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There Are 4 Types of Accounting

Financial Accounting: summarises a company's financial transactions throughout the course of its accounting period into financial statements including cash flow statements, balance sheets, and profit and loss statements (P&L) statements. These statements are made by the significant external stakeholders at startups, including the board of directors and investors.

Cost Accounting: This type of accounting keeps track of the money spent on making goods and providing services. Startups use these facts to create budgets, forecast future events, and evaluate current operations.

Tax Accounting: This type of accounting keeps track of incoming and outgoing funds related to a company's operations and their impact on the tax burden of the startup.

Management Accounting: This discipline also goes by the name of management accounting and follows the same rules as financial accounting. Financial information is only documented in this type of accounting for internal stakeholders who will use it to make defensible business decisions.

There are two types of accounting:

According to the accrual basis of accounting, regardless of when the initial monies exchange hands, expenses and revenues are recorded as they are incurred. The most popular accounting technique that accurately depicts a startup's financial situation is this one. It also opens up space for deliberate decision-making.

Cash Basis Accounting: By only recording expenses and revenues at the time when the monies necessary for a given transaction are exchanged, this accounting system enables more immediate recognition of costs and income. Consult the best CA firm in Indore.

Accounting Work in India


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