No company can expect to do well in this financial world without having proper accounting. Regardless of how big a business is, or what industry it operates in, accounting is a crucial bit. So today, we’re gonna talk about the main types of accounting that everyone should know about. That’s especially true if you own an SME and are looking to conduct your own accounting or hire external services. Now, let’s jump into it all and learn more about the types, shall we?
Types of Accounting
Financial Accounting
This is definitely the most common type of accounting that everyone immediately thinks about. It’s all about recording a company’s financial transactions as well as reporting and analyzing them. That includes preparing financial statements, which gives valuable insights into the financial health of a company. Now financial accounting follows certain standards like IFRS and GAAP. If you wanna know more about UAE’s accounting standards, check this out!
Managerial Accounting
So, this one is for insider work and helps management for multiple reasons. Internal stakeholders can use this type of accounting to help them make business decisions. You see, among the types of accounting, this one includes budget work as well as cost analysis and forecasts. This helps companies and their accountants do some smart financial planning ahead! Usually, this type of accounting is tailor-made to the needs of the company.
Cost Accounting
Now, since we know what managerial accounting is, it’s time to dig a bit deeper. Cost accounting is a branch of managerial accounting. And out of all the types of accounting, this one deals with the monetary side of business management. It helps companies evaluate costs, put pricing strategies, and look for better opportunities in terms of expenses.
Tax Accounting
Tax accounting, especially corporate tax accounting is an important part of business. This type of accounting involved tax calculations, planning, and adherence to tax laws. Although the UAE was a tax-free country, the recent introduction of tax laws made tax accounting a must. That is especially true if your company needs to register for VAT!
Forensic Accounting
Out of all types of accounting, this one is pretty crucial. If stakeholders, for example, have a suspicion of fraud, they can request forensic accounting. Now this involves a thorough investigation for any discrepancies or fraud. Forensic accountants comb through a company’s finances and analyze them for any sign of embezzlement, laundering, or any type of financial crime. This type of accounting is also required for court cases and more!
Auditing
Last but not least, we have auditing. So, auditing involves the examination of different records to ensure that a company’s operations comply with laws and regulations. Auditing isn’t just limited to finances, it can include operational auditing, and more. But if you wanna learn about the types of auditing in detail, check this out!
Wanna Outsource Any Type of Accounting Services?
Knowing the different types of accounting can definitely be helpful for businesses. However, if you’re just starting up or have an SME, your best bet is to outsource accounting services. Luckily, the right accounting firm can do wonders for your company! Luckily for you, we’re right here for you. Noraal can offer accounting solutions tailored just for your business! And that’s just one thing out of all the services we have to offer. So, if you’re ready for your company to grow and thrive in the UAE, contact us today for a free consultation!