Accounting types

There are two main types of accounting: financial accounting and management accounting.

Let’s see what the different accountants do in each of these branches:

Management accountants

Management accountants work internally to provide financial information to a business. In this way, they are usually in charge of providing all the financial details of the company to help it in decision making.

A management accountant can also take care of different tasks such as budget analysis, financial planning, and forecasting. The importance of management accounting lies in long-term planning, that is, achieving financial goals and planning finances based on budgets.

Financial accountants

Financial accountants are charged with providing financial information to external bodies, such as shareholders, investors, and creditors.

Unlike administrative accountants, financial accountants are more focused on the act of summarizing the current financial situation of a company, providing all the important information such as profitability, liquidity, solvency and stability of the company. Compared to management accounting, financial accounting can become a legal requirement.

Responsibilities within this practice area depend on the area of ​​accounting you specialize in, but you may end up working in: Accounting types

• Audit, insurance and advice.
• Recovery and insolvency of companies.
• Corporate finance and risk management.
• Forensic accounting.
• Taxes.