment in which it's positioned. In addition, it's in charge of seeing the way of expansion in the future. Its topics to be discussed are: sales planning, optimization, new resources, marketing, their costs. It also focuses on following production numbers, making a cost plan, a supply plan, the possibility of expanding the margin and an internal financing plan and for incentive consumption. This implies the search for greater effectiveness, includes creativity, new ideas to implement.

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