What Are the Six Types of Accounting Services?

Accounting is one of the vital departments for any organization that maintains all financial aspects of the business. Although all different types of businesses need to follow the same type of accounting, their accounting practice differs.

If you are owning an organization or are a part of the organization then you must understand there are different types of accounting services. You need to follow the accounting service as per your business type.

There are six main accounting service types which are categorized as per the nature of the business. If you are a small or medium-sized organization and find it difficult to get an expert in-house accountant then you can outsource this task.

What are the main six types of accounting services?

Among different accounting services, there are six major accounting types that have slightly different accounting practices.

Here's the list of six main types of accounting services:

1. Public Accounting
2. Bookkeeping Accounting
3. Management Accounting
4. Tax Accounting
5. Internal Auditing Accounting
6. Payroll Accounting

1. Public Accounting

• Public Accounting deals in accounting for firms, businesses, and individuals. They help in creating different financial statements, audits, tax returns filing, etc.
• Providing proper financial advice for supervising the finances of the business. They help in achieving the proper financial goals of the organization.

2. Bookkeeping Accounting

• Bookkeeping is one of the primary accounting services where financial transactions are recorded as proper accounting books.
• It gives proper financial insights into the organization to understand the amount a company is supposed to receive, the amount owed, investments, etc.
• For making proper accounting statements, it is important to record all financial transactions in accounting books.

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3. Management Accounting

• Management Accounting aims at the proper management of the organization's finances and making a proper budget. Here, a proper analysis of the current financial data and previous financial data is considered.
• This improves the administration of the organization and allocates the funds properly. Important processes in management accounting are sales, budgeting, cost monitoring, and assisting in making financial decisions.

4. Tax Accounting

• Tax Accounting deals with all the tax-related aspects of the organization. It analysis financial records, financial books, budgets, and several other aspects.
• In tax accounting types of accounting services, it is important that all the tax accounting is done as per the guidelines of the respective region.

5. Internal Auditing Accounting

• Internal auditing aims at providing accurate data to the organization. In accounting service types of internal auditing, a proper analysis of all minor mistakes, fraud, and any other irregularities in the finances.
• Making proper financial statements to understand the exact position of the finances of the business. Survival and growth of the organization are highly dependent on internal auditing.

6. Payroll Accounting

• Payroll accounting handles all the salaries of employees and the other related aspects of the organization. They create, prepare, and maintain all the documents about the payments.
• Their activities consider taxes, paychecks, benefits, and other bonuses of the employee. Payroll accounting ensures proper payment to employees, accuracy in tax returns, and better consistency in the reports.

Conclusion

These are the six main types of accounting services for any organization. If you find it difficult to implement any specific type then you can outsource accounting to an expert agency.

Accounts Junction provides outsourced accounting service types for different organizations. Their knowledgeable and experienced staff knows the proper approach to use for each type of accounting.

They also have better accounting tools to handle the respective task. Accounts Junction is a popular accounting service-providing agency around the world.

FAQs 

1. Why do firms need different accounting services?

• Each firm has unique needs and goals. Using the right service helps track funds, cut errors, and plan growth with ease.

2. Can small firms use all six types of accounting?

• Small firms may not need all six types at once. They often start with bookkeeping, tax, and payroll to stay on track.

3. How does public accounting help a business?

• Public accounting gives key reports like audits and tax returns. It helps firms stay legal and make wise money moves.

4. Is bookkeeping still vital with modern tools?

• Yes, bookkeeping is still a basic step in finance. Tools can help, but you still need experts to keep books clean and real.

5. Why is management accounting key for growth?

• It helps plan budgets and check costs at each stage. This makes it easy to spot waste and fund better projects.

6. How does tax accounting save money?

• Tax experts help claim cuts and avoid big fines. They keep all tax work in line with local laws to save cash.

7. What role does internal audit play in firms?

• It finds gaps, fraud, or waste in money flows. This helps firms fix weak spots and keep records safe and clear.